Wall Street on Edge as Weekly Losses Loom


A wave of dismal earnings is weighing on stock futures

Stock futures are lower after a wave of dismal earnings reports, including one from Lyft (LYFT) that has the ridesharing name eyeing outsized losses. The earnings season has left a lot to be desired so far, with fewer companies beating estimates than the three-year historical average, per The Earnings Scout.

Futures on the Dow Jones Industrial Average (DJIA) are pacing for an 89-point drop, while both Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are firmly in the red. All three major indexes are on track for weekly losses, while the SPX is also pacing for its worst week since December.

Continue reading for more on today’s market, including:.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and 987,255 put contracts traded on Thursday. The single-session equity put/call ratio stayed at 0.63 and the 21-day moving average stayed at 0.80.
  2. Expedia Group Inc (NASDAQ:EXPE) stock is down 1.2% ahead of the open. The travel company’s fourth-quarter earnings and revenue missed analysts’ estimates, as severe winter weather led to a spike in canceled bookings. EXPE is down 40.2% year-over-year.
  3. Bank of America downgraded Deutsche Bank AG (NYSE:DB) to “underperform” from “neutral,” with the analyst in coverage noting other European banks look more attractive while Deutsche Bank relies on volume. DB is down 3% before the bell, and has dipped 23.8% in the last 12 months.

  4. The shares of Cloudflare Inc (NYSE:NET) are surging, last seen up 8.1% in premarket trading, after the company announced better-than-expected fourth-quarter results. At least 10 analysts have raised their price targets, including Needham to $77 from $70. So far in 2023, NET has already added 28.7%.

  5. Consumer sentiment data is due out today, alongside the Federal Budget balance.

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European Markets Dip on Prelim U.K. GDP Data

Japan’s Nikkei was the only winner amongst Asian markets on Friday, adding 0.3% as the yen strengthened against the U.S. dollar, amid news that Kazuo Ueda will be appointed the Bank of Japan’s (BoJ) next governor. Meanwhile, China’s consumer price index (CPI) came in at a lower-than-expected 2.1% year-over-year. China’s Shanghai Composite fell 0.3%, Hong Kong’s Hang Seng dropped 2%, and the South Korean Kospi shed 0.5%.

European markets are firmly lower midday. As investors muse over the U.S. Fed’s disinflation process, U.K. preliminary fourth-quarter GDP figures showed the economy narrowly avoided a recession. London’s FTSE 100 is down 0.7% at last glance, while the French CAC 40 and German DAX are off 1.5% and 1.7%, respectively.