BY THE NUMBERS
U.S. stock futures were relatively flat Tuesday, pointing to a second day of calm after last week's earnings-driven trading swings. The 10-year Treasury yield rose above 1.94% on Tuesday, a high not seen since January 2020 ahead of Thursday's key consumer inflation data. The Nasdaq, already in a correction, led Wall Street lower Monday, dropping nearly 0.6%. The S&P 500 lost almost 0.4%. The Dow Jones Industrial Average was virtually unchanged, edging up just over 1 point. (CNBC)
* Seven hikes? Rising wages could cause Fed to raise rates even higher (CNBC)
Pfizer (PFE) projects record-high revenue this year, saying Tuesday it expects to sell $32 billion of its Covid shots and $22 billion of its antiviral coronavirus treatment pill Paxlovid in 2022. However, Pfizer missed estimates with fourth-quarter revenue and the stock lost 3.5% in the premarket. Per-share earnings did exceed estimates. (CNBC)
* Oil giant BP reports highest profit in 8 years on soaring commodity prices (CNBC)
* Cathie Wood sells $142 million of Twitter shares ahead of earnings (CNBC Pro)
IN THE NEWS TODAY
Peloton (PTON) shares dropped more than 2% in Tuesday's premarket, way off earlier lows, after the embattled connected fitness company said it will replace co-founder John Foley as CEO with former Spotify and Netflix CFO Barry McCarthy. Foley will become executive chairman. Peloton also plans to slash 2,800 jobs or about 20% of corporate employees. (CNBC)
In addition, Peloton, which reports quarterly results Tuesday evening, cut full-year revenue and connected fitness subscriber guidance. Peloton on Monday closed up 20% on speculation that companies including Amazon and Nike may be interested in buy it. However, even including Monday's pop, the stock was down 80% from its February 2021 all-time high of $155.52. (CNBC)
Nvidia's (NVDA) planned acquisition of Arm from SoftBank has collapsed due to "significant regulatory challenges," the companies said in a joint release Tuesday. The deal was originally announced in 2020, with a value at the time of $40 billion in Nvidia stock and cash. SoftBank said Arm will now prepare for a public offering within the year ending March 31, 2023. (CNBC)
* Doomed from the start? Why Nvidia failed to buy Arm from SoftBank (CNBC)
Facebook parent Meta Platforms (FB) fell 1.4% in Tuesday's premarket, continuing a post-earnings slide that's sent the stock down 30% since quarterly results last Wednesday. Meta said on Monday billionaire tech investor Peter Thiel, an early Facebook backer, will step down from its board. (CNBC)
Digging through last Thursday's annual report, Meta said it's considering shutting down Facebook and Instagram in Europe if it can't keep transferring user data back to the U.S. Regulators in Europe are currently drawing up new legislation that will dictate how EU citizens' user data gets transferred across the Atlantic. (CNBC)
Under pressure to hit fourth-quarter sales goals while coping with widespread semiconductor shortages, Tesla (TSLA) decided to remove one of the two electronic control units that are normally included in the steering racks of some made-in-China Model 3 and Model Y cars, according to two employees and internal correspondence seen by CNBC.
* Tesla says SEC delivered another subpoena in conflict over Musk tweets (CNBC)
* Tesla braces for a possible race discrimination lawsuit from California’s civil rights agencyr (CNBC)
American Express (AXP), known for its array of perks-laden cards, is jumping into the highly competitive arena of digital checking accounts. The company on Tuesday launched Amex Rewards Checking to its U.S. customers. Any non-business card member in good standing is eligible for the no-fee, no minimum balance account. (CNBC)
President Joe Biden and German Chancellor Olaf Scholz had an awkward exchange with a reporter Monday at the White House over the future of Nord Stream 2. Biden said the natural gas pipeline between Russia and Germany won’t go forward if Russia invades Ukraine. But Scholz demurred. (CNBC)
The National Archives and Records Administration last month retrieved 15 boxes of White House records that had been sent to former President Donald Trump's resort-home Mar-a-Lago instead of the National Archives as required by law, the agency said Monday. (CNBC)
* Trump SPAC stock plunges after news spreads of delayed app launch (CNBC)
STOCKS TO WATCH
Novavax (NVAX) sank 6.7% in the premarket after Reuters reported that the drugmaker has delivered only a small fraction of the 2 billion Covid-19 vaccine doses it had planned to send around the world.
Harley-Davidson (HOG) surged 8.3% after the motorcycle maker reported an unexpected profit for its latest quarter as well as better-than-expected revenue. Harley earned 14 cents per share, compared to forecasts of a 38 cents per share loss, as demand jumped for its more expensive motorcycles.
Activist investor Legion Partners Asset Management is calling for the removal of Guess (GES) co-founders Paul and Maurice Marciano from the apparel maker's board, according to a letter seen by The Wall Street Journal. The firm argues that sexual misconduct allegations against Paul Marciano are threatening the company's turnaround efforts. Guess gained 1.4% in the premarket.
Take-Two Interactive (TTWO) fell 2.1% in premarket trading after it issued a weaker-than-expected outlook. The video game maker also missed estimates for "net bookings" for its most recent quarter, representing sales of products and services digitally and in stores.
Carrier Global (CARR) beat estimates by 5 cents a share, with quarterly earnings of 44 cents per share. Revenue also topped Wall Street forecasts. The maker of heating and cooling equipment added 1.3% in the premarket.
Chegg (CHGG) Rallied 5.8% in the premarket after the online education services company reported better-than-expected profit and revenue for its latest quarter. Chegg beat estimates by 4 cents a share, with quarterly profit of 38 cents per share. The company also issued a better-than-expected outlook.
Just Eat Takeaway (GRUB) will be delisting from the Nasdaq, with the Grubhub parent citing low Nasdaq trading volumes and a low proportion of the company's share value held on Nasdaq. The meal delivery service's stock will continue to trade on the Amsterdam and London stock exchanges. The stock fell 3.2% in premarket trading.