Stock Market Futures Swing Towards Recovery Following Sell-Off
U.S. stock futures are rising in early morning trading today on Wednesday. This follows a rough trading day for markets across the board with the S&P 500 dipping into correction territory. With diminishing relations between Ukraine and Russia, investors appear to be taking a more cautious approach to riskier assets. Whether it be through sell-offs or rotations into more defensive sectors, this is evident. As the situation continues to develop, most would be wondering about the long-term impact of geopolitical issues on market growth.
Providing some insight into this is RSM International’s chief economist, Joe Brusuelas. He argues, “If the status quo holds, all we’re going to see is a very limited impact on growth and inflation. Should we see a full-fledged invasion followed by much tougher sanctions, then we’re going to be in a very different world.” Furthermore, Brusuelas also points out that the Federal Reserve alongside its global peers “are in a very difficult position now.” The analyst cites energy supply shocks alongside a slowing global economy for this observation. At the same time, investors also have plenty of stock market news to keep them on their toes today. As of 6:25 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.50%, 0.59%, and 0.91% respectively.
Roku Recovers Following Update From Citi Analysts
Roku (NASDAQ: ROKU) seems to be on the rebound in the stock market now. Overall, this could be thanks to a positive update from Citi (NYSE: C) analyst Jason Bazinet on ROKU stock. As it stands, the bank currently holds a Buy rating with a price target of $250 per share. For one thing, this would indicate a potential upside of over 100% from its current valuation. In general, Bazinet highlights that Roku’s latest quarterly results remain “broadly positive” despite the negative reception from investors. This would be the analyst referring to the sharp decline in ROKU stock after posting its financials. The likes of which, he believes, are due to the company’s “subdued” guidance for the fiscal year.
Even so, it is important to note the reasons for Roku’s latest figures and expectations. Namely, the streaming hardware and software giant is facing headwinds on the supply chain front. These supply chain dislocations alongside Roku’s efforts to invest towards long-term growth could be worth considering. Sure, smart TVs and other streaming tech would be harder to come by in the short term. However, Roku continues to be a key middle-person in the streaming space today. This is, of course, referring to the company’s role in facilitating subscriptions between watchers and other streaming services. Among the core names on this front would be Netflix (NASDAQ: NFLX), Amazon’s (NASDAQ: AMZN) Prime Video, and Apple’s (NASDAQ: AAPL) Apple TV+.
With all this in mind, some investors could see the current weakness in ROKU stock as a buying opportunity. If you consider the company’s role amidst the current broad-based cord-cutting trends, this is understandable. Accordingly, the focus could be on ROKU stock at today’s market open.
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Carrier Global In Focus After Posting Solid Annual Organic Sales Growth
Elsewhere, Carrier Global (NYSE: CARR) is among the main names in the green despite widespread sell-offs across the stock market now. The current uptrend in CARR stock follows the company’s latest mid-term outlook from its 2022 Investor Day event. In detail, the multinational home appliances firm currently sees year-over-year organic sales growth of between 6% to 8% for the current fiscal year. Additionally, it also sees double-digit growth in adjusted earnings per share over the same period as well. Because of this, investors appear to be keeping an eye on CARR stock now. According to CEO David Gitlin, the company also has a “very good handle,” on its inflationary issues. He also notes, “We’re 70% blocked on some of the things that we care about, like steel, aluminum, copper.”
On top of that, Carrier Global is also planning to drive its strategy by raising prices and optimizing its operations. Gitlin also highlights that increased automation hours and dual-sourcing supplies are among the company’s key plans to counteract inflationary pressures. That’s not all, the CEO also points out that Carrier Global is working on improving its balance sheet. By its latest estimates, the company’s debt is now less than $4 billion. This marks a significant improvement over its debt of $10 billion back in 2020 when the company first spun off. All this alongside the company’s ongoing acquisition of Toshiba’s heating, ventilation, and air conditioning division would put CARR stock in the limelight now.
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Exxon Lands New Gas Project Deal In Papua New Guinea
In other news, energy industry titan ExxonMobil (NYSE: XOM) is making headway in Papua New Guinea (PNG). Notably, the company now has the green light from the PNG government for its P’nyang gas project. According to ExxonMobil, the final investment decision is subject to approval by co-venturers on the project. Should things go as planned, the company expects the P’nyang project to deliver liquefied natural gas (LNG) via the construction of new upstream facilities. The likes of which will link seamlessly with its existing infrastructure in the region. The company mentions that the current agreement provides the “fiscal framework for the project and supports project scoping and evaluation.”
By ExxonMobil’s current estimates, the P’nyang field currently has up to 4.36 trillion cubic feet of gas. Considering the scale of the project, the company continues to work closely with the PNG government regarding its interest in purchasing additional equity as well. Within ExxonMobil’s timeline, work on the P`nyang oil field will commence following the Papua LNG project. It will extend the company’s construction activity in the region by an additional four years. As such, XOM stock could be turning heads now as investors consider the growth potential from this deal.
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Notable Earnings On Tap In The Stock Market Today
Not forgetting, we are still amidst a mostly positive earnings season now as well. For today, there remains an extensive array of companies posting earnings from across varying industries. In the pre-market, we have more retail players posting earnings. This includes Lowe’s (NYSE: LOW), Overstock (NASDAQ: OSTK), and TJX Companies (NYSE: TJX). Aside from that, Biocryst Pharmaceuticals (NASDAQ: BCRX), Monday.com (NASDAQ: MNDY), HollyFrontier (NYSE: HFC), and Jack-In-The-Box (NASDAQ: JACK) are on tap.
On the flip side, the post-market earnings section is leaning more towards tech firms. Companies reporting then are FuboTV (NYSE: FUBO), Magnite (NASDAQ: MGNI), eBay (NASDAQ: EBAY), Skillz (NYSE: SKLZ), and Lemonade (NYSE: LMND) among others. From developing political feuds to general news and earnings, there is no shortage of action in the stock market today.
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