Stock Market Today Mid-Morning Updates

On Monday, the Dow Jones Industrial Average is up by 40 points. The markets are opening this week to another round of corporate earnings and fresh economic data. This follows Friday’s recovery, where tech stocks were able to bounce on Amazon’s (NASDAQ: AMZN) strong quarterly earnings report. Notable names to note for this week’s earnings would be Pfizer (NYSE: PFE), Disney (NYSE: DIS), and Uber (NYSE: UBER). 

Investors are also eagerly waiting for this week’s Consumer Price Index (CPI) that will be out on Thursday. The CPI report will help market participants determine the next move from the Federal Reserve as it tried to curb rising inflation. Currently, consensus estimates are looking for the CPI to rise by 7.2% on an annual basis for January, marking one of the fastest rise in prices since 1982. On the airline front, Spirit Airlines (NYSE: SAVE) and Frontier Group (NASDAQ: ULCC) announced a definitive merger to create one of America’s most competitive ultra-low fare airlines. The combined airlines will offer over 1,000 daily flights to over 145 destinations while saving $1 billion in annual consumer savings.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up 0.67% today while Microsoft(NASDAQ: MSFT) is down by 0.15%. 3M (NYSE: MMM) and Nike (NYSE: NKE) ticked lower on Monday as well. Among the Dow financial leaders, Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading mixed today.

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 2.04% on Monday. Rival EV companies like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are also up by 2.87% and 2.21% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened higher at 2.00% and 0.027% respectively.

Dow Jones Today: 10-Year Treasury Yield Continues To Hover Above 1.9%

Following the stock market opening on Monday, the S&P 500, Dow, and Nasdaq are trading 0.21%, 0.13%, and 0.28% higher. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up 0.62% on Monday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.22%. 

Today, the 10-year Treasury yield ticked lower on Monday, but is still above 1.9% on Friday morning after Friday’s jobs report showed strong gains last month. In detail, the Labor Department released its January jobs report last Friday. Non-farm payrolls jumped to 467,000 vs the 125,000 consensus estimate and a revised 510,000 in December 2021. 

On the data front today, consumer credit data will be released at 3:00 p.m. ET. Auctions are scheduled to be held for $60 billion of 13-week bills and $51 billion of 26-week bills. Bitcoin continues to hover above the $40,000 mark after rallying last Friday. Also, U.S. oil prices traded downside as West Texas Intermediate crude traded below $92 a barrel after topping $93 a barrel last week.

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Peloton Riding Into The Spotlight Today As Acquisition Mentions Rise

In the news today is Peloton Interactive (NASDAQ: PTON). While the company’s second-quarter earnings report is only due tomorrow, investors are already piling on to the company’s shares. So much so that PTON stock is currently soaring by an impressive 27% today. Despite all of this, it is important to note that Peloton’s business is currently facing some notable headwinds. This mainly boils down to several key factors such as safety concerns, supply chain bottlenecks, and manufacturing slowdowns. With its market cap hovering around the $10 billion mark, mentions of potential companies interested in an acquisition are increasing.

To begin with, sources from CNBC reported earlier today that Amazon and Nike are likely buyers. According to CNBC, these reports note that Peloton has yet to begin any official sales processes. For one thing, this update comes at a rather interesting timing, to say the least. Namely, all this is happening while activist firm Blackwells Capital is currently urging the firm to sell itself as well. In practice, both Amazon and Nike would each benefit from such a deal. Firstly, Amazon would have a means to significantly boost its Amazon Prime Exercise & Fitness division. Secondly, Nike’s industry-leading portfolio of sports apparel would synergize well with Peloton’s business.

At the same time, Wedbush analyst Dan Ives sees Apple as another strong contender on this front. Ives explains, “On the offensive front, Apple through its Fitness+ subscription service and Apple Watch strategy would be able to leverage the Peloton services and flywheel to significantly bulk up its healthcare initiatives which have been a key strategic linchpin for Cook.” All in all, it makes sense that investors are eyeing PTON stock now with all these big names being mentioned.

PTON stock
Source: TradingView

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Alibaba Shares Dip As News Of Potential Share Dilution Emerges

Alibaba (NYSE: BABA) appears to be in the hot seat today after news of its latest SEC filing broke. Going into the details, the company recently filed for a F-6EF form. Essentially, this means that Alibaba is filing for additional American Depositary Receipts or ADRs. In fact, the Chinese e-commerce giant is adding a massive 1 billion ADRs to its outstanding total of about 2.71 ADRs. As a result of all this, BABA stock is currently trading lower by 5.50% as of today’s opening bell. Now, at face value, most would likely assume that Alibaba is looking to dilute its shares. However, some are arguing that there are greater concerns at the moment.

More importantly, analysts over at Citi (NYSE: C) are now suggesting that Japan’s Softbank is looking to sell. The firm posits that Softbank could either be looking to sell off some or all of its 25% stake in the company. Notably, this argument comes as SoftBank is looking to bolster its portfolios amidst the recent downturn in tech stocks. While it remains to be seen what the real purpose of this move by management, BABA stock will likely remain in focus.

BABA stock
Source: TradingView

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