BY THE NUMBERS
U.S. stock futures were little changed Friday, one day after the Dow posted its worst session of the year, slumping 622 points or 1.8%. The S&P 500 and the Nasdaq on Thursday sank 2.1% and 2.9%, respectively. The Nasdaq sank further into a correction. The Dow was down around 7% from January's highs. All three stock benchmarks were lower for the week heading into Friday's open. (CNBC)
Heightened tensions between Russia and Ukraine left investors confused and dumping risky assets and rotating into the perceived safety of bonds Thursday and Friday. The 10-year Treasury yield, which moves inversely to price, continued to move lower to around 1.94%. (CNBC)
While watching geopolitical developments, traders remain concerned about surging inflation and how the Federal Reserve plans to fight it. St. Louis Fed President James Bullard cautioned that without interest rates hikes, inflation could become an even more serious problem. Bullard has called for a full percentage point in rate increases by July. (CNBC)
IN THE NEWS TODAY
Moscow announced massive drills by its nuclear forces Friday amid soaring East-West tensions, as the U.S. issued some of its starkest, most detailed warnings yet about how a Russian invasion of Ukraine might unfold. The U.S. ALSO has warned that Russia could use false claims, including assertions about the conflict in eastern Ukraine, as a pretext for an invasion. (AP & CNBC)
* CNBC live blog: New reports of violence as Russians prepare fresh military drills
Virgin Galactic (SPCE) said Friday that investor Chamath Palihapitiya would step down from his roles as chairman and board member to focus on other commitments. Richard Branson's Virgin Galactic rose slightly in the premarket but closed down 10% in the prior session. The stock, which Palihapitiya helped take public more than two years ago in a SPAC deal, has cratered roughly 80% in the past 12 months. (Reuters)
Roku (ROKU) shares sank more than 25% in Friday's premarket, the morning after the video streaming device maker saw quarterly revenue fall short of forecasts, as an early pandemic boost in demand faded with the easing of Covid curbs. Roku also issued a weaker-than-expected outlook, citing higher component prices and supply chain disruptions. The stock was already down 68% in the past 12 months. (CNBC)
Shake Shack (SHAK) shares dropped 15% in the premarket after the burger chain forecast current quarter revenue below estimates as the omicron variant kept diners away and led to temporary closures. Shake Shack did report after the bell Thursday that sales for the just-ended quarter matched estimates and a per-share loss was narrower than expected. (CNBC)
Warren Buffet said, in a letter to journalists, Berkshire Hathaway (BRK.a) had "no prior knowledge" that Microsoft (MSFT) was working on a $68.7 billion takeover of Activision Blizzard (ATVI) before the conglomerate bought a stake in the videogame maker. (Barron's)
* Activision CEO Bobby Kotick has a second secret company that spent big money to back GOP campaigns (CNBC)
The Senate passed a short-term government funding bill, sending it to President Joe Biden's desk hours before an end of the day Friday shutdown deadline. Lawmakers hope to buy time to pass legislation to fund federal operations through Sept. 30. The stopgap bill will keep the government running through March 11. (CNBC)
* Education Department forgives $415 million in student debt for borrowers who attended for-profit schools (CNBC)
STOCKS TO WATCH
DraftKings (DKNG) tumbled 13% in the premarket, despite a narrower-than-expected quarterly loss and revenue that beat estimates. The sports betting company projects a wider-than-expected adjusted loss for the full year as costs continue to rise.
Bloomin' Brands (BLMN) beat estimates with quarterly earnings and revenue. The parent of Outback Steakhouse and other chains also reinstated its quarterly dividend and announced a new $125 million share buyback program. The stock surged 6.6% in premarket action.
Deere (DE) reported quarterly earnings of $2.92 per share, well above the $2.26 consensus estimate, with revenue also topping analyst forecasts. The heavy equipment maker also raised its annual profit forecast amid solid demand and higher prices.
Dropbox (DBX) beat estimates quarterly earnings and revenue. Paid user numbers and average revenue per user also came in above consensus, but the stock slid 6.3% in the premarket as guidance for current-quarter profit margin was slightly lower than expected.
DuPont (DD) finalized a deal to sell the majority of its materials unit to specialty materials maker Celanese (CE) in an $11 billion deal. DuPont jumped 4.1% in the premarket while Celanese gained 3.8%.
Pilgrim's Pride (PPC) slumped 14.8% in premarket trading after Brazilian meatpacker JBS dropped plans to buy the portion of the poultry producer that it doesn't already own. JBS holds an 80% stake in Pilgrim's Pride, but the two sides could not agree on terms of a deal for the remaining 20%.
Intel (INTC) CEO Pat Gelsinger told an investor gathering that the chipmaker is aiming to achieve double-digit annual revenue growth in three to four years. He also said Intel may be interested in participating in a potential consortium if one is formed to buy British chipmaker Arm. Intel fell 1% in premarket trading.
NortonLifeLock (NLOK) pushed back the expected completion date of its deal to buy rival cybersecurity company Avast to April 4 from Feb. 24, saying it was still waiting for regulatory approvals in the U.K. and Spain. NortonLifeLock fell 1% in the premarket.