5 things to know before the stock market opens on Friday, January 27
A US flag outside the New York Stock Exchange (NYSE) in New York City on January 26, 2023.
Andrew Kelly | Reuters
Here are the most important news investors need to start their trading day:
1. Roll
2. Bad times for Intel
Pat Gelsinger, CEO of Intel Corporation, testifies at the Semiconductor Trade, Science, and Transportation Senate Hearing titled “Developing Next Generation Technologies for Innovation” at the Russell Senate Office Building on Wednesday, March 23, 2022.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Intel posted a brutal quarterly earnings report after Thursday’s call. The bad news was everywhere you looked: earnings, margins, and revenues were down. In fact, it was the fourth straight quarter of a decline in the company’s sales. The tech giant is struggling with falling demand for personal computers, which has led to a costly overstock of chips. Intel did not provide forecasts for the full year, given the uncertainty around inflation and a possible recession. However, the company said it expects a loss in the current quarter compared to $1.13 per share the previous year. Intel shares fell about 9% after hours.
3. Not exactly child’s play
Hasbro board games “Monopoly” and “Yatze”.
Justin Sullivan | Getty Images
Even the holidays couldn’t help this toy giant. Hasbro doesn’t report fourth-quarter results until Feb. 16, but the toy maker is already warning investors it’s going to be bad. The company, whose brands include My Little Pony and Dungeons and Dragons, also said it would cut 1,000 jobs, or about 15% of its workforce. Hasbro said it expects to report fourth-quarter revenue of $1.68 billion, down 17% from a year earlier and well below Wall Street’s estimate of $1.92 billion. The company’s shares fell to the bell on Friday.
4. Bed Bath & Beyond by default
Customers come to the Bed Bath & Beyond Inc. store. in Norridge, Illinois.
Christopher Dilts | Bloomberg | Getty Images
Bed Bath and more goes to pay. The struggling home improvement retailer said Thursday it defaulted on a credit line with JPMorgan and warned it lacked cash to pay off its debts. Once again, Bed Bath has warned of a potential bankruptcy filing that is becoming more likely every day. Its shares fell on Thursday and are down about 80% in the last 12 months despite the best efforts of some die-hard meme traders. Its market value is only $295 million. The Board of Bed Bath also appointed Carol Flaton, known as restructuring expert, as an independent director, effective immediately. She will be paid $30,000 a month in “cash up front.” according to securities documentation.
5. Zelensky demands new sanctions
Ukrainian President Volodymyr Zelensky speaks via video link during a meeting of defense ministers at Ramstein Air Base in Germany to discuss how to help Ukraine defend itself amid Russia’s ongoing attack on Ukraine, in Kyiv, Ukraine, January 20, 2023.
Press Service of the President of Ukraine | Reuters
Russia stepped up its airstrikes on Ukraine after claims that Germany and the US would send tanks to help defend Ukraine. President of Ukraine Volodymyr Zelensky also urged new sanctions against Russia. “This Russian aggression can and should be stopped only with adequate weapons. A terrorist state will understand nothing else. Weapons on the battlefield. A weapon that protects our skies,” he said on Thursday. “New sanctions against Russia, that is, political and economic weapons. And a legal weapon – we need to work even harder to create a tribunal for the crime of Russian aggression against Ukraine.”
– CNBC’s Carmen Reinicke, Keith Leswing, Jordan Novet, Sarah Witten, Gabriel Fonrouge, Lilian Rizzo and Natasha Turak contributed to this report.
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