Stock Market Futures Drop Ahead Of Holiday-Shortened Trading Week
Stock market futures appear to be declining in the early morning trading today. In the four-day trading week ahead, investors will likely be watching key economic data. Most of which will be coming in on Wednesday and Thursday. To begin with, third-quarter GDP, consumer confidence, and existing home sales figures will be out on Wednesday. Following that, weekly jobless claims alongside several key consumer-focused indicators will be on deck on Thursday. Overall, investors may be considering their next play carefully given the immense volatility in stocks.
To help with that, Bank of America (NYSE: BAC) economist Michelle Mayer provided an overview of the stock market now. “The Fed’s forecasts are very supportive to the markets over the near term. Not only is the hiking cycle late, slow and shallow, the economy looks good. Core PCE inflation drops back to just 2.1% even as the unemployment rate drops to just 3.5% next year and remains there through 2024.” She also added, “Unfortunately, we think such a benign combination is highly unlikely … We are skeptical about their inflation forecast. We think they have not penciled in enough rate hikes. And we think even our forecast may be a bit too bullish. So enjoy the porridge while it is warm.” As of 5:30 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 1.18%, 1.32%, and 1.51% respectively.
Google’s YouTube TV Set To Restore Disney Channels Access After Two-Day Blackout
On the entertainment front, Alphabet’s (NASDAQ: GOOGL) YouTube is making headway. Namely, the company is now restoring access to channels from Disney (NYSE: DIS) on its YouTube TV platform. This would be thanks to both firms reaching a distribution agreement over the weekend, ending a two-day blackout. According to YouTube, channels such as ESPN and FX are already back up and running on its streaming platform. This comes at a time where YouTube is looking to reduce the price of its monthly subscriptions.
In detail, the company originally planned to reduce subscription fees by $15, bringing them down from $64.99 to $49.99. However, YouTube revealed on Sunday that the fee will remain at $64.99 with affected users receiving a one-time $15 discount. In theory, this would serve to benefit both YouTube and Disney as they leverage one another’s reach and content. With the Omicron Covid variant seemingly making the rounds now, having strong streaming offerings could be a plus point. Notably, the current move comes less than a month after YouTube struck a multi-year deal with Roku (NASDAQ: ROKU). Given all of this, I could see investors keeping an eye on the top entertainment stocks now.
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Nio Releases New ET5 Electric Sedan Among Other Nio Day Highlights
Elsewhere, Nio (NYSE: NIO) does not appear to be slowing down anytime soon. Evidently, the company is currently working on a slew of new electric vehicle (EV) related tech, based on its annual Nio Day event. On Saturday, the company revealed its second electric sedan, the ET5. According to CEO William Li, the company is looking to start deliveries for the ET5 by September 2022. Additionally, he also revealed Nio’s plans for a custom set of augmented reality (AR) glasses that work with the ET5. The likes of which would serve to minimize the need for drivers to look at dashboards. This would be the case as the AR headset overlays digital images over the real world.
More importantly, the new EV comes in at a pre-subsidy price point of about $51,250 for battery-powered models. If that wasn’t enough, Li also provided an update on the delivery schedule for Nio’s first electric sedan, the ET7. He notes that deliveries are set to begin on March 28, 2022. In terms of its growth plans, Nio seems to have big plans as well. The company is looking to expand its portfolio to Germany, the Netherlands, Sweden, and Denmark next year. In fact, it aims to cater to consumers in over 25 countries and regions by 2025. All in all, the company continues to press forward despite recent concerns weighing on Chinese stocks. Nevertheless, I could see NIO stock turning some heads in the stock market today.
Nike Earnings On Tap After Today’s Closing Bell
Among the hot names reporting earnings in the stock market today would be Nike (NYSE: NKE). With the retail titan set to host its latest earnings call today, investors would be eyeing NKE stock now. As it stands, consensus estimates sit at a revenue of $11.25 billion for the quarter on earnings per share of $0.63. Sure, these estimates would see Nike slow down from its year-ago quarter. However, investors are likely more keen on the company’s latest supply-chain update. This is particularly important as Nike’s production operations were hit hard by resurging coronavirus cases worldwide.
To point out, CFO Matthew Friend noted in Nike’s previous quarterly earnings that inventory is the key issue Nike faces. Nevertheless, analysts appear to be bullish on NKE stock at the moment. For starters, analysts over at UBS Group (NYSE: UBS) currently have a Buy rating on the stock with a price target of $185. This would suggest a potential upside of over 14% from its closing price of $161.36 at last week’s closing bell. The firm argues that “Vietnam factories likely opened sooner than what Nike assumed in its guidance and favorable pricing trends suggest potential gross margin upside.”
Moreover, Wells Fargo (NYSE: WFC) analyst Kate Fitzsimons also recently weighed in on NKE stock. The bank recently resumed coverage of Nike with an Equal Weight rating and a $175 price target. Similar to UBS’ analysts, Fitzsimons also sees Nike’s supply chain “recovering into early 2022”. While all that remains to be seen, NKE stock would be in focus in the stock market this week.
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Other Earnings To Note In The Stock Market Today
Aside from that, we also have several other notable firms posting their quarterly financials today. In the pre-market, the likes of Carnival (NYSE: CCL) and Blade Air Mobility (NASDAQ: BLDE) are on tap. On one hand, Carnival is a leading name in the international cruise industry. On the other hand, Blade offers a wide array of commercial and private flight services to consumers. Earnings figures from both firms could serve to provide more details on the current state of the travel industry.
Alternatively, those looking towards after-market hours have several names to consider as well. This includes but is not limited to Micron (NASDAQ: MU), Braze (NASDAQ: BRZE), and Calavo Growers (NASDAQ: CVGW). From economic data, partnerships, and product launches to earnings, investors have plenty to digest in the stock market this week.
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