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Stock Market Today: Dow Jones, S&P 500 Rises; Peloton Skyrockets On Possible Takeover

The stock market opened higher ahead of yet another busy week of corporate earnings.

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.

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.

Source: TradingView

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By Amos C

Amos is the global markets correspondent for StockMarket.com. His boots on the ground insight into emerging markets has given him the unique ability to stay ahead of new market trends and deliver timely data when it matters most. Based in Asia, Amos has made a point to monitor the foreign markets closely, dissect stock market trends and then apply them to the North American markets; in addition to global markets.

Amos has a deep-rooted background in foreign exchange and commodities. His previous experience working within the cryptocurrency arena has given him the advantage to identify the fast-moving stock market and financial trends. Amos calls Hong Kong home and has been a financial content writer for the last 3 years.

He has managed teams of international media strategists and financial writers to cover all top stories in the stock market each day. His skills include his tireless drive to find the most valid information and actionable details that investors can use to formulate valid decisions on stocks to buy or stocks to avoid. Furthermore, Amos’ ability to cover trending stories across the globe brings StockMarket.com a fresh perspective on key data and how it not only affects the North American markets but also how it could translate to the world markets alike.

Most of the time you can find him diving into corporate filings, focusing on fundamentals that could influence major market moves. One of his passions is researching technology and biotechnology stocks. Some of the most cutting-edge innovations have stemmed from these industries. While many don’t become industry blockbusters, the processes and applications of these innovations has led to some of the biggest developments known to man in the modern age. As a global correspondent, Amos has been able to see both sides of the story as it relates to world news and offers a true, personal approach, cutting through the noise of the mass media. He was integral in reporting on the Hong Kong uprising and doing first-hand research on international sentiment from the novel coronavirus.

In his free time, Amos is an avid fan of music and art and enjoys attending concerts.

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