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Business

5 things to know before the stock market opens Wednesday, March 9

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Dow futures rise 500 points, a day after more wild swings

Traders at the NYSE, March 8, 2022.

Source: NYSE

Dow futures rose 500 points, or roughly 1.7%, on Wednesday. Gains in S&P and Nasdaq futures were even stronger as U.S. oil prices in early trading were breaking a 15%, three-session run to the upside. West Texas Intermediate crude fell roughly 4.5% on Wednesday, one day after gaining 3% on the U.S. banning Russian oil imports. The 10-year Treasury yield on Wednesday rose to over 1.9%.

On Tuesday, Wall Street saw wild swings, with the Dow Jones Industrial Average going from an early session decline to a 585-point gain before closing 184 points lower. The S&P 500 followed a similar path, as both benchmarks slid further into corrections. The Nasdaq, which dropped, rose and closed lower Tuesday, fell further into a bear market.

2. Evacuations continue in Ukraine as Russia’s march on Kyiv slows

A member of the Ukrainian military gives instructions to women and children that fled fighting in Bucha and Irpin before boarding an evacuation train from Irpin City to Kyiv that was scheduled after heavy fighting overnight forced many to leave their homes on March 04, 2022 in Irpin, Ukraine.

Chris Mcgrath | Getty Images

Mass evacuations from war-torn Ukrainian cities continued Wednesday. Days of Russian shelling have largely cut residents of the southern city of Mariupol off from the outside world and forced them to scavenge for food and water. U.S. Vice President Kamala Harris will visit Poland on Wednesday to thank Warsaw for taking in hundreds of thousands of Ukrainian refugees.

Two weeks into its offensive, Russia has achieved less and struggled more than anticipated. In a U.K. intelligence update Wednesday, British officials said fighting was ongoing northwest of the Ukrainian capital of Kyiv, but Russian troops were not making any major progress in reaching the city.

3. Four big U.S. brands, including McDonald’s, halt operations in Russia

PepsiCo, Coca-Cola, McDonald’s and Starbucks each said Tuesday they are suspending business in Russia after that country’s invasion of Ukraine, a symbolic move by four iconic U.S. brands.

  • PepsiCo has sold it products in Russia for more than six decades.
  • Coca-Cola came to Russia in 1992.
  • McDonald’s opened its first location in Moscow in 1990, just months before the fall of the Soviet Union.
  • Starbucks entered the Russian market in 2007.

In recent days, before their announcements, all four had faced heavy criticism for continuing to operate in Russia, while other U.S. companies announced suspensions and paused sales.

4. Congress reaches a deal on $13.6 billion in aid to Ukraine, Europe

A man walks past the U.S. Capitol building as a government shutdown looms in Washington, September 30, 2021.

Leah Millis | Reuters

Congressional leaders reached a bipartisan deal early Wednesday on providing $13.6 billion to help Ukraine and European allies, in addition to billions more to battle the Covid pandemic as part of an overdue $1.5 trillion measure financing federal agencies for the rest of this year. President Joe Biden requested $10 billion for military, humanitarian and economic aid to Ukraine last week. Democratic and Republican support was so strong that the figure grew. Lawmakers face a Friday deadline to approve the governmentwide spending measure or face a federal agency shutdown.

5. Bitcoin jumps as Biden announces executive order on cryptocurrencies

Bitcoin and other cryptocurrencies were higher Wednesday after Biden announced his highly anticipated executive order on digital assets. The order attempts to address the lack of a framework for the development of cryptocurrencies in the U.S., which critics believe could leave the country’s industry behind the rest of the world. Treasury Secretary Janet Yellen said in a statement Wednesday that the executive order “calls for a coordinated and comprehensive approach to digital asset policy.” It appears to be broadly welcomed by the cryptocurrency industry and investors.

— The Associated Press contributed to this report. Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.

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Business

Coca-Cola (KO) Q4 2021 earnings

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A woman is drinking Coca-Cola near Playacar Beach in Playa del Carmen.

Artur Widak | NurPhoto | Getty Images

Coca-Cola on Thursday reported quarterly earnings and revenue that topped analysts’ expectations.

But the company issued a weaker-than-expected outlook, predicting that higher inflation would continue to weigh on its earnings throughout 2022. Rival PepsiCo similarly warned investors about rising costs for packaging and transportation.

Shares of Coke rose more than 1% in premarket trading.

Here’s what the company reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 45 cents adjusted vs. 41 cents expected
  • Revenue: $9.46 billion vs. $8.96 billion expected

The beverage giant reported fourth-quarter net income of $2.41 billion, or 56 cents per share, up from $1.46 billion, or 34 cents per share, a year earlier.

Excluding items, Coke earned 45 cents per share, beating the 41 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 10% to $9.46 billion, topping expectations of $8.96 billion. Organic revenue, which strips out the impact of acquisitions and divestitures, jumped 9% in the quarter.

For 2022, Coke is expecting comparable earnings per share growth of 5% to 6%, while Wall Street analysts were forecasting 6.1% growth. It expects higher commodity costs to hit earnings by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the full year.

Read the full earnings report here.

This is a breaking news story. Please check back for updates.

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Business

This is a treacherous market filled with extreme stock moves

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CNBC’s Jim Cramer on Friday offered viewers his game plan for the next five trading days on Wall Street.

The “Mad Money” host’s lookahead came after the S&P 500 and Nasdaq Composite posted their best weeks so far in 2022, finishing 1.5% and 2.4% higher, respectively.

“This week we saw the true colors of what is a treacherous market,” the “Mad Money” host said. If investors love a stock, there’s “no level it won’t be taken up to,” he said. “But if it’s hated? There are no depths it won’t sink to. Either way … it’s likely to be an extreme.”

All revenue and earnings per share estimates are from FactSet.

Monday: Tyson Foods, Two-Take Interactive and Simon Property Group

Tyson Foods

  • Q1 earnings release before the bell; conference call at 9 a.m. ET
  • Projected EPS: $1.93
  • Projected revenue: $12.17 billion

Cramer said the company’s quarter should provide insights into the country’s meat supply chain, which has experienced a host of challenges during the Covid pandemic.

Take-Two Interactive

  • Q3 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: $1.12
  • Projected sales: $868 million

Take-Two’s quarter will provide a glimpse into how much of the pandemic-related surge in gaming has stuck around, Cramer said. “[CEO] Strauss Zelnick is the straightest of straight shooters. If demand is waning, he’s just going to say it.”

Simon Property Group

  • Q4 earnings release after the bell; conference call at 5 p.m.
  • Projected EPS: $2.89
  • Projected revenue: $1.25 billion

Tuesday: Centene, Pfizer, Chipotle, DuPont and Peloton

Centene

  • Q4 earnings before the open; conference call at 8:30 a.m. ET
  • Projected EPS: 98 cents
  • Projected revenue: $32.5 billion

“I think it’s a takeover target and I bet we’ll get a very good quarter,” Cramer said of the health insurer.

Pfizer

  • Q4 earnings before the bell; conference call at 10 a.m. ET
  • Projected EPS: 87 cents
  • Projected sales: $24.16 billion

Cramer also said he expects very good numbers from Pfizer.

DuPont

  • Q4 earnings before the open; conference call at 8 a.m. ET
  • Projected EPS: 99 cents
  • Projected revenue: $4.02 billion

“The great industrials have had a real up and down time in this market and I fear this could be DuPont’s down time, which is why we finally decided to ring the register for a terrific profit for the charitable trust,” Cramer said.

Chipotle

  • Q4 earnings after the close; conference call at 4:30 p.m. ET
  • Projected EPS: $5.25
  • Projected sales: $1.96 billion

Cramer said Chipotle’s quarter is the one he’s most interested in Tuesday. “I think it could do low double-digit same-store sales versus last year’s already excellent numbers and that should cause the stock to ignite,” he said. “Raw costs are always a problem in the business, though.”

Peloton

  • Q2 earnings after the close; conference call at 5 p.m. ET
  • Projected EPS: Loss of $1.22
  • Projected revenue: $1.14 billion

Cramer said he’s looking for a host of updates from Peloton’s management after the exercise equipment maker’s stock has been pummeled in recent months. One topic that is likely to come up is The Wall Street Journal’s report Friday that Amazon has approached Peloton about a potential deal, Cramer said.

Wednesday: CVS Health, PepsiCo, Disney and Mattel

CVS Health

  • Q4 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $1.83
  • Projected sales: $75.66 billion

“I expect a very good quarter from CVS [because of] Covid testing, but what happens next?” Cramer said. “Have they monetized the vaccination seekers? That would take it to the next level.”

PepsiCo

  • Q4 earnings release before the open; conference call at 8:15 a.m. ET
  • Projected EPS: $1.52
  • Projected revenue: $24.24 billion

Cramer said he was surprised the beverage giant’s stock fell 1.6% Friday, suggesting he’d pick up some shares ahead of the quarterly print.

Disney

  • Q1 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: 73 cents
  • Projected revenue: $20.27 billion

Cramer said he thinks the media and entertainment giant does not get enough credit for the value of its intellectual property. “This isn’t Netflix. It isn’t Facebook. It’s a one-of-a-kind growth vehicle. It is not stagnant. It is not dead, and that’s why I’d like to build a bigger position ahead of the quarter for my trust,” he said.

Mattel

  • Q4 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: 33 cents
  • Projected revenue: $1.66 billion

“I think there could be a whole new slate of toys and entertainment from CEO Ynon Kreiz, who’s been a turnaround whizz,” Cramer said.

Thursday: Coca-Cola, Twitter, Cloudflare and Zendesk

Coca-Cola

  • Q4 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 41 cents
  • Projected revenue: $8.98 billion

While Cramer said he expects a good quarter from Coca-Cola, he specifically mentioned looking for updates on the beverage maker’s partnership with Molson Coors on a Topo Chico hard seltzer. “I think this is the next big spiked [beverage],” Cramer said.

Twitter

  • Q4 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: 33 cents
  • Projected revenue: $1.58 billion

It’s unclear whether Twitter’s digital ad business faces challenges like Facebook parent Meta or is growing just fine like Amazon or Alphabet, Cramer said. “I think we’ll find out that it remains the same old plodding Twitter when it reports—a company that has nothing we truly want to pay up for,” Cramer said.

Cloudflare

  • Q4 earnings after the close; conference call at 5 p.m. ET
  • Projected EPS: 0 cents
  • Projected revenue: $185 million

Cramer said he’s anticipating “great numbers” from the cybersecurity firm, but “I don’t expect anyone to care” because the stock is out of favor on Wall Street.

Zendesk

  • Q4 earnings after the bell; conference call at 5 p.m. ET
  • Projected EPS: 18 cents
  • Projected sales: $371 million

Cramer said he’s keeping an eye out for an update on Zendesk’s pursuit of Momentive Global, a deal which activist investor Jana Partners has urged Zendesk to drop.

Friday: Under Armour, Cleveland-Cliffs and Goodyear Tire & Rubber

Under Armour

  • Q4 earnings release before the open; conference call at 8:30 a.m. ET
  • Projected EPS: 6 cents
  • Projected sales: $1.47 billion

“There’s lots of good buzz about this one, so much that I think it’s actually a terrific speculation going into the quarter. We keep hearing about a potential turnaround, maybe this time it’s going to happen,” Cramer said.

Cleveland-Cliffs

  • Q4 earnings before the bell; conference call at 10 a.m. ET
  • Projected EPS: $2.15
  • Projected revenue: $5.73 billion

“I’m betting actually that Cleveland-Cliffs will do a decent number,” Cramer said, complimenting the company’s management and improved balance sheet.

Goodyear Tire & Rubber

  • Q4 earnings before the open; conference call at 9 a.m. ET
  • Projected EPS: 32 cents
  • Projected sales: $5.01 billion

“I think that Goodyear will positively dazzle,” Cramer said.

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Business

Coca-Cola CEO expects to see sporadic product shortages through 2022

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James Quincey, the CEO of The Coca-Cola Company, speaks during an interview with CNBC on the floor at the New York Stock Exchange, December 9, 2019.

Brendan McDermid | Reuters

Coca-Cola CEO James Quincey said Wednesday he expects to see sporadic shortages on grocery shelves through 2022.

Like other food and beverage companies, Coke is dealing with snarls in the supply chain and higher commodity costs, which have resulted in some shortages.

“My analogy would be it’s a bit like an earthquake,” Quincey said on CNBC’s “Squawk on the Street.” “You get further shock waves coming through, but they tend to be of diminishing magnitude.”

He added that while shortages may persist through next year, they will likely decrease in significance over time as the situation improves.

Quincey said the company uses its global scale and long-term partnerships to navigate issues within its supply chain. However, it’s not possible to mitigate all challenges. He presented a second analogy, comparing the supply chain headaches to a game of Whac-a-Mole.

“Some issues are ongoing and structural, and some issues appear for a quarter and disappear again,” he told CNBC’s Sara Eisen.

On a call with analysts, he listed issues like labor shortages, spiking gas costs in Europe and a plastic plant in Brazil that burst into flames.

Shares of Coke were up 2% in morning trading after the company’s earnings and revenue topped Wall Street’s estimates and it raised its forecast for fiscal 2021.

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Business

Robinhood, McDonald’s, Microsoft & more

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Check out the companies making headlines Wednesday before the bell:

Coca-Cola (KO) — Coca-Cola jumped 2.9% in the premarket following a profit and revenue beat for the beverage giant, which also raised its full-year forecast. Coca-Cola reported adjusted quarterly earnings of 65 cents per share, 7 cents above a Refinitiv estimate. Results were helped by reopening of theaters and restaurants.

McDonald’s (MCD) — McDonald’s climbed 3.1% after reporting adjusted quarterly earnings of $2.76 per share, 30 cents above estimates. Revenue and comparable restaurant sales exceeded analyst forecasts as well, helped by higher prices and new menu items.

Boeing (BA) — Boeing reported an adjusted quarterly loss of 60 cents per share, compared with an expected loss of 20 cents per share, while revenue fell short of forecasts as well. Boeing did report better than expected free cash flow, and the stock rose about 1% in premarket action.

General Motors (GM) — GM fell 1.2% in the premarket even after exceeding Wall Street forecasts on both the top and bottom lines. The automaker earned an adjusted $1.52 per share in the third quarter, well above the 96 cent consensus estimate. It also issued a strong full-year outlook.

Harley-Davidson (HOG) — The motorcycle maker reported quarterly earnings of $1.05 per share, beating the 70 cent consensus estimate, with revenue topping forecasts as well. Harley said it is working to mitigate the impact of supply chain challenges, and its stock gained 2.5%.

Spotify (SPOT) — The music streaming service reported a larger-than-expected quarterly loss, but revenue beat analyst estimates as did user growth. The stock gained 2.5% in the premarket. 

Microsoft (MSFT) — Microsoft beat estimates by 20 cents with adjusted quarterly earnings of $2.27 per share, with revenue above estimates as well. Microsoft benefitted from significant growth in its cloud computing business. The stock gained 1.5% in premarket action.

Alphabet (GOOGL) — Alphabet earned $27.99 per share for the third quarter, beating the Refinitiv estimate of $23.48 per share, with the Google parent’s revenue topping Wall Street forecasts as well. The quarter saw the biggest growth for Google ad sales in 14 years, but the stock slid 0.5%.

Twitter (TWTR) — Twitter reported an adjusted quarterly profit of 18 cents per share, topping a Refinitiv forecast by 3 cents per share. Revenue came in line with estimates. User growth was just below consensus. However, Twitter did not see a significant impact from the change in Apple’s privacy policies, in contrast to social media rivals Facebook (FB) and Snap (SNAP).  Twitter shares added 1.7% in premarket action.

Robinhood (HOOD) — Robinhood tumbled 8.5% in premarket trading, after the trading platform operator posted a larger-than-expected loss and quarterly revenue that missed estimates. Robinhood’s quarter was hurt by declining trading levels for cryptocurrencies, among other factors.

Visa (V) — Visa reported adjusted quarterly earnings of $1.62 per share, 8 cents above expectations, with revenue also beating forecasts on increased online and travel spending. However, Visa fell 2.5% in the premarket after issuing a revenue outlook that some analysts considered conservative.

Enphase Energy (ENPH) — Enphase surged 15.5% in premarket trading, after the solar company beat top and bottom line estimates in its latest quarter with revenue rising to record levels. 

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Business

Dow futures fall slightly after the blue-chip average notches third winning week in a row

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Traders work on the floor of the New York Stock Exchange (NYSE) on October 15, 2021 in New York City.

Spencer Platt | Getty Images

Stock futures edged lower in overnight trading Sunday after the Dow Jones Industrial Average notched its third positive week in a row at a record high.

Dow futures dipped 50 points. S&P 500 futures and Nasdaq 100 futures both fell about 0.1%.

Wall Street is coming off a winning week on the back of strong corporate earnings. The blue-chip Dow gained more than 1% last week and closed Friday at a record. The S&P 500 rallied 1.7% last week, also posting its third straight positive week and hitting an all-time high Friday.

Of the 117 companies in the S&P 500 that have reported earnings to date, 84% posted numbers that beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.

“Rising tide of earnings is lifting all the boats and adding fuel to the bull market fire,” said Anu Gaggar, global investment strategist at Commonwealth Financial Network. “The 3Q earnings season is off to a strong start despite concerns about supply bottlenecks and labor shortages.”

Some of the biggest technology companies are slated to report earnings this week, including Facebook, Alphabet, Microsoft, Amazon and Apple. A third of the Dow companies also is set to release quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.

Major averages have all registered solid gains for October. The Dow and the S&P 500 are both up more than 5%, while the Nasdaq Composite has climbed 4.4% month to date.

Leading the October rally in the broader market has been the energy sector, which is up 11% this month. Industrials, real estate, materials and financials have all popped at least 7% over the same period.

“Transports, consumer discretionary, and large-cap tech have led the market higher these past two weeks, signaling that growth worries around supply chain constraints are beginning to fade,” said Lindsey Bell, chief investment strategist at Ally Invest.

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Business

These companies are sucking carbon from the atmosphere

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The race to reduce carbon emissions is heating up, much like the planet itself is. But reducing emissions alone will not be enough to stop what’s happening.

It is not even enough to reach the goal of the Paris climate agreement, which is to limit global in this century to 1.5 degrees Celsius above preindustrial levels.

There is, however, a technology that’s being touted as a way to get us there faster — vacuuming carbon from the atmosphere — and major investors are now piling in.

Just outside Zurich, more than a dozen massive fans are fast at work, cleaning the air of carbon dioxide. So-called direct air capture is the leading edge of what could become the largest environmental industry aimed at saving the planet.

The company behind it, Climeworks, is one of the few offering the technology to basically vacuum the atmosphere of carbon. The plant in Switzerland removes about 900 tons of carbon dioxide per year, according to Climeworks policy chief Chris Beuttler. To put it in perspective, globally we are emitting 40 billion tons.

Beuttler calls the plant a “drop in the bucket,” but the bucket is getting bigger fast, as new companies like Climeworks, as well as governments, seek to monumentally expand what is called direct carbon capture.

“This has to reach several gigatons in terms of scale and not just technologies like direct air capture, but all carbon removal solutions combined. We need everything,” said Beuttler.

Canada-based Carbon Engineering has been working on direct air capture since 2015. Arizona State University and Silicon Kingdom Holdings are deploying proprietary carbon-capture technology that acts like a tree. “[It’s] thousands of times more efficient at removing CO2 from the air,” ASU’s website says. “The ‘mechanical trees’ allow the captured gas to be sequestered or sold for re-use.”

Climeworks’ system is a box with a huge fan on one end and a filter inside that attracts only carbon dioxide. The fan pulls the air through the filter, and once the filter is saturated, the box is closed. It is then heated to 100 degrees Celsius, and the pure carbon dioxide is released and collected. The captured carbon can either be buried deep underground or sold for other uses.

Climeworks installed the Zurich system in 2017, and by 2020 had raised $100 million from the likes of Microsoft, Audi, Shopify and Stripe. It is now building a much larger plant in Iceland.

“It has to become a trillion-dollar market. And I think those are the kinds of investors that see that there’s a long-term return on this,” said Beuttler.

He likens it to the fast rise of electric vehicles, solar panels and wind farms. Now the state of California is working on plans to use carbon capture to reach its aggressive goal of carbon neutrality.

“We have to try to proceed. There’s no choice. We have to sequester carbon at a high rate,” said Ken Alex, director of Project Climate at the Center for Law, Energy and Environment at the University of California, Berkeley.

Carbon-capture technology has been around for a while, he noted, but was considered too expensive.

“The price has already come down dramatically, and as it scales up, I think it’s not unrealistic to think that this is a viable opportunity,” he said.

Alex estimates that the world needs about 50,000 carbon-capture plants by 2050, which would cost about $10 trillion. It is unquestionably a colossal investment, but with ample potential returns — beyond of course saving the planet.

The captured carbon dioxide can be used to make fuel, plastics, even bubbles. Climeworks sells some of its captured carbon to Coca-Cola. Ironically, oil producers like Exxon and Chevron are investing heavily in carbon capture because the carbon can be used to release trapped oil underground.

“Those opportunities are part of the investment dynamic,” said Alex. “It’s a new industry and it’s just getting its feet wet, but I think the possibilities are quite substantial.”

Carbon removal also offers a new opportunity for the carbon credit market. Right now, companies can get credits for avoided emissions, or lower emissions, but in a net-zero world, they have to not just lower but remove carbon.

Now, they can buy those credits from removal companies like Climeworks. That’s why big names like Microsoft, which has said it wants to remove its emissions by 2030, are buying into this.

“In order to stick within the safe levels of global warming, we have to expand this,” Beuttler said. “This is not a question of can we? It’s a question of we have to.”

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Business

5 things to know before the stock market opens Wednesday, July 21

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street tries to keep its rebound rally going

People walk along Wall Street in the rain on July 08, 2021 in New York City.

Spencer Platt | Getty Images

2. J&J, Coca-Cola, Verizon beat on earnings, revenue

A healthcare clinician prepares a dose of the Johnson & Johnson vaccine for the coronavirus disease (COVID-19) for a commuter during the opening of MTA’s public vaccination program at the 179th Street subway station in the Queens borough of New York City, New York, U.S., May 12, 2021.

Shannon Stapleton | Reuters

Dow stock Johnson & Johnson rose about 1% in premarket trading after the U.S. drugmaker Wednesday delivered better-than-expected earnings of $2.48 per share in the second quarter. Revenue of $23.31 billion also beat expectations. J&J expects to sell $2.5 billion of its one-shot Covid vaccine this year, even as concerns mount over its effectiveness against the delta variant. A new NYU study suggests that people who got the J&J vaccine get a second shot of it or a booster of the Pfizer or Moderna vaccines.

A worker restocks a display of Coca-Cola Co. soft drinks at a store in Orem, Utah, U.S., on Tuesday, Feb. 9, 2021.

George Frey | Bloomberg | Getty Images

Shares of Dow component Coca-Cola jumped about 2% in the premarket after the beverage giant reported better-than-expected earnings of 68 cents per share. Revenue of $10.13 billion also exceeded forecasts. Sales surpassed 2019 pre-Covid levels, prompting the company to raise its full-year outlook.

Verizon, also a Dow stock, rose about 1.5% in premarket trading, after the company beat estimates by 7 cents with adjusted quarterly profit of $1.37 per share. Verizon also reported better-than-expected revenue and subscriber growth, and raised its full-year outlook.

3. Netflix beats on paid subscriber growth but misses on earnings

In this photo illustration the Netflix logo in the App Store seen displayed on a smartphone screen.

Rafael Henrique | SOPA Images | LightRocket | Getty Images

Shares of Netflix fell in the premarket after the video-streaming giant late Tuesday missed estimates with second-quarter earnings of $2.97 per share. Revenue of $7.34 billion basically matched forecasts. Global paid net subscriber additions of 1.54 million beat expectations. Netflix also confirmed a push into gaming. The company recently hired video game executive Mike Verdu from Facebook. Netflix will be able to differentiate its gaming offerings because of its vast bank of intellectual property, COO Greg Peters said during the firm’s earnings call.

4. United plans to ramp up flights to meet strong demand

A United Airlines passenger jet lands at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019.

Chris Helgren | Reuters

Shares of United Airlines gained about 1% in Wednesday’s premarket, the morning after the carrier matched estimates with a second-quarter loss of $3.91 per share. Revenue beat expectations and quadrupled to $5.47 billion, thanks to a resurgence in air travel following last year’s pandemic-induced collapse in demand. Sales were still down 50% from 2019 levels. United expects to generate positive adjusted pretax income for the third and fourth quarters and plans to ramp up flights. Last week, Delta Air Lines and American Airlines also said they have seen an improvement in bookings and financial results.

5. WHO chief warns about ‘early stages of another wave’

The logo of Tokyo 2020 is displayed near Odaiba Seaside Park in Tokyo on July 7, 2021, as reports said the Japanese government plans to impose a virus state of emergency in Tokyo during the Olympics.

Kazuhiro Nogi | AFP | Getty Images

The world is in the “early stages of another wave” of Covid infections and death, World Health Organization Director General Tedros Adhanom Ghebreyesus said Wednesday. Speaking to International Olympic Committee members in Tokyo, Tedros also called on the world’s leading economies to share vaccines. With the Games set to open Friday, after being delayed a year, Tokyo’s new infections surged to a six-month high Wednesday. Olympics organizing chief Toshiro Muto on Tuesday refused to rule out canceling the Games if coronavirus cases spiked. A spokesperson later said organizers were “concentrating 100% on delivering successful Games.”

— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.

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US

Major U.S. companies take aim at Georgia’s new voting restrictions

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Republican Governor Brian Kemp signs the law S.B. 202, a restrictive voting law that activists have said aimed to curtail the influence of Black voters who were instrumental in state elections that helped Democrats win the White House and narrow control of the U.S. Senate, in this handout photo posted to Kemp’s Twitter feed on March 25, 2021.

Governor Brian Kemp’s Twitter feed | Handout via Reuters

Business executives across the United States are calling out efforts to restrict voting access, after Georgia Gov. Brian Kemp signed a bill into law that opponents say would disproportionately disenfranchise voters of color.

Among the overhaul of state elections, the bill includes a restriction of drop boxes, makes it a crime to provide food or water to voters lined up outside polling stations, requires mandatory proof of identity for absentee voting and creates greater legislative control over how elections are run.

The bill is one of many Republican-backed election efforts introduced across the U.S. after former President Donald Trump, and other GOP members, falsely claimed that last year’s election defeat was due to fraud. For Georgia, it comes after historic turnout in the state’s election, particularly among Black voters and voters of color, in November general and January runoff elections.

Now, civil rights groups, corporate leaders and Democratic officials are denouncing the law.

CNBC compiled a list of corporate responses to the bill:

  • Global asset manager BlackRock issued a statement Wednesday on LinkedIn.
    “Equal access to voting is the very foundation of American democracy. While BlackRock appreciates the importance of maintaining election integrity and transparency, these should not be used to restrict equal access to the polls. BlackRock is concerned about efforts that could limit access to the ballot for anyone. Voting should be easy and accessible for ALL eligible voters. Voting is not just a right, but a vital component of civil activity. We should encourage all eligible voters to play this essential role in our democracy,” CEO Larry Fink wrote.
  • Coca-Cola executive Alfredo Rivera said in a statement the company, which is headquartered in Georgia, is disappointed by the law. “As soon as Georgia’s legislature convened this year, our company joined with other Georgia businesses to share our core principles: We opposed measures that would seek to diminish or restrict voter access and we advocated for broad access, voter convenience, election integrity and political neutrality. Anything that inhibits these principles can lead to voter suppression. We took these steps because they align to our Purpose and the conscience we follow,” he said.
  • Georgia-based Delta airlines said in a memo to employees that the “final bill is unacceptable and does not match Delta’s values.” “After having time to now fully understand all that is in the bill, coupled with discussions with leaders and employees in the Black community, it’s evident that the bill includes provisions that will make it harder for many underrepresented voters, particularly Black voters, to exercise their constitutional right to elect their representatives. That is wrong,” CEO Ed Bastian said.
  • Pharmaceutical giant Merck said Wednesday that the company stands “strong on our core values including our commitment to social justice and the right of people to fully and freely participate in electoral processes.” “There is no more fundamental right than the right to vote. Democracy rests on ensuring that every eligible voter has an equal and fair opportunity to cast a ballot, free from restrictions that have a discriminatory impact. We all have an obligation to stand up against racism and other forms of discrimination whenever we see them,” the company added.
  • Porsche’s North American operations, headquartered in Georgia, issued a statement that “equal access to the polls for every voter is core to a democracy.” “As an Atlanta-based business, Porsche Cars North America (PCNA) supported the work of the Metro Atlanta Chamber with members of the Georgia General Assembly to maximize voter participation and ensure election integrity. We understand the legislative outcome remains subject to debate and hope a resolution can be found between all sides that encourages and enables every eligible vote,” the company said.
  • Georgia-based UPS said this week the company supports the ability and facilitation of all eligible voters to exercise their right to vote. “Like other businesses in the community, we actively engaged with political leaders in both parties and other stakeholders to advocate for more equitable access to the polls and for integrity in the election process across the state. We echo the statement by the Metro Atlanta Chamber and stand ready to continue to help in ensuring every Georgia voter has the ability to vote,” the company said.
  • Mercedes-Benz said that it “stands against efforts which discourage eligible voters to participate in this vital process.”
  • In a blog post, Microsoft President Brad Smith noted the company expressed concern about the law prior to its passage and laid out its opposition in further detail, such as narrowing the window of time voters can request an absentee ballot. “We recognize that some recent criticisms of Georgia’s legislation have proven inaccurate. But already, it’s clear to us that the new law contains important provisions that needlessly and unfairly make it more difficult for people to vote,” Smith wrote. “This new law falls short of the mark, and we should work together to press the Georgia legislature to change it,” he added.
  • Cisco CEO Chuck Robbins shared his concern for the new law in a tweet. “Our vote is our voice, and everyone deserves the opportunity to be heard. Governments should be working to make it easier to vote, not harder. Ensuring equal #VotingRights isn’t a political issue, it’s an issue of right and wrong,” he said.
  • Home Depot, which is headquartered in Georgia, said that it will work to ensure its workers across the country have the resources and information to vote. “We believe that all elections should be accessible, fair and secure and support broad voter participation.”

In a statement Wednesday to CNBC, Georgia Gov. Brian Kemp defended the law and specifically took aim at Delta’s chief executive. 

“Today’s statement by Delta CEO Ed Bastian stands in stark contrast to our conversations with the company, ignores the content of the new law and unfortunately continues to spread the same false attacks being repeated by partisan activists,” Kemp, a Republican, said. 

“Mr. Bastian should compare voting laws in Georgia — which include no-excuse absentee balloting, online voter registration, 17 days of early voting with an additional two optional Sundays, and automatic voter registration when obtaining a driver’s license — with other states Delta Airlines operates in,” he added.

CNBC’s Frank Holland, Mike Wayland, Phil LeBeau, Sara Eisen, Amelia Lucas, Kevin Stankiewicz and Leslie Picker contributed to this report.



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Business

13 consumer stock picks for when the economy takes off

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A customer selects bar of Dove soap, a Unilever product, at a Sainsbury’s supermarket in London, U.K.

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Goldman Sachs has named a slew of consumer stocks that could rally alongside the reopening of the global economy following the coronavirus pandemic.

In a research note last week focused on European stocks, the investment bank noted that a handful of consumer staples — i.e. companies whose products tend to always be in demand, even in times of economic downturns — could be about to see significant price gains. This despite expectations of rising inflation that is often viewed as a dampener on demand for consumer goods.

Here’s a list of the 13 stocks, all buy-rated by Goldman Sachs:

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