Netflix falls after price cuts
Shares of Netflix were under pressure on Thursday after the Wall Street Journal reported that the company was cutting prices in over 30 countries.
The markets include countries in the Middle East, Africa, Latin America and Eastern Europe, according to the report.
Netflix confirmed that it is "updating" the price plans in some countries, a company spokesperson told CNBC.
The stock was down more than 4% on the day.
— Jesse Pound
Caution signals flashing in latest round of retail and restaurant reports
The latest batch of earnings reports from retailers and restaurants are showing some signs of caution ahead.
Domino's shares are down 9% after the pizza chain turned in a mixed quarter and cut its long-term growth forecast, citing macro-economic headwinds. It now sees global retail sales growth of 4%-8%, down from a prior forecast of 6%-10%.
Wayfair shares are down 18% after it posted a wider-than-expected loss, but the big takeaway is that sales for the quarter-to-date period are trending down 10%. The number of active customers and the number of orders per customer declined in the latest quarter, it said.
Steve Madden said it's seeing "conservative initial spring orders" as retailers manage inventories, but its stock is up nearly 7% in trading.
"SHOO is a high-quality business with a strong management team, and it was prudent for them to take a cautious initial view of guidance," Wedbush analyst Tom Nikic wrote in a research note. He attributed the stock's upward move to investors taking a "last cut" view of the forecast.
-Christina Cheddar Berk, Robert Hum
SVB Securities upgrades Teladoc shares
SVB Securities upgraded Teladoc to outperform from market perform Thursday, saying its bear thesis has been "fully reflected" in the shares and that a forward arc looks "achievable."
"While we expect shares will be down tomorrow, with TDOC's bear case largely playing out over the past year and a half, we believe the valuation will fully reflect the downside scenario—effectively, we are past the final overhang," CVB analyst Stephanie Davis said in a note.
"With estimates re-based to an achievable level and valuations near a trough, we believe TDOC shares can work by solely executing against its outlook," she added.
— Tanaya Macheel
Morgan Stanley upgrades Intel, says limited downside is ahead
Morgan Stanley upgraded Intel to equal weight from an underweight rating, saying that the stock's recent underperformance and dividend cut should mean limited downside is ahead.
"With material underperformance YTD and in late 2022, and this negative catalyst out of the way, we see balanced risk reward," wrote analyst Joseph Moore in a note to clients this week.
Moore called the more than 60% dividend cut the "right thing to do" long term to bring the yield more in check with its peers. Commentary from the company and slight capital expenditure cuts also signal that Intel is working toward a "more disciplined approach" to capital management, he added.
Intel shares in 2023
"Reducing the dividend to a more palatable ~2% dividend yield is both more in-line with the peer group and more supportive of the company's multi-year capital spending strategy, with $10's of billions of foundry spending still ahead of the next several years," Moore said.
Along with the upgrade, Morgan Stanley trimmed its price target to $28 from $29.50 a share, representing about 10% upside from Wednesday's close. Shares are down about 3% year to date after tumbling about 49% in 2022.
"While we are not yet out of the woods in terms of FCF pressures, the dividend cut does help to alleviate some of those concerns and points to a floor on valuation, which we feel we are nearing," he said.
— Samantha Subin
Goldman Sachs upgrades Nvidia, cites growing AI demand
Goldman Sachs upgraded shares of Nvidia to a buy from neutral rating on Thursday, citing growing artificial intelligence adoption.
Analyst Toshiya Hari added that "the combination of positive estimate revisions and a potential expansion in the stock's multiple - consistent with historical recovery phases - will drive continued outperformance in the stock."
Shares of Nvidia were last up nearly 13% before the bell on the heels of a slight fourth-quarter beat as AI chip demand increases.
Read more on the call from Goldman here.
— Samantha Subin
Lordstown Motors shares slide on production pause announcement
Shares of electric vehicle maker Lordstown Motors slid more than 8% in early morning trading after the company announced a production and delivery pause to address quality issues with certain Endurance components.
"While our experienced team has made significant progress in addressing the underlying component and vehicle sub-system issues affecting the Endurance build schedule, we remain committed to doing the right thing by our customers and to resolve potential issues before resuming production and customer shipments," said CEO Edward Hightower said in a statement Thursday.
Lordstown plans to give more details in its upcoming earnings call on March 6.
— Tanaya Macheel
Chip stocks rise on Nvidia results
Better-than-expected results from Nvidia boosted the chipmaker's stock by more than 13% and lifted shares of some of its competitors.
Nvidia on Wednesday posted a slight revenue beat due in part to demand for its AI chips. Shares were up almost 20% off their 52-week high of $289.46 on Mar. 29.
Shares of Advanced Micro Devices, Qualcomm and Micron Technology were last up about 4%, 1.3% and 2.7%, respectively.
Chip stocks pop on Nvidia earnings
— Samantha Subin
Stocks open higher on Thursday
Loop Capital initiates coverage of Walgreens Boots Alliance
Loop Capital initiated coverage of Walgreens Boots Alliance with a buy rating and $45 price target, suggesting shares could gain more than 20% from Wednesday's close.
"Over the past two years the company has also lowered its costs and assembled a portfolio of health care providers that we expect to strengthen WBA's core retail business and accelerate its growth and profitability by increasing its engagement with consumers," wrote analyst Joseph France.
Read more on the call from Loop Capital here.
— Samantha Subin
Dollar index hits highest level since Jan. 6
The dollar index briefly hit a high of 104.683, or its highest level since Jan. 6 when the index reached a high of 105.631.
The index is up 0.6% this week, heading for its fourth straight positive week for the first time since May 13, 2022.
Meanwhile, the euro fell to a low of 1.0584 against the dollar, which is the lowest level since Jan. 6 when the euro traded as low as 1.0482 against the dollar. The euro is 0.7% lower this week, on pace for its third negative week in four.
The dollar is up 0.6% this week against the yen, putting it on pace for its sixth straight positive week for the first time since Oct. 14, 2022.
— Gina Francolla, Sarah Min
Fourth-quarter growth in 2022 was less than initially projected
Economic growth wasn't as strong as originally thought as 2022 came to a close, the Commerce Department reported Thursday.
Gross domestic product increased 2.7% at an annualized pace in the fourth quarter, down from the initial 2.9% estimate. Economists surveyed by Dow Jones had not been expecting a change in the first revision.
The primary reason for the downward revision was that consumer spending, which drives about two-thirds of the economy, wasn't as strong as the initial estimate. Personal consumption expenditures increased just 1.4% for the quarter, weighed down by a decline in purchases of long-lasting goods such as appliances and autos.
Upward revisions to nonresidential fixed investment helped offset the downward changes to spending.
In other economic news, jobless claims edged lower to 192,000 for the week ended Feb. 18, the Labor Department reported. That was 3,000 less than the week before and slightly below the 197,000 Dow Jones estimate.
—Jeff Cox
Stocks making the biggest premarket moves
These are the stocks making the biggest moves in early morning trading.
- Lucid Motors — The electric vehicle maker saw shares slide 14% premarket after reporting that fourth-quarter revenue fell short of expectations. Bank of America downgraded the shares Thursday, citing near-term demand concern.
- Nvidia – Shares of the chip giant leaped more than 9% in early trading after Nvidia posted beats Wednesday on the top and bottom lines for its latest quarter. Wall Street praised Nvidia's results Thursday.
- Dollar General — Shares fell about 5% after Dollar General reported preliminary results for its fourth-quarter and fiscal year 2022 that were lower than prior guidance and weaker than consensus expectations from FactSet.
For more big movers check out our full list here.
— Tanaya Macheel
Bank of America downgrades Lucid Group
Bank of America downgraded shares of Lucid Group after the electric vehicle maker posted disappointing revenue for the fourth quarter and shared a weaker-than-expected production outlook.
Despite long-term confidence in the company, demand constraints should pressure shares in the near future, wrote analyst John Murphy.
"That said, we now expect it could take until 2027+ for LCID to break even on an operating and cash flow basis (prior 2026) and it will need to raise more capital sooner than we had expected," he said.
Lucid shares were last down more than 15% premarket.
Read more on the downgrade from Bank of America here.
Lucid shares fall on disappointing revenue
— Samantha Subin
2023 is a more micro-driven market, according to Goldman Sachs
The market has shifted this year, according to Goldman Sachs' trading desk, presenting opportunities for investors.
"Fears of recession and elevated interest rate volatility helped create a particularly macro-driven market for much of 2022," according to a Wednesday note from the firm's trading desk.
"But 2023 is shaping up to be a much more micro-driven market, presenting an opportunity for fundamental stock pickers and alpha generation as we move further and further into the post-pandemic, post-modern cycle."
The note highlighted the "importance of margins (over revenues) amidst higher interest rates, more expensive input costs (like commodities and labor), and high inflation."
— Hakyung Kim
Analysts cheer Nvidia's latest quarterly report
Wall Street analysts praise Nvidia's results, citing optimism around recent AI developments that can drive further gains for the chipmaker.
"NVDA's unique, turn-key model of chips, systems, software coupled with emerging inflection in generative AI/large language models positions NVDA solidly for large/profitable growth," wrote Bank of America's Vivek Arya in a Wednesday note to clients.
Check out CNBC Pro's full story for more analyst insight on Nvidia.
— Sam Subin
Bonds will dictate where stocks go in the medium term, Credit Suisse says
Credit Suisse technical analyst David Sneddon noted that, "For the equity market, the move higher in yields has certainly been a factor in the recent weakness, and should yields find a ceiling soon, that should reinforce the case for the S&P 500 to find a short-term floor at the key cluster of supports around 3984/26, with the market expected to trade in a broad medium-term range."
The benchmark 10-year Treasury yield has jumped more than 40 basis points to around 3.94% as traders anticipate more Fed rate hikes.
— Fred Imbert, Michael Bloom
CNBC Pro: Analyst says it's the 'last phase' of the bear market — and names 3 stocks to buy right now
Markets rallied at the start of the year. But on Tuesday, the main Wall Street indexes closed to cap their worst day of 2023.
James Demmert, chief investment officer at Main Street Research, says this is the "last phase" of the bear market and predicts when it will end.
He names three stocks to buy right now.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Rolls-Royce beats expectations with 57% profit hike in 2022
British aviation manufacturer Rolls-Royce sharply beat expectations with a 57% year-on-year increase in underlying profit, driven by its civil aerospace and power systems.
The company recorded £652 million ($786 million) of underlying profit last year, £238 million higher than in 2021 — exceeding analyst forecasts near £478 million, as polled by Reuters. Rolls-Royce's free cash flow from continuing operations added £2 billion on the year to £505 million in 2022.
The company attributed the results to recovering demand for international travel, noting a 35% year-on-year hike in large engine flying hours for civil aerospace. The aviation sector is recovering from the severe pressure suffered during the Covid-19 pandemic, when lockdowns and higher barriers to passenger entry choked international mobility.
Rolls-Royce said it will make no shareholder payments for the 2022 financial year, but pledged to return to an investment grade credit rating and resume the practice, without specifying a timeline.
Rolls-Royce share price.
The company is undergoing a transformation program to improve its performance in 2023, led by Tufan Erginbilgic — the former BP executive who succeeded Warren East in January. The program will include a strategic review, with Rolls-Royce set to announce its ensuing medium-term goals in the second half of this year.
The company projects "a continued recovery in our end markets" and further increases to returns in 2023, issuing operating profit guidance between £0.8 billion and £1 billion and a fresh cash flow outlook of £0.6 to £0.8 billion.
Rolls-Royce shares were up 15.87% at 8:24 a.m. London time, following the results announcement.
- Ruxandra Iordache
European markets open higher
Europe's Stoxx 600 was cautiously higher at the open, up 0.1%, with tech stocks leading gains.
The index posted losses in the previous two sessions.
Investors will be assessing yesterday's Fed minutes, amid fears the U.S. central bank will continue hiking rates weighing on markets, as well as a slew of earnings from companies including Rolls-Royce, Anglo American and BAE Systems to gauge the outlook for various sectors.
Stoxx 600.
— Jenni Reid
Stocks making the biggest moves after hours
These are the stocks making the biggest moves in extended trading:
- Nvidia – Shares of the chip giant leapt more than 7% after Nvidia posted beats on the top and bottom lines for its latest quarter.
- Lucid — The electric vehicle maker saw shares slide 9% in extended trading after reporting fourth-quarter revenue that fell short of expectations.
- Etsy — Shares of the e-commerce company jumped 5% after hours following the company's quarterly results.
For more big movers check out our full list here.
— Tanaya Macheel
Stock futures open higher
Futures tied to the major averages opened higher on Wednesday evening.
Dow Jones Industrial Average futures were up slightly by 21 points, or 0.06%. S&P 500 futures rose 0.26%, and Nasdaq 100 futures jumped 0.64%.
— Tanaya Macheel
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