Stock Market Today Mid-Morning Updates
On Thursday, the Dow Jones Industrial Average is down 100 points. This comes after key data showed a stronger-than-expected increase in consumer inflation. In recent weeks, investors have so far found relief in strong earnings. This is especially after the Federal Reserve has taken a more aggressive stance on combating rising inflation. Could today’s inflation data put a stop to that relief? Today, Twitter (NYSE: TWTR) announced its latest financials. Fourth-quarter revenue reached $1.57 billion, up by 22% year-over-year, driven by an increase in advertiser demand and solid sales execution. The company also announced a new $4 billion stock buyback program.
Disney (NYSE: DIS) also reported a strong quarter, beating Wall Street estimates on both top and bottom lines. The company posted an adjusted earnings per share of $1.06, above the $0.63 per share estimates. Disney added 11.8 million new Disney+ subscribers last quarter, also beating expectations. It also reported a record profit from its theme parks this quarter. DIS stock is now up by 5% on today’s opening bell.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down 1.04% today while Microsoft(NASDAQ: MSFT) is also down by 1.87%. 3M (NYSE: MMM) and Nike (NYSE: NKE) are trading lower on Thursday. Among the Dow financial leaders, Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading lower as well at 1.16% and 0.064% respectively.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 1.49% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are down by 2.37% and 1.40% respectively today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened lower at 1.88% and 3.27% respectively.
Dow Jones Today: 10-Year Treasury Yields and CPI Rises To New Pandemic Era Highs
Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading 0.88%, 0.37%, and 1.45% lower. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 1.25% on Thursday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also ticking lower by 0.69%.
Today, the U.S. Treasury yields climbed after key inflation data showing that prices across a wide range of goods and services had soared in January. The yield on the 10-year Treasury yield jumped 6 basis points to 1.99%, the highest since August 2019. The yield on the 2-year Treasury bond, the most sensitive duration to interest rates, surged 10 basis points to 1.45%. This would likely put more pressure on the markets, with tech stocks, in particular, feeling a lot of pressure since the start of the year.
U.S. inflation accelerated in January, with the Consumer Price Index (CPI) registering a 7.5% jump in January. Consensus economists were expecting a 7.3% rise, according to data from Bloomberg. This would be the fastest rise since 1982, as well as an acceleration from the 7.0% year-over-year increase observed in December 2021. Core CPI, excluding food and energy rose 6% in January year-over-year, also slightly higher than estimates. The CPI would also be a key metric for markets since inflation is normally seen as a direct trigger for the Fed’s first pandemic-era interest rate hike. Officials say that they expect the first rate hike to be in March.
[Read More] Top Stock Market News For Today February 10, 2022
Twilio (TWLO) Stock On The Rise Following Notable Earnings Beat And Optimistic Guidance
Twilio (NYSE: TWLO) appears to be among the top gainers in the stock market at today’s open. Notably, this seems to be the result of the cloud tech company posting solid numbers in its latest quarterly. After yesterday’s closing bell, Twilio saw a loss per share of $0.20, better than Wall Street projections of $0.22. Moreover, the company also raked in a total revenue of $842.7 million for the quarter. To highlight, this is well above analyst expectations of $767.8 million. Through a combination of narrower-than-predicted losses and strong revenue, TWLO stock is now gaining by more than 10% today. The question now is whether or not investors should be jumping on the company’s shares amidst the current hype.
To put things into perspective, we could refer to the company’s full-year performance. Throughout the fiscal year, Twilio is looking at a total annual revenu of $2.8 billion. Chiefly, this translates to a year-over-year leap of 61%. According to CEO Jeff Lawson, continued momentum across Twilio’s two core platforms is to thank for this. This would be the company’s cloud communications platform alongside its customer data platform. Both of which “gives Twilio an unparalleled view into the customer journey,” while empowering Twilio’s clients. As businesses interact with consumers in the digital space more than ever, TWLO stock could be worth watching.
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Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition
In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. For the most part, this is likely thanks to the company’s latest announcements. Firstly, Datadog posted an earnings per share of $0.20 on revenue of $326.2 million for the quarter. These two figures would top consensus estimates of $0.11 and $291.42 million respectively. In particular, Datadog is currently looking at a massive year-over-year increase of 83.7% in total revenue.
To provide some context for these figures, it is important to know what Datadog does exactly. In essence, the company operates via a monitoring and security platform for cloud applications. Simply put, it is a cybersecurity firm with a focus on cloud environments. Through Datadog’s software-as-a-service solutions, organizations of varying sizes can engage in safe and efficient digital transformation and cloud migration. While all this is impressive, CEO Olivier Pomel believes that Datadog still has room to grow moving forward. He notes, “We continue to believe we’re in early days with our opportunities in observability. And we are just starting our efforts in cloud security and developer-focused products. We have much to do, and we’re excited about what we’re working on for 2022 and beyond.”
Not to mention, the company also completed its acquisition of CoScreen earlier today. In brief, CoScreen is a collaboration platform for technical teams. Through this play, Datadog now brings real-time collaboration capabilities to its clients. In practice, this adds seamless communication, incident response, and pair programming to engineers on the Datadog platform. After considering all this, it makes sense that investors are eyeing DDOG stock today.
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