Finance

Take a look at some of the biggest movers in the premarket:
Tesla (TSLA) – Tesla surged 7.4% in the premarket following news that it delivered 308,600 vehicles during the fourth quarter, well above the consensus estimate of 263,026. The quarter’s deliveries were 70% above year-ago levels and about 30% higher than the prior quarter.

McDonald’s (MCD) – McDonald’s was upgraded to “overweight” from “neutral” at Piper Sandler, which points to the restaurant chain’s ability to deliver on increasing preferences for drive-through and elevated demand for chicken and hamburger offerings. McDonald’s rose 1.1% in premarket trading.
Nio (NIO) – Nio gained 2.2% in the premarket after the China-based electric vehicle maker reported December deliveries of 10,489 vehicles, up 50% from December 2020.
Xpeng (XPEV) – Xpeng – another China-based EV maker – rallied 2.5% in premarket trading as it, too, exceeded estimates by delivering 16,000 vehicles last month. That was up 181% from a year earlier.
Li Auto (LI) – Li Auto delivered 14,087 electric vehicles in December, a gain of 130% year-over-year, matching its fellow China-based EV makers. Li Auto shares added 2.8% in premarket action.
ODP (ODP) – ODP jumped 3.1% in premarket trading after it announced the sale of its CompuCom unit in a deal valued at up to $305 million. The Office Depot and OfficeMax parent also added $200 million to its stock buyback program.

PayPal (PYPL) – PayPal gained 1.9% in the premarket, following a BMO upgrade to “outperform” from “market perform” based on the payment service’s current valuation.
Wells Fargo (WFC) – The bank’s shares added 1.4% in premarket trading after Barclays upgraded Wells Fargo to “overweight” from “equal weight.” Barclays expects banks to outperform the market in 2022 as net interest margins improve off historic lows.
Advanced Micro Devices (AMD) – The chipmaker was one of several semiconductor stocks named as “top picks” at Goldman Sachs, which said AMD is among the companies that will see continued strength as sector outperformance becomes more muted in 2022. AMD rose 1.2% in the premarket. The other semiconductor “top picks” were Marvell Technology (MRVL), up 1.2% in premarket trading, and Micron Technology (MU), up 0.9%.
Callaway Golf (ELY) – The golf equipment maker was named a “top pick” at Compass Point, which said Callaway is on an “operational roll” with growth expected across all its businesses in 2022. Callaway added 1.9% in the premarket.

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FDIC Chair Jelena McWilliams said she is resigning effective Feb. 4.
Vice Chairman Martin Gruenberg will become acting chair, giving President Joe Biden a stronger hand over bank regulation.
The move comes as Biden looks to fill another key regulatory post, the Federal Reserve’s vice chairman for supervision, who oversees the financial system.

Jelena McWilliams, chair of the Federal Deposit Insurance Corporation (FDIC), during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., U.S., on Tuesday, Aug. 3, 2021.
Al Drago | Bloomberg | Getty Images

Jelena McWilliams, the head of the Federal Deposit Insurance Corporation and a holdover Trump appointee, said Friday she intends to leave her position in early 2022.
In a surprise announcement, McWilliams said she is resigning effective Feb. 4.

The move gives President Joe Biden another opportunity to strengthen his hand over bank regulation. McWilliams has been with the FDIC since 2018 and recently sparred with congressional Democrats over proposed changes to how the agency handles bank mergers.
Democrats hold a majority on the board, and with Vice Chairman Martin Gruenberg now set to take over as acting chair, they have sway at the top. Gruenberg has spoken out against the deregulatory actions taken over the past several years at the Federal Reserve that also have drawn sharp criticism from firebrand Sen. Elizabeth Warren, D-Mass.
McWilliams did not include a reason for her resignation, saying only that it was a “tremendous honor” to serve at the FDIC, the Fed and the Senate, where she held a variety of roles including chief counsel and deputy staff director for the upper chamber’s banking committee.
“Throughout my tenure, the agency has focused on its fundamental mission to maintain and instill confidence in our banking system while at the same time promoting innovation, strengthening financial inclusion, improving transparency, and supporting community banks and minority depository institutions, including through the creation of the Mission Driven Bank Fund,” she said in a statement.
“Today, banks continue to maintain robust capital and liquidity levels to support lending and protect against potential losses,” she added.
The move comes as Biden looks to fill another key regulatory post, the Fed’s vice chairman for supervision, who oversees the financial system. Recent reports have indicated Biden is likely to nominate former Fed Governor Sarah Bloom Raskin for the position.

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Paxlovid, a Pfizer’s coronavirus disease (COVID-19) pill, is seen manufactured in Ascoli, Italy, in this undated handout photo obtained by Reuters on November 16, 2021.
Pfizer | Handout | via Reuters

Check out the companies making headlines in midday trading.
Pfizer — Shares rose 1.1% after British regulators approved the use of Paxlovid, the drugmaker’s Covid-19 antiviral pill, for people over 18 with mild to moderate illness. The U.S. Food and Drug Administration last week authorized the use of Paxlovid for patients 12 and up with mild to moderate Covid who are most likely to end up hospitalized or not survive. 

Carnival, Norwegian Cruise Line — Cruise line stocks continued to struggle after the Centers for Disease Control and Prevention on Thursday said Americans should not travel on cruises, regardless of vaccination status. Carnival fell 2%, Norwegian Cruise Line retreated 1.3% and Royal Caribbean also dipped.
Peloton — Shares of Peloton slumped 3.8% after JMP Securities downgraded the stock to market perform from market outperform. JMP said consumer interest is waning in the at-home fitness company.
Coterra Energy — The oil company fell 2.8% on the final day of 2021. Coterra announced on Thursday that vice president and chief technology officer Kevin William Smith sold nearly 40,000 shares earlier this week.
Novavax — Shares of the drugmaker fell more than 7% after news that it extended manufacturing agreements with Korea-based SK bioscience. Novavax also received emergency use authorization for its Covid-19 vaccines in India.
Didi — The Chinese ride-hailing company continued to decline into the end of the year, falling 4.7% on Friday. Didi went public in June, but the stock has since sunk as Chinese regulators have cracked down on the company.
— CNBC’s Jesse Pound and Yun Li contributed reporting

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Check out the companies making headlines before the bell:
Exxon Mobil (XOM) – The energy giant signaled that it will report a fourth consecutive quarterly profit, thanks in large part to stronger oil and gas prices. The snapshot of fourth quarter results came in an SEC filing, ahead of the official earnings on February 1.

Advanced Micro Devices (AMD) – The chipmaker said it now expects to complete a $35 billion all-stock takeover deal for rival Xilinx (XLNX) during the first quarter of 2022, delayed from its prior 2021 year-end target. The companies said they have not yet received all of the needed approvals. Xilinx was down 2.2% in the premarket.
Pfizer (PFE) – British regulators have approved the use of Paxlovid – the drug maker’s Covid-19 antiviral pill – for people over 18 with mild to moderate illness.
Peloton (PTON) – The fitness equipment maker slid 1.3% in premarket action after JMP Securities downgraded the stock to “market perform” from “market outperform.” JMP cites declining website visits and page views.
Colfax (CFX) – The medical technology company is planning a shareholder meeting to approve a reverse stock split, with the exact ratio to be determined at a later date. Colfax fell 2.7% in premarket trading.
MP Materials (MP) – The maker of rare earth materials filed a shelf offering of up to $2 billion in debt securities. MP shares lost 1.1% in the premarket.
Lexicon Pharmaceuticals (LXRX) – The drug maker’s shares surged 6.5% in premarket trading after it submitted a new drug application to the FDA for its heart drug sotagliflozin, which is designed to reduce the risk of heart failure in diabetic patients.

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A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., December 28, 2021.
Andrew Kelly | Reuters

Stock futures were flat on Thursday night ahead of the final trading day of 2021.
Futures tied to the Dow Jones Industrial Average dipped 0.02%, while S&P 500 futures inched 0.02% higher and Nasdaq 100 futures rose 0.05%.

All three of the major averages faded into the close in regular trading Thursday, after trading slightly higher throughout the rest of the session. The Dow shed about 90 points, or 0.3%, to snap a six-day win streak. The S&P 500 dipped 0.3%, falling less than 1% from its record, which it hit in the previous session. And the Nasdaq Composite lost 0.2%.
There was little in news or economic data driving markets on Thursday, the second to last trading session of the year, and investors may be looking past the moves of the day as all of the major averages are still on track to finish both the week and the month higher.
“These days matter a little bit less,” Sylvia Jablonski, chief investment officer at Defiance ETFs, told CNBC’s “Closing Bell” Thursday. “We’re at the end of the year, it’s a holiday – liquidity wanes a little bit, but we have a strong economy … there are a lot of positive sides to the market next year.”
However, market bull Chris Harvey, Wells Fargo Securities head of equity strategy, said he’s turning cautious looking to 2022.

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“We’ve been bull at year-end, we thought there’d be a melt-up, but now it’s time as we look at the landscape for more sobering thoughts,” he told CNBC’s “Fast Money.” “There’s this pervasive mentality that the market can bend, but can’t break. We do expect a 10% pullback next year either in 2Q or in the beginning of the summertime.”

He added, “We’re late in the cycle … we expect to see multiple compression, whether it’s due to deceleration of growth, the Fed getting more aggressive – or maybe what we’re going to see is a peaking of pricing. That can lead to a peaking multiples, and of course, a peaking of margins. So we’re a lot more conservative this year. We want people to think about the risk side of the equation first and then the return side.”
Cruise line stocks took a hit on Thursday after the Centers for Disease Control and Prevention recommended Americans avoid taking cruises, whether they’re vaccinated or not. Norwegian Cruise Line fell 1.4%.
Other travel stocks rebounded after a week of choppy trading driven by various development concerning the omicron variant. Penn National Gaming gained 4.4%. Wynn Resorts ticked up more than 2%.
Jobless claims for last week came in lower than expected at 198,000, the Labor Department reported Thursday. Economists surveyed by Dow Jones had projected 205,000.
There is no economic data expected on Friday.

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A pedestrian walks past Biogen Inc. headquarters in Cambridge, Massachusetts, on Monday, June 7, 2021.
Adam Glanzman | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.
Biogen — Shares of Biogen slid 7% after Samsung denied a report in South Korean media that it was in talks to buy Biogen. The biotechnology stock had surged 9.5% on Wednesday on the report.

DiDi Global — The stock jumped 5.8% despite the company reporting a 1.7% decline in third-quarter revenue and a loss of $4.7 billion. Investors bought the dip in the Chinese ride-hailing company, which slid 8.2% Wednesday. It has also seen declines in 12 of the last 15 trading days.
RR Donnelley & Sons — The commercial printing stock rose 5.5% after the company received a non-binding acquisition proposal at $11 per share in cash. The unsolicited offer comes two weeks after R.R. Donnelley agreed to be bought by affiliates of Chatham Asset Management, its largest shareholder, for $10.85 per share.
Virgin Galactic — Shares of the space travel company rose 6% as Virgin Orbit, its satellite-launching spin-off, geared up to begin trading Thursday on the Nasdaq, following an approved merger earlier this week with the blank-check company NextGen Acquisition Corp.
Micron Technology — The semiconductor stock dipped 2.3% after the company warned of production delays due to new Covid shutdowns in Xi’an, China. Micron said in a blog post that additional restrictions by the local government “may be increasingly difficult to mitigate.”
Kanzhun — The platform for job seekers saw its shares jump 11.6% after Jefferies initiated coverage of the stock with a buy rating and a $44 price target, implying upside of about 38% from its closing price Wednesday.

ViacomCBS — Shares of the media giant rose 3.7% and were among the top gainers in the S&P 500 on Thursday. The rise followed a Financial Times report Wednesday that U.S. video streamers are set to spend $115 billion on content in 2022. Discovery shares gained 2%, while Fox rose about 1%. Netflix and Disney were slightly higher as well.
 — CNBC’s Hannah Miao and Jesse Pound contributed reporting

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Initial claims for unemployment benefits averaged about 199,000 a week in December. That’s a fourfold decrease from levels in January 2021 and lower than pre-pandemic levels in December 2019.
The dynamic points to a reduction in layoffs. Job openings are near record highs and there’s high demand for workers.
Surging Covid-19 cases amid the highly infectious omicron variant threaten to negatively impact the labor market in early 2022.

A recruiter hands out information to a job seeker during a job fair in Miami, Florida, on Dec. 16, 2021.
Eva Marie Uzcategui/Bloomberg via Getty Images

Initial claims for unemployment benefits ended 2021 near pre-pandemic levels, after an improving labor market led claims to fall roughly fourfold over the course of the year.
However, a surge in Covid-19 cases amid the spread of the highly contagious omicron variant threatens to negatively impact the labor market in early 2022.

Initial claims are a proxy for benefit applications after a layoff. Americans filed 198,000 unemployment claims last week, on a seasonally adjusted basis, the Labor Department said Thursday, its last update before the new year. That level is slightly higher than a 52-year low hit earlier in December.

Initial claims averaged 199,250 a week in December — more than four times less than the 849,000 average at the beginning of the year (in January 2021) and less than the pre-pandemic 225,000 average in December 2019, according to an analysis of data from the Federal Reserve Bank of St. Louis.
Overall, the reduction in claims points to fewer layoffs.
“With job openings as high as they are, and so many employers scrambling to retain and/or add personnel, job security might be viewed as one of the gifts of the current holiday season, at least from a worker’s point of view,” Bankrate senior economic analyst Mark Hamrick said in an analysis of jobless claims earlier this month.

Laid-off workers may also be ineligible to apply for unemployment benefits if they’d recently collected — and exhausted — state aid after an earlier layoff. The dynamic may somewhat mute the weekly claims figures, though the extent to which it’s occurring is unclear.

Federal pandemic-era benefit programs, which extended the duration of aid beyond the traditional 26-week maximum, ended on Labor Day. They had also offered an extra $300 a week.
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The U.S. unemployment rate has fallen “farther and faster” than expected, according to Jason Furman, an economist at Harvard University and economic advisor to former President Barack Obama.
The 4.2% unemployment rate in November was its lowest since February 2020.

The ratio of unemployed workers to job openings was 0.6 in November, the lowest level on record, Furman noted. Job growth has also been strong in 2021, with the economy adding 555,000 jobs a month, on average, since last December, roughly in line with expectations, he said.
However, the economy remains almost 4 million jobs shy of its pre-pandemic mark, according to the Bureau of Labor Statistics.

The supply of workers has also “disappointed,” Furman said. Roughly 2.4 million fewer workers are participating in the labor force relative to February 2020.  
The “realistic” unemployment rate, which adjusts for this decline in labor force participation and other factors, is 5.4%, or 1.9 percentage points higher than its pre-pandemic level, Furman said.
It’s unclear whether the labor-market trends will continue in coming weeks and months, given a surge in cases due to the highly contagious omicron Covid variant. Restaurants, entertainment venues and other businesses have closed as infections among staff have caused labor shortages.

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Check out the companies making headlines before the bell:
Biogen (BIIB) – Biogen slid 6.5% in the premarket after Samsung denied a report in the Korea Economic Daily publication that it was in talks to buy Biogen and combine it with its biotech unit. Biogen shares had jumped 9.5% Wednesday on that report.

JetBlue (JBLU) – The airline cut nearly 1,300 flights from its schedule through January 13, as it deals with a surge in Covid-19 infections among its flight staff. JetBlue was down 1% in premarket action.
Didi Global (DIDI) – The China-based ride-hailing company’s shares slid 3.2% in premarket trading after it reported a 1.7% decline in third-quarter revenue and a loss of $4.7 billion, stemming from a regulatory crackdown. Didi had slumped 8.2% Wednesday and has fallen in 12 of the past 15 trading days.
R.R. Donnelley (RRD) – The business communications and marketing services company received an unsolicited, non-binding acquisition proposal at $11 per share in cash. R.R. Donnelley already has an agreement in place to be acquired by affiliates of private equity firm Chatham Asset Management for $10.85 per share. Donnelley shares jumped 3.1% in premarket trading.
Virgin Orbit (VORB) – The satellite-launching spin-off of space travel company Virgin Galactic will begin trading under the Virgin Orbit name and ticker on Nasdaq today after shareholders of blank-check company NextGen Acquisition Corp. II approved the merger earlier this week.
Micron Technology (MU) – The memory chip maker’s stock lost 1.5% in the premarket after it warned that Covid-19 curbs in China’s Xian tech hub would impact production. Samsung Electronics – which is also one of the world’s biggest memory chip makers, issued a similar warning.

Johnson & Johnson (JNJ) – A booster dose of the J&J Covid-19 vaccine was found to be 85% effective in preventing hospitalizations in a South African study, which has yet to be peer-reviewed.
Microstrategy (MSTR) – The business analytics company’s stock rose 1.1% in the premarket, tracking a rise in bitcoin prices. Microstrategy has bitcoin holdings worth several billion dollars on its balance sheet.

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