Stock Market Futures On The Decline On Inflation And Labor Shortage Fears
Stock market futures are drifting lower on Tuesday morning after a record session by the broader stock market. Even as corporate earnings continue to build a case for the market bulls, factors suggesting otherwise are piling up. To point out, there are concerns of ongoing supply chain bottlenecks, shortages, and cost pressure weighing in on the market now. As such, the upcoming holiday season could be a true test of how well companies are weathering the current tailwinds.
Echoing all of this is Pacer ETF’s President Sean O’Hara. He says that the current momentum in year-over-year earnings is not “terribly surprising”. O’Hara, however, notes, “I think what we need to see going forward is, is it sustainable, or are some of these outside factors going to be a bigger challenge than we expect?”
Alternatively, there are also those who would argue that the ongoing economic recovery and strong consumer spend could further uplift top-line figures. Regardless of which side you fall under, the stock market today is brimming with exciting news to digest. As of 6:23 a.m. ET, the Dow, S&P 500, and Nasdaq futures are edging lower by 0.04%, 0.08%, and 0.21% respectively.
Coca-Cola Closes $5.6 Billion Bodyarmor Acquisition
Coca-Cola (NYSE: KO) is making headlines in the stock market this week thanks to its latest play. Namely, the beverage company is now the owner of sports drink maker Bodyarmor. Through a massive $5.6 billion deal, its largest brand acquisition to date, Coke would be gaining plenty. In detail, the company would be increasing its market share in the sports drink category significantly. Given Bodyarmor’s reputation as a supposedly healthier sports drink, this could be a timely play by Coke. In fact, it is currently the second-largest contender in the global sports drink category behind PepsiCo’s (NASDAQ: PEP) Gatorade.
According to Coke, Bodyarmor’s retail sales for the fiscal year could stack up to over $1.4 billion. Should this be the case, it would mark a significant 50% year-over-year jump in sales. Additionally, Bodyarmor co-founder Mike Repole is now working closely with Coke to further expand its position in the sports drink market. By and large, all this would line up with Coke’s current overhaul of its entire portfolio. As consumer trends shift towards healthier alternatives, this latest acquisition could provide Coke with more revenue streams. With all that said, it would make sense that investors are keeping an eye on KO stock now.
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Rivian Eyeing Valuation Of Over $54 Billion As News Of Amazon Backing Breaks
Elsewhere, things continue to heat up in the booming electric vehicle (EV) industry today. For the most part, the current EV buzz name in the market this week would be EV start-up Rivian Automotive. To begin with, an announcement from e-commerce giant Amazon (NASDAQ: AMZN) last week has and continues to generate hype around Rivian’s potential IPO. With this upcoming name in the EV field receiving backing from both Amazon and Ford (NYSE: F), I can understand the hype. After all, it is not surprising to see newcomers smoke even some of the top EV manufacturers in the market now. For example, we could take a look at Lucid Motors (NASDAQ: LCID) that recently posted EV battery ranges surpassing Tesla (NASDAQ: TSLA).
Now, back to Rivian. According to an amended prospectus filed with the U.S. SEC yesterday, the firm is expecting a market valuation of up to $54.6 billion in its IPO. In essence, the company plans to offer 135 million shares priced between $57 and $62. Furthermore, the firm is reportedly looking to go public soon according to CNBC’s sources. This will see Rivian’s shares trading on the tech-heavy Nasdaq composite under the ticker “RIVN”. All in all, there seems to be no shortage of excitement around RIVN stock’s upcoming debut.
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Activision In-Play After The Closing Bell With Its Latest Quarterly Earnings Call
Among the notable names reporting their latest quarterly figures today would be Activision Blizzard (NASDAQ: ATVI). In brief, the company is a titan in the video game industry today. This is mostly thanks to its multi-generation spanning Call of Duty (COD)franchise catering to gamers across the board. Overall, Activision’s COD series is now available in various forms across gaming consoles, PCs, and even mobile phones. Given the immense rise in demand for its gaming offerings throughout the pandemic, ATVI stock could be in focus today.
To highlight, Wall Street currently sees Activision posting an earnings per share of $0.70 on revenue of $1.88 billion. Alternatively, the company expects earnings of $0.64 on revenue of $1.97 billion. Differences aside, Activision continues to sustain growth amidst reopening trends. This would be thanks to its leading COD, Candy Crush, and World of Warcraft offerings. The likes of which consumers have access to for free right now.
Not to mention, Activision is not sitting idly by on the operational front as well. Just last week, the company acquired Digital Legends, a Barcelona-based mobile game development studio. According to Activision, the firm will be put to work on its latest COD mobile title. Seeing as the mobile gaming scene is among the most accessible for consumers today, this would be a smart move by Activision.
Earnings To Note In The Stock Market Today
Adding to all the eye-turning news in the stock market now, numerous firms are reporting their latest quarterly earnings today. This is apparent in both the pre-and post-market hours. For those looking at pre-market earnings, we have a healthy mix of companies on tap. This includes but is not limited to Pfizer (NYSE: PFE), Corsair (NASDAQ: CRSR), BP (NYSE: BP), ConocoPhillips (NYSE: COP), Estee Lauder (NYSE: EL), and Generac (NYSE: GNRC).
Following that, the case for earnings after today’s closing bell looks similar as well. In particular, the likes of Digital Turbine (NASDAQ: APPS), Devon Energy (NYSE: DVN), Zillow (NASDAQ: ZG), and T-Mobile (NASDAQ: TMUS) among others are in focus. With all that said, investors have plenty to consider in the stock market today.
