Stock futures traded mostly higher on Friday as investors eagerly awaited quarterly earnings reports from some of the biggest banks in the United States. In addition, oil prices surged following a series of strikes on Houthi rebel targets in Yemen.
Bank Stocks Poised for Movement
In the premarket session, JPMorgan Chase saw a slight increase of 0.1%, while Bank of America experienced a slight decline. Citigroup, on the other hand, dropped by 0.7%, all ahead of their respective earnings reports. Other major banks such as Wells Fargo, Bank of New York Mellon, and BlackRock, the largest asset manager in the world, are also expected to share their earnings early on Friday.
Additional Earnings Reports to Watch
Apart from the banking sector, investors will also keep an eye on earnings reports from UnitedHealth and Delta Air Lines as they round out the earnings docket for the day.
Oil Prices Surge on Yemen Strikes
Following the launch of more than a dozen strikes on Houthi rebel targets in Yemen, oil prices experienced a notable increase. Exxon Mobil and Chevron both rose by 0.8%, while U.S.-listed shares of BP saw a 1% gain. West Texas Intermediate crude, the U.S. benchmark, rose by 2.1% to reach $73.53 a barrel, while Brent crude increased by 2% to $78.94 a barrel.
Investors remain attentive as these market developments unfold throughout the day.
Tesla Halts Production in Berlin Factory Due to Supply Chain Disruptions
Tesla, the leading electric-vehicle maker, has announced its decision to temporarily halt production at its Gigafactory in Berlin for a period of two weeks. This move comes as the ongoing conflict in the Red Sea continues to disrupt transportation ships, resulting in considerably longer transportation times and creating a gap in the supply chains.
In a statement, Tesla explained that the lack of components caused by these disruptions has forced them to suspend vehicle production at the Gigafactory Berlin-Brandenburg. As a result of this news, Tesla's shares declined by 2.2% in premarket trading.
Cytokinetics Faces Setback as Novartis Withdraws Acquisition Pursuit
Shares of biopharmaceutical company Cytokinetics plummeted by 16% following reports that Swiss drug giant Novartis was abandoning its pursuit of acquiring the heart-drug developer. Just days ago, there were expectations of an imminent agreement between the two companies. However, according to The Wall Street Journal, Novartis has decided to back away from the deal. This setback led to a further 0.4% drop in Cytokinetics' shares during premarket trading.
DocuSign Receives Attention from Private-Equity Firms
DocuSign, a leading provider of online-signature services, experienced a 9% surge in its stock price following news that private-equity firms Bain Capital and Hellman & Friedman were vying to acquire the company. According to reputable sources, both firms are among the final bidders for DocuSign. This positive development contributed to a 0.2% increase in DocuSign's stock during premarket trading.
Polestar Automotive Celebrates Strong Fourth Quarter Deliveries
Electric vehicle start-up Polestar Automotive saw a 2.2% increase in its stock price after announcing that it delivered approximately 12,800 cars during the fourth quarter. Moreover, the company achieved a notable 6% growth in global deliveries compared to the previous year, with a total of around 54,600 cars delivered.
These recent developments highlight the dynamic nature of the market and the various challenges and opportunities faced by different industries.
Smith Douglas Homes Trading Debut: Stock Soars 14%
Smith Douglas Homes, a prominent home builder, experienced a remarkable surge of 14% during its trading debut. Closing at $24 per share on Thursday, the stock exceeded its initial trade of $23.28 and surpassed its offered price of $21 per share.