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

U.S. stock futures were trending lower on Thursday as investors reacted to Russia turning a diplomatic crisis into war by invading Ukraine. A sell-off has gripped the market as investors try to assess the full extent of Putin’s intentions.

Dow futures (DJIA) were down 2.14%, S&P futures (SPX) were down 2.18%, and Nasdaq futures (NDX) were down 2.79% at the time of writing.

Investors are also grappling with the prospect of monetary policy tightening by the U.S. Federal Reserve amid the growing need to combat runaway inflation. However, expectations of a 50 basis point hike in March seem to have eased, for now. With equities under pressure, commodity prices led by oil and gold spiked, raising further concerns about inflation and the risks to a fragile global economy hurt by the pandemic over the past year.

Upcoming Earnings

Alibaba (BABA), Ambev SA (ABEV), and Dish Network Corp. (DISH) are poised to report their quarterly results before the bell. Occidental Petroleum (OXY), Kura Oncology (KURA), and Icf International (ICFI) will report after the bell.

Market News

In M&A news, Cloudflare, Inc. (NET) has inked a deal to acquire cybersecurity firm Area 1 Security for $162 million. The transaction is expected to close in the second quarter of 2022. The acquisition should enhance the company’s prospects in blocking phishing campaigns in emails. The company hopes to deliver the fastest and most effective email security once the transaction closes.

Twitter, Inc. (TWTR) is tapping the debt market as it looks to raise capital to finance working capital and potential acquisitions as well as repurchase common shares. The social networking giant plans to offer $1 billion worth of senior notes due in 2030 and payable semi-annually.

Thermo Fisher Scientific Inc. (TMO) has announced a 15.4% increase of its quarterly dividend to $0.30 a share. The new dividend is to be paid on April 14, 2022, to shareholders of record as of March 16, 2022. The annual dividend currently stands at $1.20 a share, representing a dividend yield of 0.2%. The Scientific instrumentation and software services provider has been raising its dividend over the past four years.

Shares of Bath & Body Works, Inc. (BBWI) fell 3.4% in extended trading hours despite the specialty retailer delivering solid fourth-quarter 2021 results. Adjusted earnings in the quarter were up 17% year-over-year to $2.30 a share, exceeding consensus estimates of $2.01. Net sales climbed 11% year-over-year to $3.03 billion, beating consensus estimates of $2.65 billion.

Meanwhile, eBay Inc. (EBAY) shares fell 7.8% despite the e-commerce giant delivering better-than-expected fourth-quarter 2021 results. Quarterly revenue was up 5% year-over-year to $2.61 billion, in line with consensus estimates. Quarterly earnings increased 24% year-over-year to $1.05, outpacing consensus estimates of $0.99 a share.

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