Daily Trade News

5 things to know before the stock market opens Thursday, Jan. 20


Here are the most important news, trends and analysis that investors need to start their trading day:

1. Stocks set to open higher after Nasdaq entered correction territory

Traders work on the floor at the New York Stock Exchange (NYSE) in New York.

Andrew Kelly | Reuters

U.S. stock futures bounced Thursday, one day after the Nasdaq finished in correction territory, down more than 10% from its record high close in November. Tech stocks have been under heavy pressure lately as rising bond yields make it more expensive for companies to borrow to fund growth. Ahead of the new trading day, the Dow Jones Industrial Average was riding a four-session losing streak and the S&P 500 has dropped three out of the last four days. The Dow and S&P 500, at the end of Wednesday’s trading, were down nearly 5% and almost 6%, respectively, from their record closes this month. Weekly initial jobless claims increased to 286,000 to the highest level since October. The latest reading was much higher than estimates and up 55,000 from the previous week’s revised level.

2. American, United see rough first quarter ahead due to Covid

Delta Airlines and an American Airlines planes taxi away from their gate ahead of the Thanksgiving holiday at Logan International Airport in Boston, Massachusetts, U.S., November 22, 2021.

Brian Snyder | Reuters

American Airlines shares rose 1% in the premarket after the carrier reported Thursday morning a fourth-quarter adjusted loss of $1.42 per share. Analysts had expected a bigger $1.48 per-share loss. Revenue of $9.43 billion was also better than estimates. For the first quarter, as Covid cases spike, American expects revenue to be off up to 22% from the same period of 2019 when it generated $10.6 billion in sales.

A United Airlines passenger airplane is landing on Newark Liberty International Airport in Newark, New Jersey, on January 19, 2022.

Tayfun Coskun | Anadolu Agency | Getty Images

After the bell Wednesday, United Airlines delivered a narrower-than-expected adjusted loss of $1.60 per share for the fourth quarter. Revenue of $8.19 billion was also better than expected, thanks to strong holiday bookings. While a surge in Covid cases due to the omicron variant hurt bookings in the near term, the carrier sees a stronger spring and summer. United shares were modestly lower in the premarket.

3. Netflix usually beats on Q4 earnings but maybe not this time

The Netflix logo is seen on their office in Hollywood, California.

Lucy Nicholson | Reuters

Shares of Netflix, down 26% from their all-time high in November, rose nearly 1% in Thursday’s premarket. The video streaming giant is set report quarterly results after the bell. According to FactSet, Netflix is expected to earn 83 cents per share in the fourth quarter, when big movies like “Don’t Look Up” were released. The company is projected to continue to benefit from the international sensation series “Squid Game,” which was released Sept. 17. Revenue in Q4 is seen rising roughly 16% to $7.71 billion….



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