Major indices in the US markets ended Thursday’s session sharply lower in the wake of data showing January’s annual inflation hit 7.5%, a new four-decade high.
The S&P 500 index, Dow Jones Industrial Average and Nasdaq Composite Index all fell at least 1.4%.
Data from the Wall Street Journal showed that all 11 sectors of the S&P 500 closed in the red with shares of fast-growing companies hit hardest. Tech stocks in the S&P 500 dropped 2.8%, with software, IT services and semiconductor companies all mostly falling.
US Markets Company News
Walt Disney (DIS)
In company news, shares of Walt Disney (DIS) gained 3.3% after reporting revenue for the first quarter of its fiscal year 2022 which rose by 345 to $21.8 billion.
Sales at its parks business more than doubled and streaming subscriber growth also outpaced expectations. The number of Disney+ paid subscribers rose to 129.8 million in the first three-month period, marking a 37% increase compared to the corresponding trimester a year ago. ESPN+ users flew 76% to 21.3 million, while Hulu subscriptions grew 15% to 45.3 million.
Uber Technologies ($ Uber)
Uber Technologies, Inc. said on Wednesday that its revenue in the fourth fiscal quarter increased by 83% on a yearly basis, reaching $5.77 billion. The companies net income came at $892 million, while its diluted net income per share amounted to $0.44, in contrast to a $0.54 net loss per share for the last three months of 2020.
On an annual level, Uber’s revenues reached $17.45 billion, marking a 57% jump year-over-year, while the company experienced a total net loss of $496 million.
Coca-Cola ( $KO)
The Coca-Cola Co. reported its fourth-quarter net revenue increased 10% on a yearly basis, reaching $9.5 billion, while net income jumped 66% to $2.4 billion and the earnings per share (EPS) grew 65% to $0.56.
In the full-year 2021, revenue rose by 17% compared to 2020 to $38.6 billion, income was up 26% to $9.8 billion, with the EPS also gaining 26% and landing at $2.25.
PepsiCo Inc.
PepsiCo Inc. said on Thursday that its net revenue for the fourth quarter of 2021 rose by 12.4% to $25.2 billion on a yearly basis. Net income fell 27.8% year-on-year to stand at $1.3 billion.
For the full year, the company’s net revenue was up 13% to $79.4 billion while net income was up 7% to $7.6 billion, with the EPS growing 7.2% to $5.49.
The company expects a 6% increase in organic revenue in 2022 with an 8% rise in core constant currency EPS. Total cash returns to shareholders are estimated at $7.7 billion, including dividends of $6.2 billion and share repurchases of $1.5 billion.
Philip Morris International ( $PM)
Philip Morris International, a Swiss-American multinational cigarette and tobacco manufacturing company, announced on Thursday the company’s net revenues in the fourth quarter of 2021 rose 8.9% on the year to $8.1 billion, above analyst projections. The company’s operating income stood at $2.95 billion, up 1.4% compared with the same period last year, while reported diluted earnings per share (EPS) were $1.34, up by 5.5%.
For the fiscal year 2021, net revenues rose 9.4% to $31.4 billion. Meanwhile, operating income improved by 11.2% to $12.98 billion, with reported diluted earnings per share (EPS) of $5.83, up by 13%.
Twitter Inc.’s fourth-quarter revenue increased 22% year-on-year ago to $1.57 billion, while its operating income declined to $167 million.
Twitter’s average number of daily active users jumped 13% to 217 million. Twitter’s Board of Directors also approved a new $4 billion share repurchase authorization.
Pfizer Inc.
Pfizer Inc. announced on Tuesday its revenue for the fourth quarter of 2021 skyrocketed by 105% to $23.8 billion. Net income for the quarter grew from $847 million to $3.4 billion.
For the full year 2021, revenue was up 95% to $81.2 billion, EPS went from $1.63 in FY 2020 to $3.85, while net income surged from $9.1 billion to $22 billion.
The company raised its 2022 revenue guidance to a record-high range between $98 and $102 billion.
AstraZeneca
AstraZeneca’s total revenue annually jumped by 62% in the last quarter of 2021 to $12.01 billion, according to the company’s report published Thursday. The vaccine maker posted a 56% increase in core earnings per share to $1.67.
Regarding full-year guidance for 2022, AstraZeneca said it expects its total revenue to expand by a “high teens” percentage, with core earnings per share surging by a “mid-to-high twenties” percentage.
BlackRock ( $BLK) to offer Crypto Trading
BlackRock, the world’s largest asset manager, is likely to enable its clients to trade in cryptocurrencies, CoinDesk reported on Wednesday, citing three people with knowledge of the plans.
The asset management firm will provide the service via its Aladdin investment platform, the report added.
Softbank’s sale of Arm chip business to Nvidia falls through
The $66 billion sale of SoftBank Group Corp.’s UK-based chip business Arm to Nvidia Corp. has fallen through, The Financial Times reported.
The company will recieve a breakup fee of up to $1.25 billion, according to the media outlet, and it will unload arm trough an initial public offering by the end of 2022.
The deal collapsed after regulators in the United States, United Kingdom and the European Union warned about how the move would affect competition on the semiconductor market.
Record Week for Big tech as US Markets finish best week for 2022
