Stock futures plunge ahead of exciting earnings week
US Stock Futures drop early in the morning before the opening bell this week. This appears to be the case even as the first quarter earnings season continues to gather pace this week. Over the coming week, investors are likely to look to some industry-leading companies across the board. This includes, but is not limited to, the likes of netflix (NASDAQ:NFLX), You’re here (NASDAQ: TSLA), IBM (NYSE: IBM), and Nucor (NYSE: NUDE). However, it is important to note that all of this is happening as inflation continues to weigh on the stock market. Obviously, we can see this from last week’s mixed earnings from major banks such as JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC). For this reason, investors may turn to market analysts before making a move this week.
Providing an overview of the overall earnings season ahead is Raymond James’ (NYSE: RJF) Institutional Equity Strategist, Tavis McCourt. He writes, “Our belief remains that 2022E EPS is likely to decline a bit in earnings season, but probably less than we would have thought a month ago. And the more US-centric and service-centric the company is, the better the EPS outlook will be.“Nevertheless, companies will likely have to bring their A-game to the table this earnings season to impress investors. As of 5:24 a.m. ET, Dow, S&P 500 and Nasdaq futures are trading down 0.34%, 0.55% and 0.76% respectively.
Oil and gas stocks in focus as Biden reopens public lands
Oil and gas stocks may draw attention in the stock market today following the latest updates from the Biden administration. Namely, it would relate to plans by the US Department of the Interior (ID) to reopen 144,000 acres of public land. This land is now available to the energy industry for exploration and drilling projects. According to the ID, however, it will cost operators more to work in the newly opened space. To be precise, the next round of bidding will charge operators an 18.75% fee. This is a considerable jump from the existing rental charges of 12.5%. As it stands, the ID expects to reveal final sale notices and EAs by next week.
On the one hand, it would go against President Biden’s promise to end public auctions of land leases to energy companies. Overall, this decision is likely due to ongoing energy shortages around the world. As the Biden administration seeks to address this issue locally, this move would make sense. Moreover, the White House is already ensuring that the overall environmental footprint of these projects is reduced. As such, it could see some of the biggest names in the space in the spotlight this earnings season. Among the major players would be companies like Chevron (NYSE: CVX) and ExxonMobil (NYSE:XOM).
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Elon Musk teases takeover bid for Twitter
Elon Musk continues to make headlines in stock market news for the third week in a row. It comes like You’re here (NASDAQ: TSLA) The CEO’s back and forth with Twitter (NYSE: TWTR) continues. For the most part, an obscure tweet from Musk over the weekend may be pointing to a possible takeover bid to buy Twitter. It reads, “Love me tenderly.“If that were the case, it would see the billionaire investor make an offer directly to shareholders to buy the company.
Not to mention, the move follows Twitter’s board game to adopt a shareholder rights strategy. The likes that would give shareholders the right to “purchase, at the then-current exercise price, additional common shares having a then-current market value equal to twice the exercise price of the right.“Most importantly, this will only be the case if an entity acquires 15% or more of the outstanding shares of Twitter. This so-called “poison pillThe strategy could be the company’s way of preventing a Musk takeover while it considers its takeover bid. As of Thursday, the board was still valuing the $43 billion, $54.20 per share offer to buy the company, according to CEO Parag Agrawal. Either way, TWTR stock will likely turn heads during this week’s opening bell as well.
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CDC data suggests JNJ’s vaccine holds up well in breakthrough cases
Johnson & Johnson (NYSE: JNJ) received good news from the Centers for Diseases Control and Prevention (CDC) over the weekend. According to the CDC, the JNJ shot prevents hospitalizations, infections and deaths from covid as well as its main rivals. It would mainly be rival vaccine companies like Pfizer (NYSE: PFE)/ BioNTech (NASDAQ: BNTX) and Modern (NASDAQ: ARNM). Going into detail, the CDC notes that approximately 18.8 of every 100,000 people who received the JNJ vector-based vaccine were breakthrough cases. For reference, the Pfizer/BioNTech and Moderna plans score around 31.6 and 32.6 on the same sample size.
In addition, the CDC adds that its study focuses on individuals aged 5 and older. The current batch of data represents over 60% of the US population with samples from every region of the country. Considering all these parameters, JNJ’s vaccine seems to be holding up well. CDC data suggests that the JNJ vaccine outperforms rivals in reducing infections, even compared to those who received boosters. Regarding covid-based mortality prevention, JNJ was also tracking mRNA-based injections. With all of that in mind, JNJ shares might be worth checking out on the stock market today.
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Uber and Rakuten Collaborate on Food Delivery Payment Deal
Meanwhile, Uber (NYSE: UBER) is expanding into the Land of the Rising Sun. Notably, the ride-sharing company is now working with Rakuten, a Japanese e-commerce company to improve its local food delivery services. With the current team, Uber will rely on Rakuten’s payment services for its Uber Eats in Japan. In short, Rakuten is often referred to as the Amazon (NASDAQ: AMZN) of Japan. This would be understandable as Rakuten operates through a range of e-commerce and fintech solutions. The latter is its Rakuten Pay service. Additionally, the company also offers plenty of rewards through its Rakuten Points loyalty program.
According to Uber, the current integration with Rakuten Pay will be in phases until May 2022. Once complete, users with Rakuten accounts can log into Uber’s platform to earn and spend their Rakuten Points or Rakuten Credit. Pay. All of this is possible without a pre-existing Uber account. Overall, this would be part of Uber’s expansion into more international markets. Given that Rakuten has over 100 million members in Japan, this would be a strategic play for Uber. After considering all of this, investors can now look at UBER stocks.
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