Finance

U.S. stock futures were little changed Wednesday evening after the Dow Jones Industrial Average closed at its lowest level of the year amid escalating tensions between Russia and Ukraine.
Dow futures rose 0.08%, while futures tied to the S&P 500 were unchanged and Nasdaq 100 futures added 0.01%.

In the regular trading session, the Dow dropped about 464 points, or 1.3%. The S&P 500 fell 1.8%, moving deeper into correction and ending the day about 12% from its Jan. 3 record close. The tech-heavy Nasdaq Composite lost 2.6%.
Investors continued to assess the potential outcome of the situation in Ukraine and what it could mean for markets, as the country warned its citizens in Russia to leave. Meanwhile, the U.S. said it will impose additional sanctions against Russia, and the U.K. said it’s ready to do the same.
However, some are beginning to shrug off Ukraine-related anxieties, noting that it’s not alone in contributing to the current market pulldown and won’t be the cause of much, if any, longer-term damage.
“So far, it looks like Ukraine is not the reason for the drop, despite the fears,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “So, if that is the case, future damage to the markets from the Ukraine crisis, if any, should be limited.”

Stock picks and investing trends from CNBC Pro:

What’s more likely pulling markets down is higher interest rates, he added, and that nevertheless, it’s important to consider the indirect impacts the Ukraine crisis could have on the market. Specifically, it could keep inflation higher than it might have been otherwise.

“Market volatility is normal, but the truth is that the decline we have seen so far is much less than might have been expected,” McMillan said. “That is due to the strength of the fundamentals, which should continue.”
In earnings, several big companies are scheduled to report Thursday. Anheuser-Busch, Alibaba, Discovery and Moderna will report before the opening bell. Coinbase, Block, Dell, Etsy and Beyond Meat are up after the close.
On the economic data front, investors are looking ahead to GDP and jobless claims before the opening bell and new home sales figures later in the morning Thursday.

WATCH LIVEWATCH IN THE APP More

Signage at eBay headquarters in San Jose, California, U.S., on Monday, Aug. 9, 2021.
David Paul Morris | Bloomberg | Getty Images

Check out the companies making headlines in after-hours trading:
Booking Holdings — Shares of the travel booking site operator rose more than 2% in after-hours trading following a strong quarterly earnings report. The company reported a profit of $15.83 per share, which beat analysts’ estimates by $2.19, according to Refinitiv. Quarterly revenue of $2.98 billion was higher than the expected $2.85 billion.

EBay — The ecommerce giant saw shares tumble more than 7% despite the company reporting a quarterly earnings beat, after it issued earnings and revenue guidance for both the first quarter and the full year that fell below estimates.
RealReal — The luxury consignment marketplace saw its stock whipsaw during extended trading after reporting a wider-than-expected quarterly loss. Revenue of $145 million for the quarter topped estimates of $135 million, according to Refinitiv. The company also issued upbeat current-quarter revenue guidance.
Allbirds — The shoe maker’s shares fell 7% after the company reported a quarterly loss of 9 cents per share, in line with estimates. Revenue of $97.2 million beat estimates of $91.8 million.
Bath & Body Works — After reporting quarterly results and an executive shuffle, Bath & Body Works saw its shares fall 3% in extended trading. CEO Andrew Meslow will step down effective May 12 and Sarah Nash, chair of the board, will take over in the interim.

WATCH LIVEWATCH IN THE APP More

Watch Daily: Monday – Friday, 3 PM ET

Bitcoin fell to a two-week low Tuesday after Russia ordered troops into two separatist regions in eastern Ukraine.
Geopolitical tensions and climbing inflation are among the key factors weighing down on bitcoin’s price.
That’s led analysts to question whether its status as a form of “digital gold” still rings true.

A key investment case for bitcoin is deteriorating as geopolitical uncertainty and rising inflation hammer cryptocurrency prices.
The price of bitcoin fell to a two-week low Tuesday after Russian President Vladimir Putin ordered troops into Donetsk and Luhansk, two breakaway regions in eastern Ukraine, shortly after declaring them as independent.

Bitcoin is often referred to as “digital gold” by its backers. The term refers to the idea that bitcoin can provide a store of value similar to gold — one that’s uncorrelated with other financial markets, like stocks.
Bitcoin bulls also see the cryptocurrency as a “safe haven” asset that can serve as a hedge against global economic uncertainty and increasing prices, which reduce the purchasing power of sovereign currencies like the U.S. dollar.
With inflation at historic highs, you’d expect this would be bitcoin’s time to shine — U.S. consumer prices last month rose the most since February 1982, according to Labor Department figures.
Instead, the cryptocurrency has lost almost half of its value since reaching an all-time high of nearly $69,000 in November. That’s led analysts to question whether its status as a form of “digital gold” still rings true.

“Bitcoin is still early in its maturity curve to be firmly placed in the category of ‘digital gold,'” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

Safe haven or risk asset?

The latest declines for bitcoin came in tandem with a rout in global stocks, with the S&P 500 closing out Tuesday’s session in correction territory. Bitcoin’s price has increasingly been tracking moves in the stock market, with correlation between bitcoin and the S&P 500 steadily rising.

Experts say cryptocurrencies have become more closely linked to other speculative parts of the market such as tech stocks, which are falling due to fears that lofty valuations may come down as the Federal Reserve and other central banks begin to hike interest rates and wind down their huge stimulus packages.
“The correlation between crypto and stocks has been high over the last few months on both inflation-related macro news and the Russia-Ukraine geopolitical situation,” Chris Dick, a quantitative trader at crypto market maker B2C2, told CNBC.
“This correlation shows that bitcoin is firmly behaving like a risk asset at the moment — not the safe haven it was touted to be a few years ago.”
In fact, gold has actually been outperforming bitcoin lately. Spot rates for the precious metal reached their highest levels since June 1 on Tuesday, climbing as high as $1,913.89 per troy ounce.

“Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch enemy, gold,” John Roque, head of technical strategy at 22V Research, said in a research note Monday.
“We’re looking for Bitcoin to get back to 30,000 and then break below there and we continue to expect gold will make a new all-time high.”

‘Crypto winter’

Bitcoin’s slump has resulted in increased talk about a prolonged bear market known as “crypto winter.” The last such occurrence of this took place during late 2017 and early 2018, when bitcoin plunged as much as 80% from then-record highs of close to $20,000.

Not all analysts are convinced the latest downturn in digital currency prices is indicative of a crypto winter, though, with many saying market conditions have changed. There are now plenty of institutions holding bitcoin which, according to experts, is one reason for why it’s become more closely correlated with stocks.
“The adoption of cryptocurrencies by investors from traditional asset classes is the driving force behind bitcoin’s correlation with equities,” B2C2’s Dick said. However, he added: “This relationship has the potential to be broken at any time given the different fundamentals for each market.”
To compete more effectively with gold as a store of value, bitcoin needs to achieve more widespread adoption, according to Luno’s Ayyar.
“The fundamentals have always made sense — limited supply currency not affiliated with any nation state,” he said.
“But bitcoin needs to undergo its due process of monetization, where it’s held by a large enough pool of participants — more retail flow, larger institutions adding bitcoin to their balance sheets, [and] potentially more nation states after El Salvador buying Bitcoin.” More

“We’re executing our strategy. And our strategy is working,” Solomon said.
Shares of Goldman Sachs have fallen 10% to start the year, a bigger decline than rivals Morgan Stanley and JPMorgan Chase.
The stock also trades at a cheaper earnings multiple than some of its peers.

David Solomon, chief executive officer of Goldman Sachs & Co., speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019.
Kyle Grillot | Bloomberg | Getty Images

Goldman Sachs’ shift toward the steadier segments of the banking industry is working, even if that success is not yet reflected in the bank’s stock price, CEO David Solomon told CNBC’s Jim Cramer.
“I think people are concerned that the capital markets environment is going to be less robust going forward in 2022-2023. But … we are extremely confident that we can deliver, over the next three years, mid-teens returns for our shareholders,” Solomon said in an interview that aired Wednesday on “Squawk on the Street.”

“We’re executing our strategy. And our strategy is working,” he added.
Shares of Goldman Sachs have fallen 10% to start the year, a bigger decline than rivals Morgan Stanley and JPMorgan Chase. The stock also trades at a cheaper earnings multiple than some of its peers.
“What we’re really focused on for our shareholders is the consistency of returns over time, the durability of growth over time, and compounding our growth value,” Solomon said.

Stock picks and investing trends from CNBC Pro:

The consistency of returns is a key theme for investment banks this year, after strong equity returns and a boom in special purpose acquisition companies — or SPACs — helped drive a solid performance for that part of the business last year.
Solomon said that equity activity has come down “meaningfully” but that the mergers and acquisitions segment of the business is still strong. Overall, banking activity appears better than 2019 but down from 2021, he said.

Meanwhile, Goldman has invested in the wealth and asset management businesses, which can provide a more predictable revenue stream.
“Capital markets revenues are hard to predict in any given year, and the market is clearly saying that it would like a more diversified Goldman Sachs, and so we’re moving in that direction,” Solomon said.
More of Cramer’s interview with Solomon will be shown on Wednesday’s “Mad Money” at 6 p.m. ET.

WATCH LIVEWATCH IN THE APP More

Check out the companies making headlines before the bell:
Lowe’s (LOW) – Lowe’s shares added 1.6% in the premarket after the home improvement retailer beat top and bottom-line estimates for the fourth quarter. Lowe’s earned $1.78 per share, 7 cents above estimates, and issued upbeat full-year guidance as demand for tools and building materials remained elevated.

Tenneco (TEN) – The automotive components maker agreed to be acquired by affiliates of Apollo Global Management (APO) for $20 per share in cash, compared with Tenneco’s Tuesday close of $9.98 per share. The deal is expected to close during the second half of this year. Tenneco soared 91.7% in premarket action.
Tupperware (TUP) – The maker of home storage products saw its shares slump 3% in the premarket following its quarterly earnings report. Tupperware’s revenue was above Street forecasts, but its adjusted profit of 38 cents per share missed estimates by 14 cents amid what the company called “challenging operating conditions.” Tupperware noted it saw both top and bottom-line growth in 2021 despite those challenges.
Palo Alto Networks (PANW) – The cybersecurity software company beat estimates by 9 cents with adjusted quarterly earnings of $1.74 per share and revenue that topped Street forecasts as well. Palo Alto also gave a better-than-expected forecast, and its shares rallied 7.8% in premarket trading.
Virgin Galactic (SPCE) – The space tourism company’s stock jumped 4.1% in premarket action after it reported a narrower-than-expected quarterly loss and improvement in its cash position.
Stellantis (STLA) – The automaker beat its profit targets in the first year following the merger of Fiat Chrysler and Peugeot parent PSA Group. It also said it was realizing projected benefits from that combination sooner than originally expected. Its stock surged 6.3% in the premarket.

GlaxoSmithKline (GSK), Sanofi (SNY) – GlaxoSmithKline rose 1.7% in the premarket and Sanofi was up 1.5% following news that the two companies would submit their Covid-19 vaccine to global drug regulators for approval.
Caesars Entertainment (CZR) – The casino operator’s stock jumped 4.5% in premarket trading after the company reported a 63% jump in revenue compared with a year ago, and a narrower loss.
Mosaic (MOS) – The fertilizer producer’s shares slid 5.6% in premarket action after the company’s quarterly earnings and revenue fell below analyst forecasts. Mosaic said it expects upward pricing momentum to continue.
Quest Diagnostics (DGX) – The medical lab operator’s stock was down 2.1% in the premarket after UBS downgraded it to “neutral” from “buy.” UBS cited risk to meeting management’s earnings target for fiscal 2023, given the company’s level of investment in growth.
Kodiak Sciences (KOD) – The drugmaker said a mid-to-late stage trial of its experimental eye drug failed to show it was not inferior to Regeneron’s (REGN) Eylea macular degeneration treatment. Kodiak tumbled 69.2% in premarket trading while Regeneron jumped 4.5%.

WATCH LIVEWATCH IN THE APP More

Crypto companies like Polygon and Circle are hiring top talent from Big Tech firms, enticing them with the pitch of working on the next “big thing” in tech — Web3.
The Web3 movement proposes overhauling the internet in a way that would move online services over to decentralized technologies like blockchain.
Tech executives are being drawn to the crypto industry due to its rapid growth and lucrative compensation packages, according to experts.

YouTube, Facebook, Instagram and WhatsApp apps displayed on a smartphone.
Florian Gaertner | Photothek | Getty Images

Executives at tech giants like Google, Facebook and Amazon are quitting to take jobs in the buzzy world of crypto.
Blockchain platforms such as Polygon and Circle have hired top talent from Big Tech firms lately, enticing them with the pitch of working on the next “big thing” in tech — Web 3.0, or Web3.

Ryan Wyatt left YouTube earlier this month to lead a new gaming studio from Polygon. Wyatt had joined the Google-owned video site back in 2014 to head up a push into video games content and compete more aggressively with Amazon’s Twitch platform. 
“When I started at YouTube Gaming almost eight years ago, I was the first person there,” Wyatt told CNBC in an interview. “We didn’t have a team. People were really starting to show interest in gaming video.”
“I look at this opportunity very much the same way,” he added, describing the current stage of blockchain development as “early” and “exciting.”
The buzz surrounding Web3 has attracted some of the brightest minds in tech. The Web3 movement proposes overhauling the internet in a way that would move popular online services over to decentralized technologies like blockchain.

The list of Silicon Valley talent jumping ship for crypto also includes Sherice Torres, the former chief marketing officer of Facebook’s crypto and payments unit, Novi. She was hired by Circle in January. And Amazon cloud exec Pravjit Tiwana fled to join crypto exchange Gemini as its chief technology officer.

David Marcus, the former head of Novi, resigned late last year. While he’s yet to unveil his next move, Marcus has been singing the praises of Web3 on Twitter.
“I’ve never felt this connected to a community of builders like the crypto/web3 one,” Marcus tweeted last month.
Experts say tech executives are being drawn to the burgeoning industry in part due to its rapid growth.
“Naturally, people will want to work on what they view as the most exciting and innovative developments in the technology space, and currently, that is crypto and Web3,” Alex Bouaziz, CEO and co-founder of payroll software firm Deel, told CNBC.
“Many are seeing it as the future of the tech industry, in the same way that Facebook and Amazon were attractive in the past.”

Potentially lucrative career move

There’s another thing that’s attracting talent at Big Tech companies to Web3: money.
According to data from Blind, a social network for tech professionals, bitcoin exchange Coinbase offers as much as $900,000 a year for software engineers.
Investment into crypto companies has surged, meaning they’ve got much more cash to spare on lucrative compensation packages for big hires. Blockchain start-ups raised a record $25 billion in venture capital last year, according to CB Insight figures.

Tech start-ups also typically let staff own a piece of their company through stock option schemes. With valuations for private crypto companies soaring, that means early employees could be in line for a big payout in the event of a takeover or initial public offering.
And the trend doesn’t just apply to the U.S.
Recruitment firm Hays says it’s seeing crypto companies target talent from the likes of Facebook, Amazon and Apple in the U.K. and Ireland, too.
“As more crypto/Web3 companies emerge, we expect the market for tech talent across all levels to become even more competitive,” James Hallahan, director of U.K. and Ireland for Hays’ technology division, told CNBC.

Web3 has its skeptics

Web3 is still a loosely defined term. It broadly refers to initiatives aimed at building a decentralized version of the internet based around crypto networks.

In theory, platforms could reward users for their posts through blockchain-native tokens, flipping the advertising-fueled model of services like Facebook and YouTube on its head.
But Web3 has drawn criticism from some big names in Silicon Valley. Twitter co-founder Jack Dorsey argues it’s too centralized and controlled by a handful of venture capitalists, while Tesla CEO Elon Musk views it as more of a “marketing buzzword” than reality.
However, Wyatt said that when he started at YouTube, people were skeptical about the idea of watching others playing video games — even “endemic gamers.” Now, gaming is the second-biggest vertical on YouTube, according to Wyatt.
Similarly, he thinks that some of the backlash against crypto and Web3 will subside as more fleshed-out experiences, like blockbuster video games and social apps, start to get rolled out.
But don’t expect tech giants to take the challenge lying down.
Meta started developing its Novi crypto wallet in 2019, and is reportedly considering rolling out new tools for non-fungible tokens, or NFTs.

WATCH LIVEWATCH IN THE APP More

Fourth-quarter net income attributable to shareholders came in at £1.12 billion, outstripping a mean forecast of £756.5 million, according to Refinitiv data.
The figures marked a significant improvement from the £1.53 billion net profit reported in 2020 and £220 million in the fourth-quarter of that year, as the U.K. navigated fresh nationwide Covid-19 lockdowns.

Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. 1 Canada Square, on the Isle of Dogs on November 05, 2020 in London, England.
Dan Kitwood | Getty Images News | Getty Images

LONDON — Barclays on Wednesday reported a full-year net profit of £6.38 billion ($8.67 billion) for 2021, ahead of analyst expectations of £5.75 billion, as its corporate and investment banking division boomed.
Fourth-quarter net income attributable to shareholders came in at £1.12 billion, outstripping a mean forecast of £756.5 million, according to Refinitiv data.

The figures marked a significant improvement from the £1.53 billion net profit reported in 2020 and £220 million in the fourth-quarter of that year, as the U.K. navigated fresh nationwide Covid-19 lockdowns.
The British lender endured a turbulent final quarter of 2021, with longtime CEO Jes Staley resigning in November following an investigation by regulators into his relationship with Jeffrey Epstein. He was replaced by C.S. Venkatakrishnan.
After the bank’s third-quarter earnings, Staley said 2021 was going to be “quite a year” for Barclays, as a significant boost from its corporate investment banking division continued to propel the group’s return on tangible equity — a key ratio used to assess profitability.

Stock picks and investing trends from CNBC Pro:

Profit before tax in the corporate and investment bank hit a record £5.8 billion, including record investment banking fees and equities income.
Here are the other financial highlights:

Common equity tier one capital (CET1) ratio was 15.1%, down from an all-time high of 15.4% at the end of the third quarter and equal to 15.1% in the final quarter of 2020.
Return on tangible equity (ROTE) was 13.4%, compared to 14.9% in the third quarter and 3.2% for the fourth quarter of 2020.
Net interest margin (NIM) was 2.52%, compared to 2.61% at the end of 2020.
The bank released £700 million in credit impairment provisions, versus a £4.8 billion charge in 2020.
Full-year profit before tax was £8.4 billion, up from £3.1 billion in 2020.

Barclays CEO C.S. Venkatakrishnan said in a statement Wednesday that 2021 was the year in which the bank’s strategy set out in 2016 came to fruition, with double-digit return on tangible equity, a “well-capitalised balance sheet” and strong profit performance even against the backdrop of the pandemic.
“I am proud that we have delivered this resilient performance while continuing to support our clients and customers through another year of COVID-19 related challenges,” Venkatakrishnan said.
“Taken together, our 2021 performance has enabled us meaningfully to increase returns to our shareholders, with £2.5 billion of excess capital returned via a total dividend of 6.0 pence per share and £1.5 billion of announced share buybacks.”

WATCH LIVEWATCH IN THE APP More

Signage outside Palo Alto Networks headquarters in Santa Clara, California, U.S., on Thursday, May 13, 2021.
David Paul Morris | Bloomberg | Getty Images

Check out the companies making headlines in after-hours trading:
Palo Alto Networks — Shares of the cybersecurity company gained 6% during extended trading Tuesday following Palo Alto’s second-quarter earnings report. The company earned $1.74 per share excluding items on $1.32 billion in revenue. Analysts surveyed by Refinitiv were expecting $1.65 per share on $1.28 billion in revenue.

Range Resources — Range Resources jumped more than 5% in the wake of the company’s fourth-quarter results. The energy company earned 96 cents per share excluding items, on $1.57 billion in revenue. Analysts surveyed by StreetAccount were expecting the company to earn 97 cents per share.
Virgin Galactic — Shares of the space company gained more than 3% after Virgin Galactic reported a smaller-than-expected loss during the fourth quarter. The company lost 31 cents per share compared to the 35-cent loss analysts surveyed by Refinitiv were expecting. Revenue, however, missed estimates. The company posted sales of $141 million, while Wall Street was expecting $300 million.
Mosaic — Mosaic shares slid more than 6% following the company’s latest earnings report. Mosaic posted earnings of $1.95 per share excluding items on $3.84 billion in revenue. Analysts surveyed by StreetAccount were expecting the company to earn $1.97 per share on $3.9 billion in revenue.

WATCH LIVEWATCH IN THE APP More