U.S. stock futures are mixed after indexes pushed higher yesterday on tech optimism; Netflix (NFLX) shares are in focus after leading S&P 500 risers yesterday; the U.K. opens an antitrust investigation into the mobile ecosystems of Apple (AAPL) and Alphabet’s (GOOGL) Google; GE Aerospace (GE) stock is jumping in premarket trading after it reported fourth-quarter results well above expectations; and Electronic Arts (EA) stock is plunging after the video game maker reported sinking demand for its soccer franchise. Here’s what investors need to know today.
1. US Stock Futures Mixed After Markets Near Record Highs
U.S. stock futures are mixed after artificial intelligence (AI) optimism helped push tech stocks higher in the prior session. S&P 500 futures are edging lower after the index nearly hit a record high, while Nasdaq futures are down by 0.5% after that index rose 1.3% to also come near record levels. Dow Jones Industrial Average futures are ticking higher. Bitcoin (BTCUSD) is down 2% to trade at just under $102,000, while yields on the 10-year Treasury note climbed to 4.65%. Oil futures are rising and gold futures are falling.
2. Netflix Stock Remains in Focus After Blowout Earnings Report
Netflix (NFLX) shares remain in focus as the streaming giant continues to build momentum from its better-than-expected earnings report. Netflix gained nearly 10% to lead S&P 500 risers yesterday following the blowout report, which showed the company grew revenue and profits faster than analysts anticipated. Shares of Netflix, which also announced it would raise its prices, hit an all-time high Wednesday and are ticking higher in premarket trading.
3. UK Opens Antitrust Investigation into Apple, Google Mobile Ecosystem
Antitrust regulators in the United Kingdom have opened an investigation into the mobile ecosystems of both Apple (AAPL) and Alphabet’s (GOOGL) Google to determine whether the companies hold “strategic market status.” The country’s Competition and Markets Authority (CMA) said it would look at the companies’ operating systems, app stores, and mobile browsers to ensure there is effective competition in the market. The CMA also has an investigation open into Google’s search and advertising businesses.
4. GE Aerospace Stock Jumps as Results Blow Past Expectations
GE Aerospace (GE) stock is surging 7% in premarket trading after the company’s quarterly results easily surpassed analysts’ estimates. The airplane engine manufacturer reported net income of $1.9 billion, or $1.75 per share, on $10.81 billion in revenue. Analysts had expected profit of $1.2 billion, or $1.10 per share, on $10.01 billion in revenue, according to estimates compiled by Visible Alpha.
5. EA Stock Plunges as Demand Declines for Popular Games
Electronic Arts (EA) shares are plunging 16% in premarket trading after the video game maker pointed to weak demand for popular games in cutting its outlook. In preliminary results announced late Wednesday, the company projected fiscal third-quarter net bookings to be $2.22 billion, down from $2.4 billion to $2.55 billion. The company said its Global Football segment, which features the EA SPORTS FC franchise, “experienced a slowdown as early momentum in the fiscal third quarter did not sustain through to the end.” Separately, engagement with its Dragon Age franchise was down nearly 50% from the EA’s expectations.
