Wall Street’s main stock indexes plunged after Federal Reserve Chairman Jerome Powell comments failed to calm investor concern about the recent spike in longer-term US bond yields and inflation.
The tech-heavy Nasdaq Composite Index declined 2.4% and the S&P 500 Index was down 1.7%. The Dow Jones Industrial Average depreciated 1.5%.
The UK’s antitrust regulator has launched an investigation into Apple following complaints that the iPhone maker’s terms and conditions for software app developers are unfair and anti-competitive. The UK’s Competition and Markets Authority (CMA) will probe whether Apple plays a dominant role in the distribution of apps on the iPhone maker’s devices in the UK. Additionally, the investigation will center around whether Apple imposes unfair or anti-competitive terms on developers using the App Store, which result in users having limited choice or paying higher prices for apps and add-ons. Shares slipped 1.7%
Bally’s Corp. swung to a surprise profit in the fourth quarter topping analysts’ expectations. However, shares of the gaming and racing facilities owner sank almost 11% as quarterly revenue of $118.1 million missed the Street’s estimates of $123.43 million and decreased 9.4% from the year-ago period. Various state restrictions due to the coronavirus pandemic negatively impacted quarterly revenues. Meanwhile, the company reported 4Q adjusted earnings of $0.39 per share, down 7.1% year-over-year. Analysts had expected a loss of $0.08 per share.
In other gaming news, Zynga announced the acquisision of Echtra Games for an undisclosed sum. Echtra Games is a game studio developing games that can be played across various platforms and whose core team members have worked on developing gaming franchises like Diablo, Diablo II, and the Torchlight. Zynga’s CEO Frank Gibeau said, “This acquisition will be instrumental in growing our iconic licenses and brands from mobile to PCs and consoles, while helping to further expand Zynga’s total addressable market.” Shares dropped 6%.
Fast-food chain Wendy’s posted lower-than-expected fiscal 4Q results, pushing the stock down almost 3%. The company’s 4Q adjusted earnings of $0.17 per share missed Street estimates by $0.01. Adjusted revenues of $382.1 million came in lower than the consensus estimate of $476.39 million. Nonetheless, the company’s top and bottom lines marked year-over-year improvements of 11.8% and 112.5%, respectively. Following the 4Q results, Oppenheimer’s Brian Bittner reiterated a Hold rating on the stock as the analyst is looking “for an opportunity to get bullish again.”
Shares of BlueLinx Holdings tanked more than 10% even as the wholesale distributor of building and industrial products delivered fourth-quarter results that not only topped the Street’s estimates, but also exceeded the year-ago period’s results. BlueLinx reported 4Q earnings of $2.04 per share, which outshined analysts’ expectations of $0.66 per share. It also compared favorably with the year-ago period’s loss of $1.09 per share. Bottom-line growth was driven by higher revenues, improved gross margins, and growth in adjusted EBITDA. Revenues rose 41% year-over-year to $865 million, beating the Street’s estimates of $788.6 million.
American Eagle Outfitters climbed more than 4% after the lifestyle, clothing, and accessories retailer reported 4Q results that topped Street estimates. American Eagle posted 4Q earnings of $0.39 per share, which rose 5.4% year-over-year and beat consensus estimates of $0.36 per share. Revenues of $1.29 billion beat analysts’ expectations of $1.28 billion, but fell 2% year-over-year due to a 1% decline in comparable-store sales. The company’s digital revenues increased 35%. However, store revenues dropped 20% due to lower mall traffic and store closures related to the COVID-19 pandemic.
Splunk reported Q4 results that topped analysts’ estimates. Revenues of $745 million fell 6% year-on-year but came in ahead of consensus estimates of $682.2 million. Non-GAAP net income per share of $0.38 beat analysts’ expectations of $0.04. Total annualized recurring revenue (ARR) spiked 41% year-on-year to $2.36 billion while cloud business revenues ballooned 72% year-on-year to $171 million. Shares declined 3.2%.
