U.S stock futures were mixed on Friday as investors continued to digest the hawkish stance by the Federal Reserve that hinted at aggressive monetary policy tightening and interest rate hikes.
The biggest worry for investors is how much of an interest rate hike the FED is likely to carry out in March. Any increase is expected to have an impact on borrowing costs. Heading into the weekend, investors will turn their attention to key inflation and consumer spending data that could paint a picture of the health of the U.S. economy.
Growing tensions between Russia and Ukraine also continue to weigh on risk sentiment in the market despite strong corporate quarterly results.
Dow futures (DJIA) were down 0.19%, S&P futures (SPX) were down 0.07%, and Nasdaq futures (NDX) were up 0.39% at the time of writing.
Upcoming Earnings
Capitol Federal Financial (CFFN), Colgate-Palmolive (CL), Phillips 66 Common Stock (PSX), Southside Bancshares (SBSI), VF (VFC), and WisdomTree Investments (WETF) are scheduled to report their quarterly results before the opening bell.
Market News
Meta Platforms’ (FB) Facebook can breathe a sigh of relief after securing conditional European antitrust approval for the acquisition of customer service startup Kustomer. The company secured the approval after agreeing to let rivals access messaging channels for free over the next ten years.
Apple Inc. (AAPL) delivered solid Fiscal first-quarter results driven by a strong customer response to innovative products and services. The company posted record revenues of $123.9 billion, above the $118.28 billion that analysts expected. Earnings landed at $2.10 a share, surpassing consensus estimates of $1.89 a share.
Southwest Airlines Co. (LUV) delivered better-than-expected fourth-quarter results characterized by its first quarterly profit since the fourth quarter of 2019. Earnings and revenues topped estimates, benefiting from strong leisure travel demand. Adjusted earnings popped into a profit of $0.14 a share from a loss of $1.29 a share in the same quarter last year and above consensus estimates of $0.07 a share. Revenue was up 150.9% year-over-year to $5.1 billion, above consensus estimates of $5.01 billion.
Blackstone (BX) shares popped 6.8% after the asset manager delivered record fourth-quarter results above consensus estimates. Distributable earnings were up 51% year-over-year to $1.71 a share, easily beating consensus estimates of $1.36 a share. Net income nearly doubled to $1.4 billion from $748.9 million as total revenue increased 58.7% year-over-year to $5.76 billion.
McDonald’s Corporation (MCD) delivered disappointing fourth-quarter results with earnings and revenues missing estimates. The miss comes on the back of the company feeling the impact of higher costs. Adjusted earnings grew 33% year-over-year to $2.23 a share, but lagged analysts’ estimates of $2.34. Revenue jumped 13% year-over-year to $6.01 billion but missed consensus estimates of $6.03 billion.
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