Market Movesnt Shifts
S&P futures (SPX) were flat. Nasdaq 100 futures (NDX:IND) +0.1% edged up and Dow futures (INDU) -0.1% edged lower.
Ford rockets upward; Snap slumps
Shares in Ford Motor (NYSE:F) surged in premarket U.S. trade on Wednesday after the car giant revealed a revenue estimate that beat analysts’ expectations and committed to return more cash to its stakeholders.
Michigan-based Ford forecast for yearly pre-tax income of $10 billion to $20 billion, surpassing Bloomberg consensus projections of $9.5 billion. The business said that it will distribute a supplementary dividend of $0.18 per share for the first quarter, coupled with a normal pay-out of $0.15.
But executives told analysts that they were reducing spending on next-generation electric vehicles due to price fluctuations around non-combustion automobiles in the previous year.
Elsewhere, Snap (NYSE:SNAP) shares plunged by more than 30% after the social media business announced quarterly sales of $1.36B, below estimates.
Unlike bigger rivals such as Facebook-owner Meta Platforms (NASDAQ:META), the Santa Monica-headquartered firm has failed to overcome a decline in digital advertising expenditure amid a time of tighter financial circumstances. Snap, which disclosed intentions to lay off 10% of its personnel earlier this week, warned that its operational climate has been “challenging.”
A procession of business results marches on later today, headlined by major names including media powerhouse Walt Disney (NYSE:DIS), ride-sharing firm Uber Technologies (NYSE:UBER), and chip designer Arm Holdings (NASDAQ:ARM).
ESPN, Fox, Warner Bros. Discovery announce new sports streaming venture
Walt Disney’s ESPN, Warner Bros Discovery (NASDAQ:WBD) and Fox have indicated they aim to link together to develop a new streaming service that will provide lucrative live sporting events.
The as-yet unnamed joint venture would package each group’s sports networks, certain direct-to-consumer sports services and sports rights, according to a statement from the businesses.
They added that the platform intends to give a “new and differentiated experience,” particularly to sports fans who are dumping pay-television for streaming choices. The firms emphasized that each one would possess an equal one-third part of the joint venture, adding that independent management would monitor the service. No price was announced.
Cord-cutting and weakening in pay-TV demand has gradually prompted media corporations to explore transferring their rich sports portfolios away from traditional — and pricey — cable packages.
“This new product […] will help prove out how many households that have cut the cord would like to subscribe to a sports-centric and lower priced bundle,” analysts at Morgan Stanley said in a note.
Moody’s downgrades New York Community Bancorp
New York Community Bancorp’s (NYSE:NYCB) long-term and certain short-term issuer ratings have been reduced to “junk” status by Moody’s, sending shares in the regional bank plummeting premarket on Wednesday.
The stock, which has already plunged by more than 50% since it revealed huge losses on real estate loans last week, struck its lowest level in almost two decades following the announcement.
Moody’s said the decision arose from difficulties linked to “financial, management and risk management” at NYCB, adding that the mid-sized lender did not have adequate reserves on hand to cover any loan losses. The bank has been under examination as well in the aftermath of the recent resignation of its top risk officer.
NYCB’s issues have threatened to revive worries over the vulnerability regional lenders have to a post-pandemic decrease in commercial property values. For its part, NYCB has claimed it is taking “decisive actions” to bolster its balance sheet and tighten risk management practices.
Economic Calendar
7:00 AM MBA Mortgage Applications Data
8:30 AM International Trade for December
10:30 AM Weekly DOE Inventory Data
11:00 AM Fed’s Kugler Speaks at Brookings Event
12:30 PM Fed’s Barkin Speaks on Outlook, Regional Economy
1:00 PM US Treasury to sell $37B in 10-year notes.
3:00 PM Consumer Credit for December
Other Key Events:
Oppenheimer 2024 Winter Healthcare CEO and Investor Summit, 2/5-2/8
China CPI, PPI for January
China M2 Money Supply
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