Coffee With Greta: Twitter Talks With Musk
Editor's Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here.
********
DJIA Futures: -218 (-0.7%)
SPX Futures: -30 (-0.7%)
NASDAQ Futures: -81 (-0.6%)
Good morning friends!
Futures are lower as traders gear up for a huge week of earnings.
Let’s get right to it!
Twitter Talks With Musk
Twitter (TWTR) shares are up 4.7% ahead of the open following reports the social media giant could reach a buyout deal with Elon Musk as early as today.
The board of directors reportedly met Sunday to discuss Musk’s $46.5 billion tender offer.
The New York Times reported those talks with Musk continued into the early hours of today.
Twitter has declined to comment on the reports.
Coca-Cola Tops Q1 Expectations
Coca-Cola (KO) shares are up 1.8% in premarket trade after beating Q1 expectations.
The beverage maker reported adjusted earnings of $0.64 on $10.5 billion in revenue.
That topped analysts’ expectations for adjusted EPS of $0.58 on $9.83 billion in revenue.
Revenue was up 16% year-over-year.
Coke said halting its business in Russia will dent revenue and operating income by 1% to 2% this year.
The company reiterated its full-year outlook for revenue growth between 7% to 8% and comparable EPS growth between 5% to 6%.
Activision Blizzard Falls Short in Q1
Activision Blizzard (ATVI) shares are slipping 0.4% ahead of the open after missing Q1 expectations.
The video game company reported adjusted earnings of $0.64 per share on $1.77 billion in revenue.
That was lower than analysts’ estimates for adjusted EPS of $0.71 on $1.82 billion in revenue.
Activision blamed the miss on lower demand for its “Call of Duty” game franchise as gamers return to pre-pandemic habits.
The company did not provide guidance as Microsoft’s (MSFT) acquisition is pending.
That $69 billion deal is expected to close by June 30, 2023.
It’s been approved by both company boards but is still awaiting regulatory approval.
Oil Prices Tumble on Demand Fears
Oil prices are falling today as Covid lockdowns continue in Shanghai, China.
West Texas Intermediate crude futures are down 4.8% to $97 bbl while Brent crude futures are falling 4.8% to $101 bbl.
Authorities in Shanghai put up fences around residential buildings as the recent Covid outbreak continues.
A few cases have also been identified in Beijing, prompting fears of an impending lockdown in that city.
China’s zero-Covid policy threatens demand levels for oil as China is the largest crude importer in the world.
Treasury Yields Slump on Global Growth Fears
U.S. Treasury yields are also falling on concerns surrounding those Covid measures in China.
The 10-year Treasury yield is down 10 basis points to 2.82%, the 2-year yield is down 10 basis points to 2.6%, and the 30-year yield is down 5 basis poits to 2.89%.
Yields spiked last week in anticipation of aggressive action from the Fed to tackle inflation.
But the Covid outbreaks in China are now prompting fears of a slowdown in global economic growth this year.
Big Earnings Reports Ahead
The market is preparing for a rush of huge Q1 earnings reports this week.
Here are the highlights:
Tuesday AM: Pepsico (PEP), UPS (UPS), General Electric (GE), and JetBlue (JBLU)
Tuesday PM: Microsoft (MSFT), Alphabet (GOOG, GOOGL), and General Motors (GM)
Wednesday AM: Boeing (BA) and Spotify (SPOT)
Wednesday PM: Meta Platforms (FB), Paypal (PYPL), Qualcomm (QCOM), Ford (F), Teladoc (TDOC), and Pinterest (PINS)
Thursday AM: Twitter (TWTR), Caterpillar (CAT) and Southwest Airlines (LUV)
Thursday PM: Apple (AAPL), Amazon (AMZN), Intel (INTC), Roku (ROKU), and Robinhood (HOOD)
Friday AM: Exxon Mobil (XOM) and Chevron (CVX)
In Case You Missed It
Bed Bath & Beyond (BBBY) shares popped after-hours on Friday after a report on buyer interest for its Buybuy Baby Unit. The Wall Street Journal reported the interested parties are private-equity firm Cerberus Capital Management LP and Tailwind Acquisition Corp. Bed Bath & Beyond has been facing pressure to sell off the baby retailer and take the rest of its business private. BBBY shares are down 4.7% ahead of the open.