Finance

Take a look at some of the biggest movers in the premarket:
Target (TGT) — Shares of the big-box retailer rallied 11% in premarket trading after Target said it expects growth to continue even after its pandemic-era gains. Target posted adjusted fourth-quarter earnings of $3.19 per share on revenue of $31 billion. Analysts surveyed by Refinitiv expected a profit of $2.86 per share on revenue of $31.39 billion.

Kohl’s (KSS) — Shares of Kohl’s rose more than 5% in the premarket after the company gave upbeat guidance for fiscal year 2022. The retailer beat earnings expectations in the fourth quarter but missed the Refinitiv consensus sales estimate.
AutoZone (AZO) — AutoZone shares added 3.6% in early morning trading after a better-than-expected earnings report. The company reported second-quarter earnings of $22.30 per share on revenue of $3.37 billion. Analysts surveyed by Refinitiv had expected a profit of $17.79 per share on revenue of $3.17 billion.
Kroger (KR) — Shares of Kroger rose more than 2% in the premarket after Telsey upgraded the grocery store chain ahead of its earnings report. “We believe we have higher visibility and confidence into Kroger’s multi-year omni-channel growth runway,” Telsey’s Joseph Feldman said.
Foot Locker (FL) — Foot Locker shares retreated 3% in premarket trading after Goldman Sachs became the latest Wall Street firm to downgrade the athletic retailer after a disappointing update Friday. Barclays and B. Riley on Tuesday both also downgraded Foot Locker.
Workday (WDAY) — Shares of Workday rose more than 7% in premarket trading after the software company beat expectations for its quarterly results. The company reported a profit of 78 cents per share, topping the Refinitiv estimate of 71 cents per share. Revenue also surpassed projections.

HP Inc. (HPQ) — Shares of HP dipped 2% in premarket trading even after an earnings beat. The company posted adjusted earnings of $1.10 per share versus the Refinitiv estimate of $1.02 per share. Sales also topped expectations.
Lucid Group (LCID) — Shares of Lucid Group tanked more than 12% premarket after a disappointing quarterly report. The electric vehicle maker reported a wider-than-expected loss of 64 cents per share compared with the Refinitiv consensus estimate loss of 25 cents per share. Revenue also missed expectations.
Zoom Video (ZM) — Zoom shares lost 2.5% in premarket trading after the video conferencing platform issued full-year guidance below what analysts had predicted. The company beat earnings and revenue expectations.
Novavax (NVAX) — Shares of Novavax fell 6.6% premarket after the company missed on the top and bottom line of its quarterly report. Novavax posted a loss of $11.18 per share on revenue of $222.2 million.

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Bitcoin jumped 13% on Tuesday continuing its sharp rebound as the Russian war with Ukraine continues and the U.S. ratchets up sanctions.
Bitcoin proponents have seen bitcoin as a safe haven asset or “digital gold,” but that definition has unraveled recently. One expert said that is changing and bitcoin is having a “watershed” moment.
Debate has also been raging over whether bitcoin could be used by Russia to evade sanctions.

A visual representation of bitcoin.
STR | NurPhoto via Getty Images

Bitcoin jumped 13% on Tuesday continuing its sharp rebound as the Russian assault on Ukraine continues and the U.S. ratchets up sanctions.
The cryptocurrency was up more than 13% at $43,650.80 as of 7:04 a.m. ET after hitting a high in the past 24 hours of $44,165.90, according to CoinDesk data. That rally comes after cryptocurrency prices plunged last week as risk assets such as stocks sold off following Russia’s invasion of Ukraine.

Ether was up more than 10% at $2,907.88
Market analysts said there could be a number of reasons behind the big surge in bitcoin including investors buying the dip, attempts to evade sanctions and Ukrainians and Russians trying to get their money out of their respective countries.

Crypto to evade sanctions?

Bitcoin’s rally comes as the U.S. imposed further sanctions on Russia. Washington targeted Russia’s central bank, effectively prohibiting Americans from doing any business with the bank as well as freezing its assets within the U.S.
That comes on top of sanctions that have targeted oligarchs and Russia’s sovereign debt as well as moves aimed at cutting the country off from the global financial system.
Debate has been raging over whether bitcoin, which is not owned or issued by a single authority like a central bank, could be used by Russia to evade sanctions.

Veteran investor Mark Mobius said that could be one reason behind bitcoin’s rise.
“I would say that’s the reason why bitcoin has shown strength now — because the Russians have a way of getting money out, getting their wealth out,” Mobius, founding partner of Mobius Capital Partners, told CNBC on Tuesday.
But the amount of money that Russia would need to convert to and from bitcoin might be too much, according to Ari Redbord, head of legal and government affairs at TRM Labs.
“You’re going to see Russia attempt to circumvent the U.S. financial system by turning to crypto. I think the issue is … the liquidity just simply isn’t there,” Redbord told CNBC’s “Squawk Box Asia.”

But cryptocurrency could also be a way for regular Russians and even Ukrainian citizens to get their money out of their respective countries as their currencies remain volatile.
Bitcoin traded at a 6% premium on Binance exchange’s Ukrainian hryvnia market, according a note published by cryptocurrency research firm Kaiko on Monday. Kaiko also noted that it is “seeing a surge in both Russian ruble and Ukrainian hryvnia cryptocurrency transactions” on cryptocurrency exchanges.
“Until there were no heavy financial sanctions on Russia, bitcoin was moving in tandem with the U.S. stock indexes, but these reports, which confirmed real use case for cryptocurrencies in times of crisis, are pushing the price higher,” Yuya Hasegawa, crypto market analyst at Japanese exchange Bitbank, told CNBC on Tuesday.
On Sunday, Mykhailo Fedorov, vice prime minister of Ukraine, asked major cryptocurrency exchanges to block the addresses of Russian users.
Binance, the world’s largest exchange, said it would freeze accounts for any Russians on the sanctions list, but would not “unilaterally” block accounts of all Russian users.
Other cryptocurrency exchanges took a similar stance.

Bitcoin ‘watershed’ moment?

Over the years, bitcoin proponents have touted the cryptocurrency as “digital gold,” an asset that provides a safe haven for investors during times of turmoil or even as a potential hedge against inflation. But bitcoin has not performed that way. Instead, it has been more correlated to the movement of stock prices, even as inflation continues to hit multi-year highs and a military conflict plays out. That case for bitcoin as digital gold has unraveled in recent weeks.
Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said that could be changing.

“Bitcoin and cryptocurrencies are arguably having their watershed moment against backdrop of global uncertainty and tension related to the Russia-Ukraine crisis,” Ayyar told CNBC.
“Crypto is decoupling from traditional markets and can be clearly seen in the performance.”
People have been donating cryptocurrency to the Ukrainian army too, “proving that crypto is fundamentally a technology that cannot be ignored,” Ayyar added.
He also said that a bottom for bitcoin was already forming as the war was getting underway.
Michael Rinko, venture associate at AscendEx, told CNBC on Monday that $38,000 was a key level for bitcoin.
“More people bought at $38,000 than at any other level above or below for a good margin,” he said.
However, Bitbank’s Hasegawa warned of further volatility ahead.
“There still are a lot … of potential risks up ahead for the market, like the Russia—Ukraine negotiation falling apart, even more huge air strikes on Ukrainian cities, nuclear threats, and U.S. jobs report on Friday, so it looks like the next couple of days are going to be a wild ride for bitcoin,” Hasegawa said.
— CNBC’s Tanaya Macheel contributed to this report. More

Mobile World Congress

“By the end of the year, N26 will be structurally IPO-ready,” co-CEO Maximilian Tayenthal said in an interview.
N26’s stock market debut could take place as early as 2024, though the firm is in no rush to list.
The German fintech start-up recently raised $900 million at a $9 billion valuation.

N26 co-CEO Maximilian Tayenthal speaking at a tech conference in London on June 12, 2019.
Simon Dawson | Bloomberg via Getty Images

BARCELONA — German banking start-up N26 will be prepared for an initial public offering by the end of 2022, co-CEO Maximilian Tayenthal told CNBC.
“By the end of the year, N26 will be structurally IPO-ready,” Tayenthal said in an interview Monday on the sidelines of the Mobile World Congress technology conference.

Based out of Berlin, N26 offers fee-free checking accounts through an app, competing with established lenders in addition to rival fintech firms such as Revolut.
Tayenthal founded the company in 2013 with longtime friend Valentin Stalf, and the two have since grown it into a $9 billion business.
N26 recently raised $900 million in fresh funding to help it branch out beyond retail banking into new areas like crypto and stock trading. It counts the likes of Coatue and billionaire PayPal co-founder Peter Thiel as investors.
N26’s stock market debut could take place as early as 2024, Tayenthal said. However, he added the firm is in no rush to list.
“We are not stressed to enter the public markets anytime soon,” N26’s boss said. “The private markets have proven to be incredibly liquid.”

‘Liquidity-generating machine’

Global stock markets have seen seismic wobbles in recent months as traders navigate a plethora of uncertainties from the prospect of higher interest rates to the Ukraine-Russia conflict.
Volatility in the market has spooked some companies into delaying or scrapping altogether any preparations to go public. In January, Dutch file-sharing service WeTransfer canceled its IPO plans due to “volatile market conditions.”
N26 is evaluating its path toward becoming a publicly-listed company at a time when traders are getting worried about the potential for higher interest rates from the U.S. Federal Reserve and other major central banks.
Higher rates are viewed as bad news for high-growth tech companies that tend to rely on debt financing to fuel rapid expansion.
However, Tayenthal said N26 is not put off by the prospect of rate hikes. The start-up is a licensed bank, and in 2020 had around 4.3 billion euros ($4.8 billion) sitting on its balance sheet.
“We are one of the companies that actually have a hedge on rising interest rates,” Tayenthal said. “N26 is a liquidity-generating machine.”
If rates were to rise dramatically, N26 wouldn’t need to raise money through an IPO as the business would become “self-sustaining,” the company’s chief added.
Banks typically benefit from rising interest rates, since they can generate a higher yield on cash deposits.
Still, N26 remains unprofitable. The group reported a net loss of 150.7 million euros in 2020 — though this was down 30.5% from the previous year. More

Bill Ackman, founder and CEO of Pershing Square Capital Management.
Adam Jeffery | CNBC

Investor Bill Ackman said Monday the U.S. should consider military intervention in defense of Ukraine as Russian forces continue to advance into the country from multiple directions.
In a series of tweets to more than 400,000 followers, the founder and CEO of Pershing Square Capital Management urged President Joe Biden to start considering taking actions beyond economic sanctions if the conflict doesn’t resolve.

“I hope Russia stops this onslaught, but I don’t see how Putin saves face. We need to be prepared for what comes next which means we need to start thinking about intervening military,” Ackman said in the Twitter thread. “Isn’t it time we set a real red line?”
“We can’t sit back and allow hundreds of thousands of Ukrainians and perhaps millions to die. I don’t want to live in that world and you don’t either. @POTUS, it is in your hands. You can fix the errors of the past and protect our future. With all due respect Mr. President, the time is now,” Ackman said.
The Biden administration has announced sanctions against Russia’s central bank, the National Wealth Fund of the Russian Federation and Russia’s Ministry of Finance, moves that effectively prohibit Americans from doing any business with the entities. The action will also freeze assets of the Russian central bank in the United States.
In the latest development, a Ukrainian delegation has arrived near the border with Belarus to hold talks with Russian officials. Ukraine’s armed forces continue to hold off Russian troops, defending and retaining control of key cities, and slowing Russia’s advance on Kyiv.
Ackman later moved to clarify his earlier remarks, saying he wasn’t proposing U.S. troops on the ground as soon as possible.

“I am not advocating U.S. boots on the ground today. Putin has threatened the nuclear option,” Ackman wrote in a separate post. “We need to set a red line on the use of nuclear weapons to deter their use. If the unthinkable happens, I see no alternative to our entering the war.”
The White House told CNBC the administration continues to provide Ukraine with security assistance to help it defend its country.
“Deliveries of U.S. security assistance to help the Ukrainian military defend their country are ongoing and have been arriving regularly. And we are working with Allies to facilitate the transfer of U.S.-made military equipment from their inventories to Ukraine,” a White House spokesperson said.Clarification: This article has been updated to clarify that the sanctions announced Monday will freeze assets of the Russian central bank in the United States.

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Traders on the floor of the NYSE, Feb. 24, 2022.
Source: NYSE

U.S. stock futures rose in overnight trading on Monday before the first trading day of March as investors continue to monitor the fighting between Russia and Ukraine.
Dow futures rose about 70 points. S&P 500 futures added 0.2% and Nasdaq 100 futures increased 0.2%.

In a volatile session on Monday, the Dow Jones Industrial Average lost nearly 170 points. The S&P 500 dropped 0.24% and the Nasdaq Composite rose 0.4%.
The moves come amid fighting between Russia and Ukraine, where Ukrainian forces have held key cities including the capital of Kyiv.
Ukrainian and Russian officials wrapped up a critical round of talks Monday.
Meanwhile, the central bank of Russia more than doubled its key interest rate on Monday, as the ruble plummeted after heavy sanctions were imposed on Moscow by the West.
JPMorgan’s Marko Kolanovic said Monday the worst of the Russia-Ukraine sell-off might be over.

“The Russia/Ukraine crisis will continue to produce market volatility, but the direct impact on corporate earnings should be small. Indirect risks are more substantial, given effects of higher commodity prices on inflation, growth, and consumers,” Kolanovic said in a Monday afternoon note. “However, one silver lining is that the crisis forced a dovish reassessment of the Fed by the market.”
Investors are also gearing up to hear from Federal Reserve Chair Jerome Powell in his semiannual hearing at House Committee on Financial Services, which begins on Wednesday.
Monday also marked the final trading day of February. The Dow lost 3.5% in February. The S&P 500 and Nasdaq fell 3.1% and 3.4%, respectively, this month.
Looking to Tuesday, big box retailer Target reports earnings before the bell and cloud giant Salesforce reports after the close.
On the economic front, February’s Markit Manufacturing PMI will be released at 9:45 a.m. on Tuesday. ISM manufacturing PMI for February will be out at 10:00 a.m.

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Zoom founder Eric Yuan poses in front of the Nasdaq building as the screen shows the logo of the video-conferencing software company Zoom after the opening bell ceremony on April 18, 2019 in New York City.
Kena Betancur | Getty Images

Check out the companies making headlines after the bell:
Workday — Shares of Workday rose more than 5% in after-hours trading on Monday after beating on the top and bottom lines of its quarterly results. The software stock reported EPS of 78 cents per share, topping estimates of 71 cents, according to Refinitiv. Revenue also topped estimates.

Zoom Video — Shares of the video conferencing company ticked 2% lower in extended trading on Monday after issuing full-year guidance below what analysts had predicted. Zoom, however, reported earnings of $1.29 per share on revenue of $1.017 billion. Analysts expected earnings of $1.06 on revenue of $1.046 billion, according to Refinitiv. Zoom shares fell as much as 13% in extended trading on Monday.
Lucid Group — Shares of Lucid Group tanked more than 10% in after hours trading after its quarterly report. The company reported a wider-than-expected loss of 64 cents, while analysts expected a loss of 25 cents per share, according to Refinitiv. Revenue also missed estimates.
Novavax — Shares of Novavax fell 5% after the bell on Monday after missing on the top and bottom line of its quarterly report. The company posted a loss of $11.18 per share. Revenue came in at $222.2 million.

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The Raytheon stand is seen at the 53rd International Paris Air Show at Le Bourget Airport near Paris, France June 21, 2019.
Pascal Rossignol | Reuters

Check out the companies making headlines in midday trading.
Defense stocks — Defense stocks rose as the conflict between Russia and Ukraine continued on Monday and European countries pledged to spend more on defense. Northrop Grumman climbed 7.9%, while Raytheon Technologies gained 4.6%, and General Dynamics added 2.8%. Lockheed Martin, which was also upgraded to to outperform from peer perform by Wolfe Research, rose 6.6%.

BP — Shares of the oil and gas giant fell 3.9% after the company said it would offload its nearly 20% stake in Russia’s state-controlled oil producer Rosneft. BP CEO Bernard Looney and former exec Bob Dudley are also resigning from Rosneft’s board, effective immediately.
Block — Shares of fintech company Block rose 6.4% after an upgrade to outperform from BMO Capital Markets. The company said investors have an opportunity to pick up shares of Block at a growth-at-a-reasonable-price level after the stock’s pullback.
Tesla — Shares of Tesla rallied 7.4% after Bernstein hiked its price target on the EV stock. “One obvious justification for TSLA’s valuation is its unique growth profile, which stands out, even among tech companies,” analyst Toni Sacconaghi said. However, Sacconaghi kept an underperform rating on the stock and still forecasts significant downside from here.
Renewable Energy Group — Shares of Renewable Energy Group surged 40.3% after Chevron said it would buy the biodiesel maker in an all-cash deal valued at $3.15 billion. Chevron gained 2.5%.
First Horizon — Shares of the Memphis-based bank surged 28.6% following news that the company will be acquired by TD in an all-cash deal worth $13.4 billion, or $25 per share, a move that will allow the Canadian banking giant to expand its footprint in the southeastern part of the U.S.

Healthcare Trust of America — Shares of the health-care-centered real estate investment trust fell 5.3% following news that it will merge with rival Healthcare Realty in a deal with an implied value of $35.08 per share. Healthcare Realty shares dropped 11.1%.
Foot Locker — Shares of the shoe retailer rose 8.7% despite being downgraded to underweight from equal weight at Morgan Stanley. The Wall Street firm said it’s concerned about revenue potential after the company said it would sell fewer Nike products.
Gilead Sciences — Shares of Gilead Sciences dipped 1.1% after BMO downgraded the stock to market perform from outperform. “We are not negative on the name, but view Gilead as a ‘show me’ story and look to management for further de-risking of assets before we are more constructive,” the firm said.
Lear Corp — The automotive-seating company saw its shares fall 5.7% following a downgrade by Morgan Stanley from overweight to equal eight. The firm said its concerned about Lear’s decelerating growth.
 — CNBC’s Hannah Miao and Maggie Fitzgerald contributed reporting.

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Take a look at some of the biggest movers in the premarket:
Berkshire Hathaway (BRK.B) – Berkshire reported record annual profit in 2021, helped in large part by its investment in Apple (AAPL). Berkshire also bought back a record $27 billion in stock last year, but the pace of buybacks slowed during the fourth quarter. Berkshire Class “B” shares fell 1% in the premarket.

BP (BP) – BP shares tumbled 7.1% in the premarket after saying it would sell its nearly 20% stake in Russia’s state-controlled oil producer Rosneft following Russia’s invasion of Ukraine.
First Horizon (FHN) – First Horizon shares surged 32.3% in premarket trading after the bank agreed to be acquired by Toronto-Dominion (TD) in an all-cash deal worth $25 per share or $13.4 billion. The move will help Toronto-Dominion expand its presence in the southeastern part of the U.S.
Renewable Energy (REGI) – The maker of renewable energy fuels agreed to be acquired by Chevron (CVX) for $61.50 per share, compared to the Friday close of $43.81. Renewable Energy shares soared 36.5% in the premarket.
Starbucks (SBUX) – Workers at a Starbucks café in Mesa, Arizona voted to unionize, becoming the third Starbucks location in the U.S. to do so. Starbucks slid 1% in premarket action.
Zendesk (ZEN) – The customer service platform operator ended its deal to buy SurveyMonkey parent Momentive Global (MNTV) after Zendesk shareholders rejected the proposed transaction on Friday. That follows objections to the all-stock deal by activist investor Jana Partners as well as skepticism about the deal’s benefits by Wall Street analysts. Momentive slid 2.4% in premarket action while Zendesk rose 0.4%.

Northrop Grumman (NOC), Raytheon Technologies (RTX), General Dynamics (GD) – These and other defense stocks surged in the premarket in the aftermath of Russia’s invasion of Ukraine and the pledge by European Union countries to spend more on defense. Northrop Grumman added 5%, Raytheon Technologies rallied 6% and General Dynamics gained 5.4%.
Healthcare Trust of America (HTA) – The health-care-centered real estate investment trust agreed to combine with rival Healthcare Realty (HR) in a deal with an implied value of $35.08 per share. Healthcare Trust slid 5% in the premarket, while Healthcare Realty tumbled 9.2%.
PulteGroup (PHM), Toll Brothers (TOL) – The home builders received double upgrades to “buy” from “underperform” at Bank of America Securities. The firm notes underperformance by home builders in 2022 despite strong earnings and guidance and feels the risk/reward profile is now favorable. PulteGroup rose 1.1% in the premarket, while Toll Brothers added 1%.
Nielsen (NLSN) – The company best known for TV ratings saw its stock rally 7.6% in the premarket after reporting adjusted quarterly earnings of 46 cents per share, 10 cents above estimates, and also issuing an upbeat full-year forecast. The company also announced a $1 billion share repurchase program.

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