Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks higher after Nasdaq’s 3-day winning streak
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, January 12, 2022.
Brendan McDermid | Reuters
U.S. stock futures rose slightly Thursday after another hot but unsurprising inflation report. The Nasdaq edged higher Wednesday, led by tech stocks rebounding for a third straight session. The Dow Jones Industrial Average and the S&P 500 eked out gains for a second day in a row, with each ending Wednesday less than 1.5% away from last week’s record closes. The Nasdaq has more work to do to dig out from its recent slide, finishing Wednesday 5.4% away from its latest record close in November.
- Looking ahead, global alternative asset management firm TPG is set to debut on the Nasdaq on Thursday, the morning after pricing its initial public offering at $29.50 per share, the middle of the expected range.
- Moderna expects to report data by March from its Covid vaccine trials involving children aged 2 to 5. If the study is supportive, the company said it would then file for emergency approval for vaccinating that age group. Moderna shares were modestly lower in the premarket.
2. Delta Air Lines reports strong earnings, revenue; shares rise
Delta Air Lines airplanes at the Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, U.S., on Tuesday, Dec. 21, 2021.
Elijah Nouvelage | Bloomberg | Getty Images
Delta Air Lines shares rose more than 2% in the premarket after the carrier on Thursday posted its highest quarterly revenue since late 2019, a better-than-expected $9.47 billion in the fourth quarter. Earnings of 22 cents per share also beat estimates, thanks in part to strong holiday bookings and more business travel. Delta said it expects a first-quarter loss, blaming the Covid omicron variant for higher costs and weaker-than-expected bookings. However, the airline still sees a travel demand rebound further down the road and a profit this year.
3. More unsurprising hot inflation numbers; new jobless claims move higher
The Commerce Department said Thursday the December producer price index rose 9.7% year over year, slightly lower than estimates but still the largest increase on record. The PPI comes after December’s consumer price index rose 7% year over year at the quickest pace since June 1982 but in-line with estimates. The Labor Department said Thursday that weekly initial jobless claims rose to 230,000, more than expected and up 23,000 from the prior week’s unrevised level.