Finance

Check out the companies making headlines before the bell:
Darden Restaurants (DRI) – The parent of Olive Garden and other restaurant chains reported quarterly earnings of $1.93 per share, missing the $2.10 consensus estimate, with revenue and comparable-store sales also below analyst forecasts. Darden said the omicron variant significantly impacted guest demand, staffing levels and costs in January, but the environment subsequently improved. Darden fell 1.7% in the premarket.

KB Home (KBH) – KB Home missed estimates by 9 cents with quarterly earnings of $1.47 per share, and the home builder’s revenue also missed Wall Street forecasts. KB Home said it was dealing with supply and labor issues that hampered its ability to complete home construction. KB Home shares lost 3.6% in premarket trading.
Spotify Technology (SPOT) – Spotify shares jumped 3.7% in the premarket after it reached an agreement with Alphabet’s (GOOGL) Google that lets subscribers sign up for the service directly through the Google Play store. Dating services operator Match Group (MTCH) – another company that has sparred with Google over app store fees – rallied 3.4% following the Spotify news.
Nikola (NKLA) – Nikola soared 15.1% in premarket action after announcing electric truck production began at its Coolidge, Arizona, factory last week, meeting a goal that had been articulated during its most recent quarterly earnings report last month.
GameStop (GME) – GameStop remains on watch after the videogame retailer’s stock surged 14.5% Wednesday, marking a seventh straight day of gains after Chairman Ryan Cohen bought 100,000 more shares and raised his stake to 11.9%. GameStop slid 5.2% in premarket trading.
FactSet (FDS) – The financial information provider reported an adjusted quarterly profit of $3.27 per share, compared with a consensus estimate of $2.98. Revenue also topped Wall Street predictions and FactSet issued an upbeat forecast.

Trip.com (TCOM) – Trip.com jumped 6.2% in the premarket after the China-based travel services provider reported an unexpected profit for its latest quarter and revenue that exceeded analyst forecasts.
H.B. Fuller (FUL) – The industrial adhesives and specialty chemicals maker rallied 5.7% in the premarket after reporting better-than-expected profit and revenue for the quarter, and raising its full-year forecast. Fuller said it implemented price increases to deal with higher raw materials and logistics costs and is prepared to do so again, if necessary.
Steelcase (SCS) – The office furniture maker reported an unexpected loss for its latest quarter, although revenue exceeded analyst estimates. Steelcase said its results were impacted by supply chain disruptions and inflationary pressures. It also issued a weaker-than-expected forecast, and its shares fell 5.4% in premarket trading.
Logitech (LOGI) – The maker of keyboards, mice and other computer peripherals added 3.5% in the premarket after Bank of America Securities began coverage with a “buy” rating. BofA said the stock is at an attractive entry point given Logitech’s growth prospects and strong record of execution.

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Check out the companies making headlines before the bell:
General Mills (GIS) – General Mills gained 1.6% in the premarket after reporting better-than-expected quarterly earnings and raising its full-year outlook. The food maker earned an adjusted 84 cents per share, 6 cents above estimates, with revenue essentially in line with analyst forecasts. General Mills said demand for food at home continues to be elevated.

Winnebago (WGO) – The recreational vehicle maker reported adjusted quarterly earnings of $3.14 per share, beating the $2.94 consensus estimate, and revenue also topped Street forecasts. Results were helped by strong consumer demand and higher prices. However, Winnebago shares lost 2.4% in premarket action.
GameStop (GME) – GameStop soared 12.4% in premarket trading after an SEC filing showed that Chairman Ryan Cohen had bought 100,000 additional shares, raising his stake in the videogame retailer to 11.9%.
Adobe (ADBE) – Adobe beat estimates by 3 cents with adjusted quarterly earnings of $3.37 per share. The software maker’s revenue was slightly above estimates. However, Adobe cut its forecast for a key subscription revenue measure, expecting a $75 million hit for existing business in Russia and Belarus. Adobe slid 2.7% in the premarket.
Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), Sundial Growers (SNDL) – U.S.-listed marijuana stocks jumped in the premarket following news of two takeover deals in the industry. Cresco Labs is buying Columbia Care for $2 billion in stock, while Aurora Cannabis is acquiring Thrive Cannabis parent TerraFarma for C$38 million in cash and stock plus certain incentives. Tilray jumped 10.9% in the premarket, with Canopy Growth up 4%, Aurora Cannabis rallying 7.6% and Sundial surging 8.6%.
Okta (OKTA) – Okta said a preliminary investigation found no evidence of ongoing malicious activity, following news of a hacker breach. The digital authentication company said up to 366 customers may have been impacted by the breach, but noted hackers gained only limited access. Okta dropped 3.6% in premarket action.

Nielsen Holdings (NLSN) – Private equity firms Brookfield Asset Management and Elliott Investment Management are considering raising their offer for Nielsen, according to people familiar with the matter who spoke to Bloomberg. Nielsen had rejected a prior offer of $25.40 per share, saying it undervalued the company.
Poshmark (POSH) – Poshmark slid 9.4% in the premarket after the operator of a new and used clothing marketplace gave weaker-than-expected guidance for the current quarter. Poshmark reported better-than-expected revenue for its most recent quarter, along with a slightly smaller-than-expected loss.
Correction: Aurora Cannabis is purchasing TerraFarma in a C$38 million cash-and-stock deal, with additional amounts payable on contingent. An earlier version of the story gave the incorrect purchase amount.

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The General Mills logo is displayed on a box of Raisin Nut Bran cereal at Scotty’s Market on September 20, 2017 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images

Check out the companies making headlines in midday trading.
Adobe — Shares for the computer software company tumbled 9.3%. Adobe beat earnings, but reported a weak outlook. The company expects a $75 million hit to its business from the Russia-Ukraine conflict. In the first quarter, Adobe beat estimates by 3 cents, reporting adjusted quarterly earnings of $3.37 per share.

General Mills — The food company’s stock price jumped 2.5%. General Mills reported better-than-expected quarterly earnings and raised its full-year outlook. The firm earned an adjusted 84 cents per share, 6 cents more than consensus estimates.
Poshmark — Shares of the online clothing marketplace rose 2.5% a day after the firm reported a slightly smaller-than-expected loss and beat on revenue in the recent quarter. Poshmark also reported weaker-than-expected guidance for the current quarter, which led shares to initially slide.
Winnebago — Shares for the recreational vehicle maker plummeted 11.8%. Winnebago reported adjusted quarterly earnings of $3.14 per share, beating consensus estimates of $2.94 from analysts.
GameStop — The meme stock skyrocketed 14.5% Wednesday after GameStop Chair Ryan Cohen on Tuesday bought an additional 100,000 shares. Cohen’s stake in the video game retailer expanded to 11.9%.
Tilray Brands, Aurora Cannabis — Cannabis stocks jumped after two major acquisitions were reported in the industry. Cresco Labs will acquire Columbia Care in a $2 billion deal, according to Reuters. Aurora Cannabis said it is purchasing TerraFarma in a C$38 million cash-and-stock deal. Tilray spiked 3.5%, and Aurora Cannabis jumped 1%.

Okta — Shares of Okta fell more than 10.7% a day after the digital authentication company said it found no evidence of ongoing malicious activity following a hacker breach that affected 366 customers. Okta said hackers gained only limited access.
Boeing — The aerospace stock lost 2.6% on Wednesday, mostly erasing Tuesday’s rebound, as investors continued to monitor the investigation of a plane crash in China. One of the two black boxes from the flight, which could reveal the reason for the crash, has been found, according to Chinese state media.
Mosaic Company — Shares for Mosaic Company popped 3.4%. The fertilizer stock continues to enjoy popularity among investors who see huge gains ahead for the company following any shortages from Russia-Ukraine conflict.
— CNBC’s Tanaya Macheel, Jesse Pound and Samantha Subin contributed reporting.
Correction: Aurora Cannabis is purchasing TerraFarma in a C$38 million cash-and-stock deal, with additional amounts payable on contingent. An earlier version of the story gave the incorrect purchase amount.

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New Home Construction by KB Home in California
Bloomberg | Getty Images

Check out the stocks making headlines in extended trading on Wednesday.
KB Home — Shares for the homebuilding company slipped 4.3% after reporting an earnings miss. KB Home reported $1.47 earnings per share, missing the $1.56 consensus estimate by 9 cents. The company reported $1.4 billion in revenues, missing consensus estimates of $1.5 billion.

GameStop — The meme stock dipped 1.1% after hours. The video game retailer’s stock price soared during the regular trading session, following Tuesday’s report that GameStop Chair Ryan Cohen on Tuesday bought an additional 100,000 shares. Cohen expanded his stake to 11.9% in the video game retailer.
Spotify — Shares for the streaming company popped 6% following reports that Google will reduce app commission fees for Android developers, starting with Spotify.

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NurPhoto | NurPhoto | Getty Images

GameStop chairman Ryan Cohen just bought another 100,000 shares of the video game retailer, bringing his ownership to 11.9% as the activist investor tries to push the company into e-commerce.
The meme stock jumped more than 14% Wednesday, bringing its week-to-date gains to over 55%.

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Cohen purchased these shares through his investment company RC Ventures at a cost as low as $96.81 and as high as $108.82 apiece, according to a regulatory filing. Now he owns a total of 9,101,000 GameStop shares.
Cohen cofounded pet-supply retailer Chewy and managed to turn it into a booming business. The investor was tapped by GameStop early last year to serve as chairman of a special committee formed by its board to help its transformation.
Soon after his appointment, GameStop experienced a jaw-dropping short squeeze that sent shockwaves across Wall Street. A band of retail investors came together in online chatrooms, encouraging one another to pile into GameStop’s stock and call options to squeeze out short sellers. The stock ended 2021 up more than 680%.
Just two weeks ago, Cohen revealed a big stake in Bed Bath & Beyond and pushed for a turnaround. He wrote a letter to the company board, saying the housewares retailer is struggling to reverse market share losses and navigate supply chain woes.

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The average bonus paid to securities industry employees in New York climbed 20% to a record $257,500 for last year, according to state comptroller Thomas DiNapoli.
The projection, released Wednesday in the annual report from New York’s top fiscal officer, includes cash bonuses for 2021 work as well as deferred awards paid out recently, according to DiNapoli.
The fact that Wall Street pay came in higher than New York had projected “should help the city exceed its expected revenue from income taxes,” according to the report.

People walk along Wall Street in the financial district of Manhattan on September 29, 2021 in New York City.
Spencer Platt | Getty Images

The average bonus paid to securities industry employees in New York climbed 20% to a record $257,500 for last year, according to state comptroller Thomas DiNapoli.
The projection, released Wednesday in the annual report from New York’s top fiscal officer, includes cash bonuses for 2021 work as well as deferred awards paid out recently, according to DiNapoli.

The higher compensation figures aren’t unexpected: Wall Street firms including Goldman Sachs and JPMorgan Chase posted eye-popping revenue increases in January, fueled by booming mergers, public listings and strong trading activity. In November, pay consultants said they expected banks to post the largest increase in bonuses since 2009.
But DiNapoli’s report highlights the outsized role Wall Street employees have in New York’s financial health. Securities industry jobs make up just 5% of private sector roles, but accounted for 18%, or $14.9 billion, of state tax collections in the 2021 fiscal year, he said.
That’s because Wall Street workers make almost five times the $92,315 average salary in the private sector excluding finance, according to the report. Securities workers saw overall compensation climb 7.7% to $438,370 for 2020, the latest data the comptroller had.
There were 180,000 workers in New York’s securities industry in 2021, roughly unchanged from the previous year but 10% below its peak twenty years ago. New York remains the country’s financial capital, although its share of finance jobs has fallen as firms create new offices in Florida, Texas and other low-tax states.
The fact that Wall Street pay came in higher than New York had projected “should help the city exceed its expected revenue from income taxes,” according to the report. However, the city’s financial planning assumes that markets activity cools off this year, and that bonuses for the industry will drop by 17%.
“Wall Street’s soaring profits continued to beat expectations in 2021 and drove record bonuses,” DiNapoli said. “In New York, we won’t get back to our pre-Covid economic strength until more New Yorkers and more sectors — retail, tourism, construction, the arts and others ­­— enjoy similar success.”

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Rishi Sunak announced that fuel duty will be reduced by 5 pence per liter for 12 months, a cut he told Parliament will be worth £5 billion ($6.6 billion), starting from 6 p.m. U.K. time on Wednesday.
The level of fuel duty, a substantial contributor to British public finances, has been frozen at 57.95 pence per liter since 2011.
Sunak also revealed plans to double the government’s household support fund to £1 billion for those affected by higher energy costs.

Chancellor of the Exchequer Rishi Sunak leaves 11 Downing Street to announce the Treasury’s one-year spending review in the House of Commons in London, England, on November 25, 2020.
David Cliff/NurPhoto via Getty Images

LONDON — U.K. Finance Minister Rishi Sunak on Wednesday announced an immediate cut to fuel taxes and a longer-term tax reduction for workers in a bid to mitigate the country’s historic hit to living standards.
In his Spring Statement, Sunak announced that fuel duty will be reduced by 5 pence per liter for 12 months, a cut he told Parliament will be worth £5 billion ($6.6 billion), starting from 6 p.m. U.K. time on Wednesday. The government hopes the cut will reduce the cost of gasoline at the pumps amid a surge in global oil prices.

The level of fuel duty, a substantial contributor to British public finances, has been frozen at 57.95 pence per liter since 2011.
Sunak also revealed plans to double the government’s household support fund to £1 billion for those affected by higher energy costs.
Solar pumps, heat pumps and other similar measures will be subject to zero value-added tax (a tax on goods and services), down from 5%.

Cost of living crisis

The pressure had been on Sunak to address the spiraling cost of living crisis in the U.K., with households facing record rises in energy bills and inflation running at multi-decade highs and expected to worsen as the fallout from the Russia-Ukraine conflict intensifies.
U.K. inflation came in at 6.2% in February, new figures showed on Wednesday, its highest since March 1992 and well ahead of consensus expectations among economists.

The Bank of England expects inflation to reach 8% in the second quarter, and has cautioned that double-figure prints are not inconceivable before the end of the year if Russia’s assault on Ukraine and subsequent global supply shortages persist.
A planned 10% increase to National Insurance (a tax on earnings) kicks in for many workers in April, while at the same time the U.K.’s energy price cap soars 54% to accommodate higher costs of oil and gas, exacerbating the squeeze on household income as consumer prices continue to head north.
In Wednesday’s speech, Sunak announced that he would be raising the threshold at which workers begin paying national insurance by £3,000.
He also vowed to cut the basic rate of income tax from 20% to 19% in 2024, telling Parliament that this represented a “£5 billion tax cut over over 30 million people.”

During the height of the coronavirus pandemic, Sunak launched a series multi-billion pound economic support packages, fueled by the country’s largest peacetime borrowing levels in history.
In interviews over the weekend and in his annual Mais lecture given last month, however, Sunak has indicated that ever-expanding fiscal accommodation is not a strategy he wishes to sustain.
The U.K.’s Office for Budget Responsibility projects that for the fiscal year 2022/23, the underlying public debt to GDP ratio will be 83.5%, an improvement on October’s forecast of 85.4%. The U.K.’s budget deficit is projected to reach 5.4% of GDP in 2021/22 before tapering off to 3.9% in 2022/23, 1.9% in 2023/24 and 1.3% in 2024/25.
The country’s debt interest bill will reach £83 billion in 2022/23, Sunak cautioned.
The OBR also slashed its GDP growth forecast for this year from 6% to 3.8%
Measures may not be enough
“The Chancellor probably managed to avoid being tagged with the phrase ‘talking a good game on tax cuts’ by moving to increase the threshold on National Insurance and promising that the basic rate of tax will be cut in 2024,” said Neil Birrell, chief investment officer at Premier Miton Investors.
“However, middle earners will still feel the squeeze. The reduction in growth forecasts and inflation predictions are probably not that reliable for this year given the uncertainty abounding, but the direction of both is clear; growth is going lower and inflation is going higher.”
Although Sunak set forth a number of measures to help households weather the cost of living crisis, these “likely will not go far enough” to protect consumers given how drastic the outlook has become, according to Richard Carter, head of fixed interest research at Quilter Cheviot.
Carter said the rise to the national insurance threshold and basic income tax may “put more pounds in the pockets of voters ahead of the next general election,” but may do little to help in the here and now as the war in Ukraine continues to push up oil prices, utility bills rise sharply in the spring and inflation begins to bite for businesses and households.
“While the unemployment rate is expected to be unaffected by the slowing of economic growth, it does feel as if we are entering a stagflationary period,” Carter said.
“It will be difficult for the economy to emerge from this without some additional stimulus, but with interest rates on the rise it is a tricky balancing act for the government and the Bank of England.”
Carter said the government will be hoping the improvement in public finances is not blown off-course by geopolitical events. However, he added the uncertain outlook “could get even foggier in the months ahead.”

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Apple has acquired British fintech start-up Credit Kudos, a person familiar with the matter told CNBC.
Credit Kudos develops software that uses consumers’ banking data to make more informed credit checks on loan applications.
The company operates in a nascent space in the world of fintech known as “open banking.”

Customers walk past a digital display of the new green color Apple iPhone 13 pro inside the Apple Store on 5th Avenue in Manhattan, in New York, March 18, 2022.
Mike Segar | Reuters

LONDON — Apple has acquired British fintech start-up Credit Kudos, a person familiar with the matter told CNBC, confirming an earlier media report.
The deal was finalized earlier this week, the person said, preferring to remain anonymous discussing commercially sensitive information.

The news was first reported by crypto-focused media outlet The Block, citing three sources familiar with the matter. The deal values Credit Kudos at around $150 million, The Block reported.
A spokesperson for Apple said the U.S. tech giant “buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.” Credit Kudos was not immediately available for comment when contacted by CNBC.
Based in London, Credit Kudos develops software that uses consumers’ banking data to make more informed credit checks on loan applications. It is a challenger to the big credit reporting agencies, which include Equifax, Experian and TransUnion.
The deal could have serious implications for some of Credit Kudos’ clients, which include the London-based fintech firms Curve and Fronted.
Credit Kudos had been in discussions about a possible sale as early as January, two people familiar with the matter previously told CNBC. They spoke on the condition of anonymity due to the sensitive nature of the talks.

The company operates in a nascent space in the world of fintech known as “open banking,” where third-party firms securely link to people’s bank accounts to extract information and make payments on their behalf, provided they’ve got consent to do so.
The trend has gained momentum in Europe in recent years thanks to fintech-friendly rules introduced in 2018 that aim to increase competition in the payments industry.
It has ignited huge interest from investors, with Silicon Valley start-up Plaid being valued at $13.4 billion in a funding round last year.
Plaid had previously agreed to be bought by Visa, but scrapped those plans following an antitrust lawsuit from the U.S. government.
Visa subsequently acquired Tink, a Swedish company that competes with Plaid, for $2.1 billion.
It is not yet clear what Apple has planned for Credit Kudos. The company has made significant inroads into financial services over the years through its Apple Pay mobile wallet and the Apple Card, a credit card the firm launched in partnership with Goldman Sachs in the U.S.
Credit Kudos, which last received venture capital funding in early 2020, has raised a total of £7.8 million to date, according to Crunchbase data. The firm racked up losses of £4.5 million ($5.9 million) in its 2020 financial year, double the £2.2 million it lost in 2019, according to a Companies House filing.
– CNBC’s Sam Shead contributed to this report

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