DJIA Futures: -3 (-0.01%)
SPX Futures: +9 (+0.2%)
NASDAQ Futures: +72 (+0.6%)
Good morning friends!
Futures are mostly higher as Netflix shares boost the tech sector.
Let’s get right to it!
Netflix (NFLX) shares are jumping 6.2% ahead of the open after sharply beating Q4 subscriber growth expectations.
Here’s how the streaming giant’s results compared to analysts’ estimates:
The profit miss was largely due to a loss related to euro-denominated debt but the company’s 7% margins topped analysts’ expectations.
Netflix also announced founder Reed Hastings will step down as CEO.
Hastings will remain with the company as executive chairman and co-CEO Ted Sarandos will remain in his position.
Current COO Greg Peters will take over Hastings’ spot as co-CEO with Saranados.
Alphabet (GOOGL) shares are up 3.2% in premarket trade after announcing layoffs this morning.
The tech giant’s CEO Sundar Pichai sent an email to employees saying they plan to layoff 12,000 workers.
Pichai said layoffs in the U.S. will begin immediately but “will take longer due to local law and practices” in other countries.
U.S.-based employees will receive 16 weeks of severance pay plus two weeks for each additional year they’ve worked for Google.
The company is also delaying a portion of its annual employee bonus checks.
Google employees usually receive their full bonus in January.
But now, the tech giant is paying full-time employees 80% of their bonus this month and the remaining 20% in March or April.
Moving forward, full bonuses will be paid in March.
Nordstrom (JNW) shares are falling 6.9% ahead of the open after reporting weak holiday sales and slashing its guidance.
The retailer said net sales dropped 3.5% year over year in the nine-week holiday shopping period that ended December 31.
Nordstrom’s net sales fell 1.7% while Nordstrom Rack sales tumbled 7.6%.
Those weak sales caused the company to cut its earnings and margin expectations for the full fiscal year.
Nordstrom expects full-year revenue growth to be at the low end of its previously announced range of 5% to 7%.
The retailer expected adjusted EPS to range between $1.50 and $1.70 vs $2.30 to $2.60 previously.
CEO Erik Nordstrom said, “While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment.”
The company was also forced to mark down merchandise more than expected during the holiday season in order to clear excess inventory.
Nordstrom reports Q4 results on March 2.
The disappointing holiday results from Nordstrom are dragging down other retail stocks in premarket trade.
Macy’s (M) is down 2.6%, Kohl’s (KSS) is falling 3.5%, and Dillard’s (DDS) is down 1.3%.
The National Association of Realtors reports existing home sales for December at 10:00 a.m. ET.
That report is expected to show sales fell to a seasonally adjusted annual rate of 3.95 million units last month from 4.09 million in November.
That would be the 11th straight month of declining sales as the housing market has weakened due to higher mortgage rates.
Earnings season picks up steam next week with several key companies reporting. Here’s a look at the highlights:
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