BY THE NUMBERS
U.S. stock futures were mixed Friday, one day following an afternoon market sell-off on hawkish comments from Federal Reserve Chairman Jerome Powell, which wiped out strong morning gains. Rising bond yields, which continued Friday, hit the Nasdaq particularly hard Thursday, with the tech-heavy index dropping 2% in a second straight session of big losses. (CNBC)
The benchmark 10-year Treasury yield on Friday neared 3% as the short end of the yield curve saw the 5-year top that level as Powell confirmed what many other Fed officials have said lately that interest rates may need to be increased at a stronger pace to fight inflation. (CNBC)
During an International Monetary Fund panel discussion Thursday moderated by CNBC's Sara Eisen, the Fed chief said that "50 basis points will be on the table for the May meeting." The central bank raised rates by 25 basis points at its March meeting, the first hike in more than three years. The market expects rate increases at each of the remaining six meetings in 2022. (CNBC)
IN THE NEWS TODAY
Shares of Gap (GPS) sank roughly 15% in Friday's premarket, the morning after the clothing retailer cut its growth outlook due to increasing competition and more promotions. The company also announced that the CEO of its Old Navy division, Nancy Green, is leaving her post. In addition to Old Navy and its namesake brand, Gap is also behind the Banana Republic and Athleta lines. (CNBC)
* American Eagle's logistics 'frenemey network' pitch is paying off (CNBC)
Warner Bros. Discovery (WBD) is shutting down CNN+ at the end of the month, just weeks after the stand-alone streaming news service launched. The service was rolled out shortly before AT&T's (T) then-WarnerMedia unit and Discovery completed their merger on April 8. Warner Bros. (CNBC)
The Republican-led Florida Legislature has passed, and sent to Gov. Ron DeSantis, a bill seeking to dissolve a special district that allows Walt Disney (DIS) to self-govern within the outer limits of Orange and Osceola counties. DeSantis is locked in a bitter feud with Disney over the entertainment giant's denouncement of Florida's so-called Don't Say Gay law. (CNBC)
Just days after the Jan. 6, 2021 riot, House GOP leader Kevin McCarthy told a fellow Republican lawmaker, Wyoming Rep. Liz Cheney, that he would recommend to then-President Donald Trump that he resign, according to audio of a call obtained by MSNBC and aired Thursday night. (NBC News)
Wall Street executives are pouring millions of dollars into the Republican primary race for Pennsylvania's open U.S. Senate seat, making it one of the most expensive in the 2022 midterm elections. Television's Dr. Mehmet Oz and former Bridgewater CEO Dave McCormick lead in the polls. (CNBC)
President Joe Biden on Friday will mark Earth Day in Seattle, announcing new steps to make the nation's forests more resilient against the threat of wildfires and climate change. Biden will sign an executive order that calls for the government to undertake the first-ever inventory of mature and old-growth forests on federal lands. (USA Today)
Businesses are struggling to bring workers back to factories after weeks of Covid lockdowns in Shanghai. Nearly a month since virus restrictions began in earnest in China's biggest city, U.S. and European businesses report that less than half of their employees are able to return to work. (CNBC)
* Singapore is moving closer toward pre-Covid pandemic living (CNBC)
Goldman Sachs' (GS) long-awaited checking account is one step closer to reality. The bank is widening internal testing for the no-fee, interest-bearing account to all 20,000-plus of its U.S. employees, according to Stephanie Cohen, Goldman's global co-head of consumer and wealth management.
STOCKS TO WATCH
American Express (AXP) rose 1.2% in the premarket after reporting better-than-expected profit and revenue for the first quarter. Amex's results were helped by increased spending by millennial and Gen-X consumers as well as small and medium-sized businesses.
Verizon (VZ) earned an adjusted $1.35 per share for the first quarter, matching estimates, with revenue also essentially in line. Verizon lost 36,000 phone subscribers during the quarter, less than the 49,300 losses expected by analysts who were surveyed by FactSet. Verizon fell 1.4% in premarket trading.
Snap (SNAP) lost an adjusted 2 cents per share for its latest quarter, compared with consensus forecasts of a 1 cent per-share profit for the social media company. It also issued a conservative sales growth outlook for the current quarter, and the shares fell 1.1% in premarket trading.
Kimberly-Clark (KMB) jumped 3.8% in the premarket after reporting better-than-expected quarterly earnings and revenue. The consumer products giant said it was able to deal with a "volatile and inflationary" environment and raised its full-year organic sales forecast.
Boston Beer (SAM) reported a quarterly loss of 16 cents per share, compared with analysts' expected profit of $1.97 per share. The beer brewer's revenue missed estimates as shipment volume declined more than 25% from a year earlier and gross margins fell as well. Shares were down 3.2% in the premarket.
Anheuser-Busch InBev (BUD) will sell its stake in its Russian joint venture and take a $1.1 billion impairment charge as a result. The beer brewer suspended sales of its Budweiser brand in Russia last month following Russia's invasion of Ukraine. AB InBev fell 1.8% in Friday's premarket.
SAP (SAP) slid 4% in premarket trading after the German business software company said it would take a $300 million revenue hit due to its exit from the Russian market.
Cleveland-Cliffs (CLF) rallied 3.5% in premarket trading after beating top and bottom-line estimates for the first quarter. The steel and mining company also raised its average selling price forecast for the full year.
Schlumberger (SLB) beat estimates by a penny with an adjusted quarterly profit of 34 cents per share, and revenue also topped Wall Street forecasts. The oilfield services producer also raised its dividend by 40%, and its stock added 1.1% in premarket action.