Stocks, Kohls, Peloton Earnings, and Bitcoin—Five Things to Know

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Here are five things you need to know for Monday, January 24:

1. — Stock futures slide amid Russian tensions, rate concerns

U.S. stock futures fell on Monday following a sell-off in major markets around the world as investors priced in a crucial week of global risk, including a key Fed meeting, dozens of profits of the first order and an acceleration of geopolitical tensions between Washington and Moscow. .

European and Asian equities suffered heavy losses on Monday as traders were reluctant to snap up downed tech stocks ahead of Wednesday’s Fed meeting – where should it be the first of at least three rate hikes ahead of the end of the year – and the busy market list of corporate earnings starting after the bell today with an update from IBM’s December quarter.

Simmering tensions between Russia and Ukraine, where troops are believed to have amassed on the border of the former Soviet satellite, are also having an effect on sentiment, particularly now that President Joe Biden is considering intervention options amid that he is ordering family members of diplomats in Kyiv to leave “due to the continuing threat of Russian military action” in the region.

US stocks, which were looking to recoup a small portion of last week’s losses – the worst since the 2020 pandemic – at the start of pre-market trading, are now falling as market volatility gauges remain high and yields Bonds dictate trading as the opening bell approaches.

Futures linked to the Dow Jones indicate an opening bell drop of 140 points while those linked to the S&P 500 are priced for a rise of 25 points to the downside.

Nasdaq Composite futures point to a lower opening bell of 120 points even as yields on benchmark 10-year Treasury bills fall to 1.721% in overnight trading.

2. — Focus on earnings ahead of key week for Big Tech reports

With few major economic data releases for this week, earnings will take center stage on Wall Street with more than a quarter of the S&P 500 set to deliver updates over the next five days.

Collective S&P 500 earnings for the three months ending December are expected to rise 23.7% from a year ago to $436.4 billion, according to data from Refinitiv, the energy sector and materials leading the gains.

Apple (AAPL) – Get the Apple Inc. report, Microsoft (MSFT) – Get the Microsoft Corporation report, Tesla, IBM (IBM) – Get the International Business Machines Corporation report, General Electric (GE) – Get the General Electric Company report , Boeing (BA) – Get the Boeing Company Report, AT&T (T) – Get the AT&T Inc. Report, Exxon (XOM) – Get the Exxon Mobil Corporation Report, Chevron (CVX) – Get the Chevron Corporation and Caterpillar Report (CAT) – Get the Caterpillar Inc. report but some of the 104 companies expected to report this week, with investors looking for near-term projections on demand, supply chains and input costs as they assess the potential to generate above-target earnings for the current quarter – when earnings growth is expected to slow to around 7%.

That said, Bank of America’s weekly “Flow Show” report suggests that the world’s top fund managers remain optimistic: more than $52 billion has been invested in equity funds so far this year – a figure that matches the tally at the start of January last year – and equities still account for more than 65% of private client holdings.

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3. — Kohl shares soar as private equity contenders eye retailers

Kohl’s (KSS) – Shares of Get Kohl’s Corporation Report soared in premarket trading as private investors and activists lined up competing takeover bids for the struggling department store retailer.

Sycamore Partners, a New York-based private equity group, would offer $65 a share for Kohl’s, a price that would value the Menomonee Falls, Wis.-based retailer at around $9 billion.

The reported interest comes just days after multiple outlets said investor-backed activists Acacia Research had offered Kohl’s $64 a share following public criticism of the group’s leadership from activist Macellum investors. Advisors, which owns 5% of the retailer, and at the insistence of a set-sell business after what it called a “lost year” for the department store icon.

Kohl’s shares rose 828.7% in premarket trading to show an opening price of $60.27 each.

4. — Peloton shares gain as activists seek CEO changes, possible sale

Peloton Interactive (PTON) – Get Peloton Interactive, Inc. Class A Report shares extended gains in premarket trading after activist investors at Blackwells Capital LLC reportedly called for the firing of CEO John Foley and the potential sale of the device maker fitness equipment, after selling billions last week.

Blackwells Capital, which is managed by star investor Jason Aintabi, reportedly pushed for immediate changes at Peloton and blamed Foley for a series of missteps that culminated with a CNBC report on Thursday suggesting he was preparing to halt the production of bicycles and treadmills amid a “significant” decline in customer demand.

Foley called the report ‘false’ but admitted the cost cuts and production changes were necessary ‘corrective actions’ for the connected fitness group as it pre-announced its revenue projections ahead of publication fourth quarter results next month.

Shares of Peloton rose 1.15% in premarket trading on Monday to point to an opening price of $27.21 each.

5. — Bitcoin Prolongs Crash Amid Network Instability and Price Volatility

Bitcoin prices extended lower after another wild weekend for cryptocurrency traders that included reliability issues on a key blockchain network and an additional sell-off for the world’s largest digital coin.

Bitcoin prices hit a six-month low of $33,000 each on Saturday, marking a more than 50% retracement from the all-time highs it hit in mid-November, as holders continue to dump crypto amid heightened market volatility, rising interest rates and pressure. on leveraged accounts that triggered hard sells.

The crypto world has also been hit by the “instability” of Solana, a blockchain network that verifies transactions, amid what he called “high levels of network congestion.”

Bitcoin prices were last seen down 4.8% in Monday’s session at $33,520.53 each on the CoinDesk exchange.

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