Dow futures jump 200 points as investors evaluate latest batch of earnings: Live updates

Credit Suisse on Thursday reported a net loss for the fourth quarter and a full-year loss, which fell short of expectations as the Swiss bank continued its comprehensive strategic overhaul.

The lender’s net loss attributable to shareholders was 1.4 billion Swiss francs ($1.51 billion) in the fourth quarter, which Eikon said was worse than analysts’ forecasts of a loss of 1.32 billion Swiss francs.

Credit Suisse expects another “significant” full-year loss in 2023 before returning to profitability in 2024.

CEO Ulrich Koerner told CNBC on Thursday that the full results were “completely unacceptable,” but stressed the need for the ongoing multi-year transformation program.

Read the whole story here.

-Elliot Smith

Some companies may struggle to service their existing debt as banks continue to tighten their lending standards for commercial and industrial loans, Lawrence Gillum, LPL’s fixed income strategist, said in a report on Wednesday.

The Federal Reserve reported earlier this week that loan officers at major domestic banks have raised the threshold for commercial and industrial firms to seek credit, and potential borrowers have also reduced their loan demand. Commercial and industrial loans, or C&I loans, are short-term loans to businesses that are often backed by corporate collateral. These loans are an important source of funding for lower-rated companies, Gillum said, because borrowing or issuing stock can sometimes be too restrictive and costly.

Gillum says tighter lending could lead to higher bond yields and spreads for some companies. This increases the risk that high-yield companies will default and be unable to access emergency financing from C&I loans when needed. That risk will only be exacerbated if the economy contracts this year, Gillum added.

“While we favor high yield credit from a strategic perspective (for investors with a longer-term time horizon), we would caution investors interested in allocating new assets in this space as there is likely to be increased volatility in the near term,” wrote gillum .

– Pia Singh

Wednesday night’s earnings reports reveal more evidence that consumers are spending on experiences.

Revenue for Disney’s parks and experiences business exceeded expectations as guests flocked to the parks during the holidays, according to the company, which also cited “increased guest spending.” CEO Bob Iger said on the call that demand for parks is “extraordinary right now,” but it wouldn’t be wise to let more people in and dilute the guest experience or charge more for tickets.

Casino and hotel operators MGM and Wynn saw a similar trend. AT MGM:

• Room revenue increased 46%
• Average daily rates increased by 30%
• And the occupancy rate was 91%

Meanwhile at Wynn:

• Vegas casinos revenue increased by 17%
• Room revenue increased by 20%
• Entertainment and retail sales soared 36%
• Average daily rates increased by 12%
• Utilization around 90%

— Robert Hum, Tanaya Macheel

These are the stocks making the biggest moves in extended trading:

• Confirm – The buy now, pay later company plunged 19% in extended trading as second-quarter earnings and sales missed analyst estimates, according to Refinitiv. CEO and founder Max Levchin also announced the layoff of 19% of the workforce effective immediately.
• Mattel — Shares plunged 12% after the company said shoppers bought fewer toys this holiday season and fourth-quarter sales fell 22% year over year.
• Disney — Shares rose more than 5% after the company reported a smaller-than-expected drop in subscribers and a hit to revenue and earnings. CEO Bob Iger also announced that Disney would cut 7,000 jobs as part of a cost-cutting and reorganization plan.

For more details and other major movers, see the full story here.

– Tanaya Macheel

Stock futures were little changed to begin trading Wednesday night.

Dow Jones Industrial Average futures were up 27 points, or 0.08%. S&P 500 futures were just above the zero line at 0.01% and Nasdaq 100 futures were slightly up 0.04%.

– Tanaya Macheel