Citigroup
Pre-Market:Pre-Market
Pre-Market active stocks
Gainers
- Coinbase (NASDAQ:COIN) shares surged 5.1%, with the cryptocurrency exchange gaining from the news that the U.S. securities regulator has authorized the first U.S.-listed exchange-traded funds to track bitcoin.
- Chewy (NYSE:CHWY) shares jumped 1.8% after Barclays upgraded the e-commerce business to ‘overweight’ from ‘equal weight’, identifying it as a likely contender for big gains within the tough market.
- Salesforce (NYSE:CRM) shares jumped 1.4% after Baird upgraded the cloud-based software business to ‘outperform’ from ‘neutral’, emphasizing the company’s good performance last year and current inexpensive valuation.
- American Airlines (NASDAQ:AAL) stock jumped 1.3% after Jefferies upgraded the airline to ‘buy’ from ‘hold’, citing cost reductions and greater utilization.
- Chesapeake Energy (NYSE:CHK) shares jumped 1.1% and Southwestern Energy Company (NYSE:SWN) sank 3.6% after the two boards authorized a merger valued at $7.4 billion, establishing a gas powerhouse.
- Alphabet (NASDAQ:GOOGL) shares climbed 0.4% on media reports that the tech giant’s Google business is firing hundreds of its employees across many sectors to lower expenses and support an ongoing push into artificial intelligence.
Losers
- Southwestern Energy Company (NYSE:SWN) sank 3.6% after the two boards authorized a merger valued at $7.4 billion, establishing a gas powerhouse.
- KB Home (NYSE:KBH) shares declined 3% after the homebuilder disappointed with its fourth-quarter results, as the average selling price for its houses fell 4.5% during the period.
- Citigroup (NYSE:C) stock slumped 1.5% after the banking behemoth recorded nearly $3.8 billion in combined charges and reserves that could erode its fourth-quarter earnings due to be disclosed on Friday.
Stocks in focus
Hertz worldwide (HTZ)
Shares of Hertz worldwide (HTZ) slumped more than 3% before of the opening bell, after the car rental firm stated it will cut around one-third of its worldwide electric vehicle (EV) fleet by selling about 20K EVs in the U.S. Hertz (HTZ) aims to utilize a portion of the revenues from the transaction to acquire internal combustion engine vehicles to fulfill customer demand. The sale will also result in a ~$245M extra net depreciation expenditure to be incurred in Q4 2023. The business stated this non-cash charge represents a write down of the EVs’ carrying values as of December 31, 2023 to their fair values.
Chesapeake (CHK) and Southwestern Energy (SWN)
The U.S. oil and gas business witnessed some further consolidation on Thursday, as Chesapeake Energy (CHK) and Southwestern Energy (SWN) announced a merger agreement in an all-stock deal valued at $7.4B, or $6.69/share. The combination will create a corporation with an enterprise value of around $24B that will likely be the top U.S. natural gas producer. Chesapeake (CHK) stock was up over 3% in pre-market trade, while Southwestern (SWN) stock was down ~1%. The CHK-SWN agreement comes only months after mega-mergers between Exxon Mobil (XOM) and Pioneer Natural Resources (PXD) and Chevron (CVX) and Hess (HES).
Citigroup (C)
Shares of Citigroup (C) dipped more than 1% before of market open, after the lender announced it has incurred a $1.3B charge in its Q4 2023 pretax results owing to increases in transfer risk connected with exposures outside the U.S., largely related to Argentina. Specifically, Citi (C) recorded a $720M reserve build in the quarter relating to cross-border and cross-currency exposures in Argentina, and a $580M reserve build linked to extended political and economic turmoil in Russia. The bank is due to release its Q4 numbers on Friday.
Occidental Petroleum (NYSE:OXY)
Occidental Petroleum (NYSE:OXY) stock climbed more than 1% in pre-market activity. A regulatory filing after hours on Wednesday indicated that Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has now built a 34% passive interest in Occidental (OXY), up from 28% earlier. Separately, in another regulatory filing, OXY reported that in November last year company was requested to temporarily suspend some activities in the eastern Gulf of Mexico. The business expects a drop to its Q4 2023 Gulf of Mexico oil and gas sales volume outlook owing to the delay, currently anticipating 127 Mboed compared to a prior expectation of 152-158 Mboed. Total firm output is still predicted to remain within its given projection.
WEEKLY EARNINGS CALENDAR
Friday, JAN 12
Wells Fargo (WFC) Bank of America (BAC) BlackRock (BLK) BNY Mellon (BK) Citigroup (C) Delta Air Lines (DAL) JPMorgan Chase (JPM) UnitedHealth (UNH)
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Airbnb suffers as a result of KeyBanc’s downgrade
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Following the split, WK Kellogg began at Sell.
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WK Kellogg’s stock dropped significantly on the first day after the spinoff, closing more than 9% down on Monday.
Nortfolk Southern and Bread Financial have been downgraded.
Norfolk Southern (NYSE:NSC) shares fell more than 2% on Monday after BofA Securities downgraded the firm to Neutral from Buy and reduced its price objective to $215.00 from $266.00, citing operational difficulties and excessive costs.
Bread Financial (NYSE:BFH) has been downgraded to Sell from Neutral by Goldman Sachs, with a $32 price target. As a result, shares dropped about 2% on Monday.
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ell suffers as a result of a downgrade by Barclays.
Dell Technologies (NYSE:DELL) shares tumbled 3% before the bell on Thursday after Barclays downgraded the firm to Underweight from Equalweight, with a $53.00 price target.
Cloudflare began at Underperform.
Cloudflare (NYSE:NET) has been added to BofA Securities’ coverage with an Underperform rating and a $52.00 price objective.
Crocs (NASDAQ:CROX) shares were down more than 2% in pre-market trading today after B.Riley downgraded the firm to Neutral from Buy and reduced its price objective to $101.00 from $125.00.
Verint Systems (NASDAQ:VRNT) was downgraded from Outperform to Perform by Oppenheimer.
Following the company’s announced Q2 EPS and sales misses, as well as dismal full-year forecasts, shares fell more than 17% pre-market today.