Finance

A man with Nike bags talks on the phone in front of a Nike store as Black Friday sales begin at The Outlet Shoppes of the Bluegrass in Simpsonville, Kentucky, November 26, 2021.
Jon Cherry | Reuters

Check out the companies making headlines in midday trading.
Nike — Shares of Nike jumped 2.2% after the company reported a beat on the top and bottom lines in the third quarter. The retailer reported earnings of 87 cents per share on revenues of $10.87 billion, topping analysts’ estimates of 71 cents per share on revenues of $10.59 billion. Nike delayed giving its outlook for the year.

GameStop – Shares of the video-game retailer jumped 30.7%. There was no clear reason behind the move. The firm reported quarterly results last week, posting a per-share loss of $1.86 compared to expected earnings of 85 cents per share, according to FactSet’s StreetAccount. Shares of AMC Entertainment, a fellow meme-stock favorite, also leapt 11%.
Datadog — Shares of the software company jumped 6% after investment firm BTIG initiated coverage of the stock with a buy rating. BTIG said in a note to clients that Datadog is set up for near- and long-term success.
Alibaba — Shares of the China-based e-commerce giant jumped 11% after the company increased its share buyback program to $25 billion from $15 billion, effective for a two-year period through March 2024. Alibaba also appointed Weijian Shan, executive chairman of Hong Kong-headquartered investment group PAG, to its board as an independent director.

Stock picks and investing trends from CNBC Pro:

Tencent Music Entertainment — The entertainment services company saw its shares jump 9.6% after it reported better-than-expected earnings for the most recent quarter. Tencent Music also said it would pursue a secondary listing on the Hong Kong Stock Exchange.
Pfizer — The biopharmaceutical giant’s stock price slipped 2.1% after the company said it will distribute up to four million treatment courses of its oral Covid pill to dozens of poorer nations in a partnership with the United Nations Children’s Fund. 

Okta — Shares of the authentication and identity management firm fell 1.7% on news of a potential breach from a hacking group. Okta said it had “detected an attempt to compromise the account of a third party customer support engineer working for one of our subprocessors” but found no new evidence of an attack.
Alphabet — The tech giant’s stock price spiked 2.7% after Google’s parent company spun off Sandbox AQ, a quantum computing start-up that includes former Google CEO Eric Schmidt as investor and chairman of the board.
Sherwin-Williams — The paint company’s shares gained 1.7% after Bank of America upgraded the stock to a buy from neutral. Analyst Steve Byrne said the issues facing the chemicals sector are already accounted for in the stock price and that the shares could be a way to bet on the U.S. economy over Europe.
Carnival — The cruise company slipped less than 1% after it provided a business update for the first quarter that includes a net loss of $1.9 billion, compared with estimates of $1.36 billion, according to FactSet’s StreetAccount. Carnival also reported revenues of $1.62 billion, compared to estimates of $2.26 billion.
Energy stocks — Several energy stocks were lower on Tuesday and were the top decliners in the S&P 500 after jumping in the previous session, as investors paused to take profits. Hess and Occidental declined more than 2%. EOG, Diamondback and Marathon declined more than 1%. Energy is the only sector in the green so far in 2022.
— CNBC’s Samantha Subin, Sarah Min and Jesse Pound contributed reporting

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Forty-four percent of employees are “job seekers,” according to Willis Towers Watson’s 2022 Global Benefits Attitudes Survey.
Data suggest the Great Resignation, a pandemic-era labor trend also known as the Great Reshuffle, is continuing.
Over half of workers said higher pay was a top reason they’d look for a new job.

Thianchai Sitthikongsak | Moment | Getty Images

Almost half of employees are looking for a new job or plan to soon, according to a survey, suggesting the pandemic-era phenomenon known as the Great Resignation is continuing into 2022.
To that point, 44% of employees are “job seekers,” according to Willis Towers Watson’s 2022 Global Benefits Attitudes Survey. Of them, 33% are active job hunters who looked for new work in the fourth quarter of 2021, and 11% planned to look in the first quarter of 2022.

“The data shows employees are prepared and open to go somewhere else,” according to Tracey Malcolm, global leader of the future of work and risk at the consulting firm.
The survey polled 9,658 U.S. employees from large and midsize private employers across a broad range of industries in December 2021 and January 2022.

Great Resignation

The Great Resignation, also known as the Great Reshuffle, has been a hallmark of the U.S. labor market since spring 2021, when the economy began emerging from its pandemic hibernation and demand for workers grew among businesses.
Job openings and quits swelled to historic highs, and layoff rates fell to record lows. Wages grew at a fast clip as businesses competed for talent.

Nearly 4.3 million people quit their jobs in January, just shy of a monthly record set in November, according to most recent federal data. Almost 48 million people quit in 2021, an annual record.

Data suggests most aren’t quitting to sit on the sidelines — a strong job market with ample opportunities and higher pay are luring them to find work elsewhere, according to economists. Some are reinventing their careers altogether.
Over half of workers (56%) said pay is a top reason they’d look for a job with a different employer, according to the survey. Forty-one percent would leave for a 5% increase.
Households have been battling persistently high inflation, which has eaten into budgets and outstripped raises for the average worker.

But almost 20% said they’d take a new job for the same pay — suggesting factors other than wages are important, too. Health benefits, job security, flexible work arrangements and retirement benefits were behind pay, respectively, as the top five reasons employees would move elsewhere.
“Some are leaving for a nudge up in pay, but some aren’t,” Malcolm said.
One of the biggest disconnects between workers and employers is around remote work, Malcom said. Employees want more remote work than they expect their current employer to allow.
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Currently, 26% of survey respondents are always or mostly working from home, and 15% have an equal split between home and the office; but higher shares (36% and 22%, respectively) would prefer remote work.
“[Employers] are revving up a return to onsite [work],” Malcolm said. “I think companies need to be careful what they’re revving up; it may not be the model employees want.”
Less time commuting, lower costs associated with going to the office and better management of household commitments are the three biggest benefits workers see with remote work, according to the survey. They see disadvantages, too: lack of social interactions at work, feeling disconnected and greater challenge to build relationships round out the top three drawbacks.

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The U.K. Advertising Standards Authority has told more than 50 crypto firms to review their ads and make sure they are in compliance with the rules.
The ASA also threatened firms with targeted sanctions if “problem ads” persist after May 2.
It has previously banned ads from the likes of Coinbase and Papa John’s over concerns they misled consumers.

A bitcoin ATM inside a shop in Finsbury Park, London, on Feb. 4, 2022.
Luke MacGregor | Bloomberg | Getty Images

LONDON — Over 50 cryptocurrency companies have been sent enforcement notices by the U.K.’s advertising watchdog as part of a regulatory crackdown on promotions in the industry.
The Advertising Standards Authority said Tuesday it has told the firms to review their ads and make sure they are in compliance with the rules. It also threatened firms with targeted sanctions if “problem ads” persist after May 2.

This would include reporting non-compliant advertisers to another regulator, the Financial Conduct Authority.
In its notice to the companies, the regulator gave guidance stating advertisers must make clear digital assets are unregulated in the U.K. Firms must not urge people to buy bitcoin or another cryptocurrency in their ads, or create the “fear of missing out” on an investment, the ASA added.
The ASA didn’t name the companies it has contacted, but said it has previously banned ads from the likes of crypto platform Coinbase and pizza chain Papa John’s over concerns they misled consumers.
“This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible,” the ASA said in a statement Tuesday.
It comes as Britain takes a tougher line on the crypto industry. The government in January said it would bring crypto ads under the same rules for financial promotions, a move that would require advertisers in the industry to be authorized by regulators.

Regulators have also proposed limiting crypto ads in such a way that consumers may only respond to them if they qualify as high-net-worth individuals or sophisticated investors, a move that has been criticized by industry representatives.
A consultation from the Financial Conduct Authority with the industry on regulation of crypto ads is set to expire on Wednesday.
Global Digital Finance, an industry body that includes crypto exchanges Coinbase and Bitfinex, said it has sent a letter to U.K. Finance Minister Rishi Sunak expressing some concerns.
“Rather than attempting to broaden the scope of existing legislation, stifling the market and attracting unintended consequences, a new bespoke regime should be implemented,” Lavan Thasarathakumar, Global Digital Finance’s director of government and regulatory affairs, said in the letter.
“This regime would include obligations for how cryptoasset promotions should be communicated and more generally would provide clarity on how cryptoasset firms should conduct themselves and how regulators should supervise them.”
Separately, a deadline for crypto firms to be registered with the FCA is set to elapse on Mar. 13. A number of companies, including Revolut and Copper, face the prospect of having to wind down their crypto operations in the U.K. if their application is not approved in time.

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Take a look at some of the biggest movers in the premarket:
Nike (NKE) – Nike reported quarterly profit of 87 cents per share, 16 cents a share above estimates. Revenue beat estimates as well, helped by an increase in digital sales and its ability to successfully navigate supply chain issues. Nike jumped 6.3% in the premarket, and its results also boosted shares of rival Foot Locker (FL) by 1.4%.

Okta (OKTA) – Okta is investigating reports of a digital breach, with the authentication services provider saying it would provide more information when it becomes available. Okta shares slid 6.3% in premarket trading.
Alibaba (BABA) – Alibaba increased its share buyback program to $25 billion, the largest ever for the China-based e-commerce giant. The move follows a slump in the stock’s price on regulatory and growth concerns. Alibaba surged 8% in premarket action.
Altria (MO) – The tobacco producer’s shares rose 1.2% in the premarket after Goldman upgraded Altria to “buy” from “neutral.” Goldman pointed to Altria’s strong cash flow, high profit margins and attractive dividend amid a current “risk-off” environment.
Tencent Music (TME) – Tencent Music rallied 4.5% in premarket trading after the entertainment services company reported better-than-expected quarterly earnings and said it would pursue a secondary listing on the Hong Kong Stock Exchange.
Switch (SWCH) – Switch remains on watch following a Bloomberg report that the data center operator was exploring options including a possible sale of the company. Switch has risen for the past five trading sessions, gaining 11% over that stretch.

Upstart Holdings (UPST) – The cloud-based lending platform operator was downgraded to “underperform” from “neutral” at Wedbush, which cited Upstart’s dependence on third-party funding as well as macroeconomic risks. Upstart slid 3.6% in premarket action.
Canadian Pacific Railway (CP) – Canadian Pacific and its workers agreed to binding arbitration to resolve their labor dispute, allowing operations to resume after a weekend lockout.
Paramount (PGRE) – The office-centered real estate investment trust saw its shares rise 1.9% in the premarket after it rejected a takeover offer from asset management firm Monarch Alternative Capital. Paramount said the $12 per share offer significantly undervalues the company but said it remains open to any ideas that enhance shareholder value.

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STATE MEDIA have not tried to hide the fact that billions of dollars in global investors’ funds have drained away from China in recent weeks. They have attributed the outflows—$11.5bn since the start of March and counting—to volatility in global markets, a hawkish Federal Reserve and the impact of Russia’s invasion of Ukraine on global supply chains. One government publication has downplayed the seriousness of the situation and speculated that foreign money will soon come pouring back in.Indeed, China’s markets have experienced short spells of outflows in recent years only to see them reverse quickly, usually within two months. Onshore markets have mainly been a sure bet since the inclusion of many mainland-traded securities in several global indices, such as MSCI’s flagship emerging-markets index, starting in 2018. Tens of billions of dollars’ worth of inflows have been ushered into China’s markets each year since then. Occasional outflows, once in 2019 and twice in 2020, have occurred in that time. During the most severe bout in July 2020 about $12bn drained away before net inflows resumed two and a half months later.This time around, however, foreign investors say that deeper, structural problems are sapping China’s markets. The outflows have been more violent. And they have been accompanied by a global sell-off in Chinese securities. The Hang Seng tech index, which tracks many of China’s biggest tech groups listed in Hong Kong, is down by 45% compared with a year ago. The NASDAQ Golden Dragon China index, which includes similar companies listed in America, has fallen by 58% over the same period. “A bounce is unlikely to come easily until investors see structural forces change again,” says Kevin Lai of Daiwa Capital Markets, a broker.Reports in the state media notwithstanding, the outflows do not appear to be closely linked to Fed tightening. Even as capital has left China, it has kept flowing into other emerging markets, suggesting that there is no overall shortage of liquidity, according to the Institute of International Finance, an industry group. Instead investors point to China-specific factors. State meddling in the private sector and with tech companies has, of course, become commonplace. Another worry is that Xi Jinping’s support for Russia could lead to sanctions on Chinese companies. The war has also led to increased concerns over Taiwan, which China claims as its own and has vowed to take back by any means necessary. Fears over a Chinese invasion have for the first time led some investors to add geopolitical risk to their frameworks for assessing their Chinese investments. The risk premium that investors deem acceptable to hold Chinese assets is rising, pushing some to scale back their allocations. The longer the war in Ukraine drags on, the higher the premium could go. Moreover, China’s weakening control over Omicron, the highly transmissible variant of covid-19, is darkening the economic outlook. The response to a worsening outbreak in Shanghai, home to many foreign executives, has become an embarrassment for the local government. International flights have been diverted from the metropolis. A chaotic, rolling lockdown of districts is being implemented. The gates of residential communities are being welded shut to keep dwellers from leaving. The situation, in China’s most developed city, and two years into the pandemic, reveals Mr Xi’s lack of an exit strategy from the crisis.The property market has also continued to wobble. On March 22nd Evergrande, a troubled developer, said Chinese banks had claims on $2bn of its cash, another bad sign for foreign creditors hoping to recover their investments.The government has been slow to act. Many had expected “shock and awe” from the National People’s Congress, China’s legislature, in early March, says Rob Mumford of GAM, an asset manager. “They didn’t get that.”But the market sell-off has jolted officials into action. The Financial Stability Committee (FSC), chaired by Liu He, a top economic adviser, is now spearheading an attempt to regain investors’ confidence. Starting on March 15th Mr Liu and the FSC have promised to increase lending growth and push state-owned funds to buy more stocks. Officials in Beijing will help stabilise markets in Hong Kong.China’s leadership will support the listing of firms in America and ease its crackdown on tech companies. Housing-market policies will become more accommodative. And the government is also preparing to tackle the Omicron outbreak with self-testing kits and Pfizer’s Paxlovid pill, which helps protect infected people against serious disease. Mr Liu hopes to better communicate China’s economic plans to the market in the future. But the important thing, says Laura Wang of Morgan Stanley, a bank, is how quickly the authorities can execute their promises. It will take more than talk to stanch the outflows. ■ More

Stock futures were flat in overnight trading after Federal Reserve Chair Jerome Powell said the central bank is open to higher rate hikes to combat rising inflation.
Futures on the Dow Jones Industrial Average rose 10 points, while S&P 500 futures Nasdaq 100 futures were flat.

Nike shares rose 6% in extended trading on Monday after the retailer reported a beat on the top and bottom lines in the third quarter, buoyed by strong demand in North America.
The Monday trading session was volatile as Powell vowed to take “necessary steps” to curb inflation less than a week after the agency raised rates for the first time since 2018. Powell said “inflation is much too high” and added that rates could increase more than the previously approved 25 basis points if needed.
During regular trading on Monday, the Dow Jones Industrial Average fell 201.94 points, or 0.6%, breaking a five-day winning streak. Meanwhile, the S&P 500 finished marginally lower after rising as much as 0.4% during the session, while the Nasdaq Composite fell 0.4% to 13,838.46 after dipping as much as 1.5% at session lows.
“I’m pretty encouraged that the market came back pretty nicely in the last hour of trading,” Ed Yardeni, Yardeni Research president and chief investment strategist, told CNBC’s “Closing Bell: Overtime” on Monday.
“I think the market is looking for opportunities and the opportunities continue to be in areas like energy, commodities. I think the market will also find more opportunities in financials as interest rates go up and technology looks awfully cheap to me,” he added.

Meanwhile, oil prices rose again on Monday following news that the European Union is weighing a ban on Russian oil. West Texas Intermediate and Brent crude both rose about 7%, settling at $112.12 and $115.62 a barrel. Amid the rally, energy stocks including Occidental Petroleum and Marathon Oil jumped 8% each.
Investors on Monday continued to watch the situation in Eastern Europe as ongoing peace talks between Russia and Ukraine failed to make progress and Ukraine refused to surrender the port city of Mariupol to Russian forces. Market watchers are also monitoring the omicron subvariant as it spreads across Europe along with one of the worst Covid-19 outbreaks in China since 2020.
Buzzfeed is set to report earnings before the bell on Tuesday, followed by Poshmark and Adobe after the bell.

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Federal Reserve Chairman Jerome Powell is slated to speak Monday at the National Association for Business Economics annual conference in Washington, D.C.

His remarks come less than a week after the Fed’s first rate hike in more than three years. The Fed also signaled last week that it expects to raise rates at its remaining six meetings this year.
The central bank also raised its outlook on U.S. inflation for 2022, and trimmed its economic growth forecast as well.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the Fed said in a statement.
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