The Takeaway: Stocks performed a rally to start the week. On Thursday, stocks opened lower, with investors hitting the sell button after worse-than-expected earnings from Meta Platforms, formerly known as Facebook ($FB).
However, a Thursday dive in the market was temporary. Stocks rebounded Friday. While the final few hours of trading for the week saw some selloffs, investors are more positive in early February than they were in January, which was one of the worst market months since March 2020.
What’s Hot: The news that Google parent Alphabet ($GOOG) will split its stock was well-received by the market. Many smaller investors likely see Alphabet’s four-digit price and think it’s too expensive. Amazon ($AMZN) saw a huge gain from great earnings numbers. And despite recall woes for its cars investors still like what Tesla ($TSLA) CEO Elon Musk is saying, including building a robot as a core focus for 2022. A crash in Netflix’s ($NFLX) stock two weeks ago is showing nice recovering as CEO Reed Hasting buys more shares and the company announces the release of 22 live-action films this year.
What’s Not: It was a bad week for Facebook parent Meta Platforms ($FB) as its stock tanked double-digits on poor earnings numbers. A botched cryptocurrency project as well as metaverse confusion made some hit the sell button. Payments provider PayPal ($PYPL) dumped on missed earnings and a poor forecast. Despite beating forecasts, biotech company Gilead Science ($GILD) as investors displayed concern about the firm’s pipeline of products. And chemical company Linde PLC ($LIN) saw some profit taking after a 52-week high in January.
What to Watch For:
- Spotify’s ($SPOT) controversy regarding podcast host Joe Rogan may not go away anytime soon. Rogan, who signed a $100 million with the streamer, has had views and guests that don’t espouse mainstream views on the pandemic.
- The United States’ national debt was updated by the Treasury last week, and with COVID-19 era spending, it’s spiraling out of control. Revenue producing measures such as increased taxation could be one solution to the problem.
- Meta Platforms’ ($FB) focus on video for 2022 is likely an attempt to retake lost gains after a less-than-stellar earnings report. The company could deploy this strategy across several brands, including Instagram, WhatsApp and Oculus.
- Google’s announced 20-1 stock split still needs approval from shareholders in July, meaning it will be some time before it happens, if it does. Nevertheless, expect Alphabet, Inc. ($GOOG) to ride the wave of populism for its stock while it can.
- Oil prices have hit $90, and analysts are expecting the price to surpass $100 sometime this year. As warmer weather appears in the northern hemisphere in the coming months, demand for gasoline will likely cause crude to crest over that amount soon.
Dividends: Companies expected to boosting quarterly dividend payouts: Nathan’s Famous ($NATH) from $0.35 to $0.45, Trane Technologies ($TT) from $0.59 to $0.67, Banco Santander Brasil ($BSBR) from $0.0118 to $0.0578, Boyd Gaming ($BYD) from $0.07 to $0.15, Quest Diagnostics ($DGX) from $0.62 to $0.66, Cigna ($CI) from $1.00 to $1.12, Activision Blizzard ($ATVI) from $0.34 to $0.47, Bath & Body Works ($BBWI) from $0.15 to $0.20.
Earnings This Week:
Monday (2/7) – Tyson Foods, Inc. ($TSN), Energizer Holdings, Inc. ($ENR), Hasbro, Inc.($HAS), Amgen, Inc. ($AMGN), Nuance Communications, Inc. ($NUAN), Take Two Interactive ($TTWO)
Tuesday (2/8) – Plantronics, Inc. ($POLY), Harley-Davidson, Inc. ($HOG), NCR Corporation ($NCR), Chipotle Mexican Grill, Inc. ($CMG), Virtu Financial, Inc. ($VIRT), New Relic, Inc. ($NEWR), Lyft, Inc. ($LYFT), Peloton Interactive, Inc. ($PTON), Warner Music Group Corp. ($WMG), Pfizer Inc. ($PFE)
Wednesday (2/9) – Mattel, Inc. ($MAT), Motorola Solutions, Inc. ($MSI), Equifax Inc. ($EFX), The Walt Disney Company ($DIS), MGM Resorts International ($MGM), iRobot Corporation ($IRBT), Sonos, Inc. ($SONO), Twilio Inc. ($TWLO), Vimeo, Inc. ($VMEO), Wynn Resorts, Limited ($WYNN), Yum! Brands, Inc. ($YUM), CVS Health Corporation ($CVS), Uber Technologies, Inc. ($UBER)
Thursday (2/10) – The Coca-Cola Company ($KO), PepsiCo, Inc. ($PEP), Kellogg Company ($K), Shutterstock, Inc. ($SSTK), Twitter, Inc. ($TWTR), VeriSign, Inc ($VRSN), The Western Union Company ($WU), Affirm Holdings, Inc. ($AFRM), GoDaddy Inc. ($GDDY)
Friday (2/11) – Under Armour, Inc. ($UA), Allied Healthcare Products, Inc. ($AHPI), The Goodyear Tire & Rubber Company ($GT), Krispy Kreme, Inc. ($DNUT), Groupon, Inc. ($GRPN)