Global stock futures experienced a decline on Wednesday as central bank officials around the world attempted to manage expectations about interest-rate cuts in 2024. Here are some notable movements in the market:
Spirit Airlines
Spirit Airlines faced a significant setback on Tuesday, with a 47% decrease in their stock value. In premarket trading, the budget carrier's shares dropped an additional 4.4%. This decline came after a federal judge blocked the airline's acquisition by JetBlue Airways, citing potentially harmful consequences for the cost-conscious fliers. On the other hand, JetBlue experienced a marginal increase of 1%.
Chinese Stocks
Shares of Alibaba, JD.com, and PDD Holdings, all listed in the U.S., witnessed a downturn. Alibaba dropped by 3.2%, JD.com slumped by 5.2%, and PDD Holdings fell by 4.4%. The decline followed China's announcement that its gross domestic product expanded by only 5.2% in the fourth quarter of 2023, marking the slowest annual growth rate since 1990, excluding the years impacted by the Covid-19 pandemic.
Interactive Brokers
Interactive Brokers reported adjusted earnings of $1.52 per share for the fourth quarter, missing analysts' estimates by just one cent. However, the company's revenue rose by a solid 17% to reach $1.14 billion, which aligned with forecasts. Notably, customer accounts at the electronic broker increased by 23% to reach 2.56 million during the period, while customer equity surged by an impressive 39% to hit $426 billion. Despite these positive figures, the stock experienced a decline of 3.6%.
Progress Software
In contrast to Interactive Brokers, Progress Software posted fourth-quarter adjusted earnings that were lower than the previous year. However, these earnings still exceeded Wall Street expectations. The company's revenue reached $177 million, surpassing estimates as well. Additionally, Progress Software's outlook for fiscal 2024 closely matched analysts' forecasts. Consequently, the company's shares saw a modest increase of 2.9%.
These recent developments in various sectors highlight the ongoing volatility and uncertainty in the stock market. Investors are advised to closely monitor these trends and make informed decisions.
Impinj Expects Strong Fourth-Quarter Results
Impinj, the leading internet-of-things company, has announced that it expects its fourth-quarter revenue to surpass $70 million. This is above its previous guidance range of $65.5 million to $68.5 million. Additionally, the company anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to exceed $2.5 million, surpassing the prior guidance of negative $900,000 to positive $700,000. As a result of this positive news, Impinj's stock saw a rise of 5.9%.
Plexus Adapts Guidance for Fiscal First Quarter
In contrast, Plexus, the electronic manufacturing services company, has lowered its guidance for fiscal first-quarter revenue. The company now expects revenue in the range of $980 million to $985 million, below its previous outlook of $990 million to $1.03 billion. Plexus also warned that it would miss its previous guidance for operating margins and earnings. They attributed this to "continued market-driven inventory corrections and incrementally weaker demand" from the healthcare and industrial market sectors.
Charles Schwab to Announce Fourth-Quarter Earnings
Financial analysts are eagerly awaiting Charles Schwab's fourth-quarter earnings report, scheduled for Wednesday. It is anticipated that the company will report earnings of 64 cents per share on revenue of $4.5 billion. This is a decline from the previous year's earnings of $1.07 per share and revenue of $5.5 billion. The stock slightly decreased ahead of the report.
More Earnings Reports Expected
Apart from Charles Schwab, a number of other companies are also set to release their earnings reports on Wednesday. Prologis, U.S. Bancorp, Discover Financial Services, and Alcoa are among the companies that will be sharing their financial results.
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