Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens

U.S. stock futures were trending lower on Friday as investors weighed the long-term impact of tough Western sanctions on Russia. Some analysts fear the sanctions, which seek to crimp Russia’s ability to do business, are not as strong as they ought to be.

Dow futures (DJIA) were down 0.65%, S&P futures (SPX) were down 0.67%, and Nasdaq futures (NDX) were down 0.67% at the time of writing.

However, U.S. reluctance to pour troops into Ukraine is helping provide some relief to the markets. Risk appetite bounced back overnight as major indices in the U.S. posted solid gains led by tech stocks.

Upcoming Earnings

Li Auto (LI), Immunogen (IMGN), Evergy (EVRG), Diana Shipping Inc. (DSX), Canadian Imperial Bank Of Commerce (CM), and Pinnacle West Capital Corp. (PNW) will report their quarterly results before the bell.

Market News

Carvana Co. (CVNA) has reached an agreement to acquire the U.S. physical auction business of ADESA for $2.2 billion in cash. The acquisition is expected to accelerate the company’s progress towards becoming the largest and most profitable automotive retailer. In addition, the company has delivered a wider-than-expected 4Q 2021 net loss of $1.02 a share against the Street’s loss estimates of $0.82 a share. Revenue in the quarter more than doubled to $3.75 billion, beating estimates of $3.52 billion.

Chevron Corporation’s (CVX) subsidiary Chevron U.S.A. has inked a strategic partnership with Iwatani Corporation America. The agreement is for the development of 30 hydrogen fuelling sites in California by 2026. Chevron is to fund the construction of the sites. Iwatani is tasked with operating and maintaining the hydrogen fuel sites.

Advanced Micro Devices, Inc.’s (AMD) board of directors has approved a new $8 billion share repurchase program. The program will add to a $4 billion share buyback plan announced in May of last year. The expansion of the buyback program affirms the strength of the company’s balance sheet and expectations for future free cash flow, according to Chief Executive Officer Lisa Su.

Alibaba (BABA) shares were flat after the Chinese internet giant delivered mixed quarterly results for the three months ended December 31, 2021. Revenue in the quarter was up 10% year-over-year to $38.01 billion, missing consensus estimates of $38.83 billion. Non-GAAP diluted earnings per ADS were down 23% year-over-year to $2.65 but higher than consensus estimates of $2.55.

Intuit (INTU) shares popped 6.45% despite the company delivering disappointing Fiscal Q2 2022 results and issuing full-year EPS guidance that missed estimates. Revenue in the quarter was up 70% year-over-year to $2.7 billion, missing consensus estimates of $2.74 billion. Non-GAAP earnings per share increased 128% year-over-year to $1.55, missing analyst estimates of $1.89.

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