Today’s Top Stock Market News, April 22, 2022

 

Stock Market Futures Decline Following Fed Chair Jerome Powell’s Hawkish Remarks U.S. stock futures are on the decline as we approach the week’s end. Investors are evaluating the latest cyclical business earnings, which suggest that consumers are handling inflation better than expected, with companies like Tesla (NASDAQ: TSLA) and American Airlines (NASDAQ: AAL) exceeding estimates. However, Federal Reserve Chairman Jerome Powell’s update on reining in inflation has pointed to a likely half-point rate hike next month, causing most major stock indexes to erase earlier gains by the closing bell yesterday. Analysts are already providing their insights as investors assess all this information over the weekend. LPL Financial’s asset allocation strategist, Barry Gilbert, commented on the Fed’s recent Beige Book, stating that local U.S. businesses remain resilient despite elevated uncertainty. He added that while inflation, COVID, and the conflict in Ukraine would keep uncertainty high in the near term, there are prospects for growth in the second half of the year if these challenges can be navigated. In addition to these factors, investors are also considering today’s stock market news. As of 6:38 a.m. ET, Dow, S&P 500, and Nasdaq futures are trading lower by 0.41%, 0.42%, and 0.47%, respectively.

Snap Exceeds Expectations in Daily Active User Count in Latest Quarterly

Update Snap (NYSE: SNAP) released its first fiscal quarter earnings after yesterday’s closing bell. The social media camera company reported a loss per share of $0.02, slightly below Wall Street’s estimate of $0.01 earnings per share. However, Snap generated total revenue of $1.06 billion, just below consensus forecasts of $1.07 billion, but marking a 38% year-over-year increase. The highlight of Snap’s earnings report was its global daily active users (DAUs), which reached 332 million for the quarter, surpassing analyst expectations of 330 million and representing an 18% year-over-year growth. Snap anticipates this momentum in its user base will continue into the current quarter, with a forecast of approximately 344 million DAUs, above the estimated 341.4 million. Despite user growth, Snap expects challenges ahead due to various macroeconomic headwinds such as supply chain disruptions, inflation, and labor shortages affecting its customers’ advertising budgets.

Qualtrics Thrives on Subscription Revenue Surge

Qualtrics (NASDAQ: XM), an experience management firm, reported its first fiscal quarter results after yesterday’s closing bell. The company reported a net loss of $292.3 million alongside revenue of $335.6 million, reflecting a 41% year-over-year increase in revenue. Particularly notable is the 50% year-over-year growth in subscription revenue. CEO Zig Serafin described the first quarter as “outstanding” and highlighted the demand for experience management services as companies of all sizes navigate an uncertain business environment. He emphasized the company’s commitment to long-term growth while maintaining a positive non-GAAP operating margin. Qualtrics’ performance suggests rising demand for its experience management services, making XM stock potentially appealing to long-term investors.

Warner Bros. Discovery Closes CNN+ and Focuses on Core Streaming Platform

Warner Bros. Discovery (NASDAQ: WBD) has decided to shut down its CNN+ streaming service on April 30, less than a month after its launch. This strategic move aims to better integrate CNN into Warner Bros. Discovery’s broader streaming offering, including news, sports, entertainment, and nonfiction content. According to CNN Worldwide CEO Chris Licht, this decision is part of a broader strategy to strengthen CNN within Warner Bros. Discovery’s streaming approach. The company plans to enhance its core news network offerings and expand CNN Digital. As Warner Bros. Discovery leverages this segment of the streaming market, WBD stock could attract attention.

Honda and General Motors Collaborate on Three New EV Platforms by 2030 Honda

(NYSE: HMC) and General Motors (NYSE: GM) are making significant strides in the electric vehicle (EV) sector. The two automotive giants plan to develop three dedicated EV platforms by 2030 through joint initiatives. Honda’s global head of electrification, Shinji Aoyama, revealed that the company intends to launch a mini EV in Japan by 2024, followed by a full-sized commercial EV in North America by 2026. GM is also assisting Honda in developing two premium electric SUVs for North America, expected to be released by 2024. These vehicles will use GM’s Ultium battery technology. Honda aims to produce two million EVs globally by 2030, targeting markets such as North America, China, and Japan, potentially heating up interest in HMC stock.



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