GameStop, Delta, BlackRock: What to Watch When the Stock Market Opens Today
By Paul J. Davies
Here's what we're watching ahead of Thursday's opening bell.
-- S&P 500 futures gained 0.1%, potentially extending
Wednesday's advance, which lifted the index to its second-highest
level in history. Futures linked to the Dow Jones Industrial
Average added 0.3%. Read our full market wrap here.
-- Weekly new jobless claims showed another big rise, exceeding
forecasts amid accelerating Covid-19 cases and restrictions on
business. New claims were 965,000 in the week of Jan. 9, much
higher than the 800,000 forecast and ahead of last week's 784,000,
which was revised down slightly.
What's Coming Up
-- President-elect Joe Biden is due to give a speech outlining
the scale of his proposed spending package to support households
and businesses through the pandemic.
-- Progress Software will deliver its latest quarterly results
after the close.
Market Movers to Watch
-- GameStop shares surged 18% premarket, a day after its shares
closed more than 57% higher. Some analysts said Wednesday that the
stock's recovery had created a so-called short squeeze that drove
share prices sharply higher.
-- Tesla shares slipped 1.3% ahead of the bell. On Wednesday,
while Elon Musk was tweeting about sea shanties and Starship engine
tests, U.S. safety regulators demanded a recall of nearly 160,000
Tesla cars. Model S and Model X touch screens can fail after a few
years of use, affecting some safety functions.
-- Apache leapt 2.6% premarket after announcing a fourth oil
discovery in its offshore field near Suriname on the northeast
coast of South America.
-- BlackRock stock reversed earlier gains to fall 3.6% after the
money-management giant said fourth-quarter profits were up by
almost a fifth, which beat expectations.
-- Intel is posting more gains premarket, up 2.5%, after its 7%
jump on Wednesday. The chip maker booted Bob Swan out as chief
executive after activist hedge fund Third Point demanded changes.
He'll be replaced by Pat Gelsinger, chief at VMware.
-- KLA, a $45 billion industrial-electronics firm, is up 3.5%
premarket, extending a 12% rally since the start of 2021.
-- Delta Air Lines rose 2.8% premarket despite reporting a loss
for 2020 of $12.5 billion, its worst-ever year. Chief Executive Ed
Bastian said the pandemic was in its worst phase but he hoped to
see a recovery in air traffic this year. Delta expects to burn
through $10 million to $15 million cash a day in the first quarter,
but said it had plenty of funding.
Gasoline prices rose 8.4% in December, accounting for more than
60% of the overall increase in consumer prices for the month,
according to the Labor Department.
Chart of the Day
When lenders start reporting fourth-quarter earnings this week,
investors will want to know if they should expect another whiplash
kind of year.
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(END) Dow Jones Newswires
January 14, 2021 09:20 ET (14:20 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.