Market Overview

#PreMarket Primer: Thursday, February 20: Facebook Makes Big Purchase With WhatsApp

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Market lost ground Wednesday and will likely open lower again Thursday.

The Dow lost about 89 points to close at 16,040.56. The S&P was down 0.6 percent, or about 12 points to close at 1,828.75, and the NASDAQ fell 0.8 percent to 4,237.95.

This morning, U.S. markets are indicated to open down. The Dow is 16 points lower, the S&P and NASDAQ are trending 2 points lower.

Related: Market Wrap For February 19: Stocks Close Lower, Nasdaq Ends Winning Streak

Top Stories

  • Facebook (NASDAQ: FB) purchases mobile messaging app, WhatsApp for $19 billion.
  • Tesla (NASDAQ: TSLA) soaring 10 percent on upbeat earnings.
  • Violence continues in Ukraine after short-lived truce is broken.

Asian Markets

Downbeat Chinese data sent Asian markets shapely lower Thursday. The Nikkei was down about 2.1 percent to close at 14,449.18 and the Hang Seng was up nearly 1.1 percent to finish at 22,394.08.

The Shanghai Composite closed 0.2 percent lower at 2,138.78 and the Kospi was 0.6 percent lower closing at 1,930.57.

European Markets

Chinese data, along with disappointing data from France, are sending European markets lower. The FTSE is 0.4 percent lower at 6,770.91and the DAX is 1.1 percent lower at 9,548.83. Finally, the CAC is 0.4 percent lower at 4323.01.

Commodities

Natural gas is modestly higher after hitting a five-year high yesterday. Other commodities are lower. WTI is flat at $103.24 while Brent is down 0.4 percent at $109.97. Natural gas is 0.3 percent higher at $6.16.

Gold is down about 0.4 percent at $1,314.00 and silver is lower by about one percent at $21.62. Copper is unchanged at $3.26.

Currencies

The euro is 0.3 percent lower against the dollar at 1.369 and the dollar is about 0.3 percent lower against the yen at 102.00

The pound is 0.2 percent lower against the dollar at 1.664 and the Aussie dollar is at 0.897 against the dollar—up about 0.2 percent.

Pre-Market Movers

Facebook is down more than two percent on acquisition rumors and Tesla is up about 10 percent on earnings.

Onconova Therapeutics (NASDAQ: ONTX) are down 35 percent while Meetme (NYSE: MEET) is up 16 percent and Altisource Residential (NASDAQ: RESI) is up 13 percent.

Notable Earnings

Earnings reports from Wednesday:

  • MGM Resorts (NYSE: MGM) reported fourth quarter EPS of -$0.08, missing the consensus of -$0.01. Revenue of $2.5 billion beat the consensus estimate of $2.46 million.
  • Tesla reported fourth quarter EPS of $0.33, beating the consensus estimate of $0.21. Revenue of $615.29 million missed the consensus estimate of $657.15.
  • Safeway (NYSE: SWY) reported fourth quarter EPS of $0.53, beating the consensus estimate of $0.58. Revenue of $11.3 billion missed the consensus estimate of $11.48 billion

The following companies will report today:

  • DIRECTV (NASDAQ: DTV) is projected to report its Q4 earnings at $1.28 per share on revenue of $8.47 billion.
  • Wal-Mart Stores (NYSE: WMT) is expected to report its Q4 earnings at $1.59 per share on revenue of $130.23 billion.
  • Hewlett-Packard Company (NYSE: HPQ) is estimated to post its Q1 earnings at $0.84 per share on revenue of $27.19 billion.
  • Groupon (NASDAQ: GRPN) is estimated to post its Q4 earnings at $0.02 per share on revenue of $718.04 million.
  • priceline.com (NASDAQ: PCLN) is projected to post its Q4 earnings at $8.29 per share on revenue of $1.52 billion.
  • Actavis plc (NYSE: ACT) is expected to report its Q4 earnings at $3.04 per share on revenue of $2.66 billion.

To read today’s full earnings calendar, click here.

Economics

Initial jobless claims reach the market at 8:30 AM ET and the Philly Fed Survey is released at 10:00 AM. The EIA Natural Gas report hits the markets at 10:30 AM and three and six-month bill announcements take place today.

Posted-In: Earnings News Eurozone Futures Commodities Forex M&A Pre-Market Outlook Best of Benzinga

 

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