Crude Oil Surges 3%; Delta Air Lines Posts Better-Than-Expected Earnings - IGM Biosciences, Delta Air Lines

U.S. stocks experienced a decline toward the end of trading on Friday, with the Nasdaq Composite dropping over 400 points. The Dow Jones Index fell by 1.19% to close at 42,129.32, while the NASDAQ decreased by 1.16% to settle at 19,252.53. The S&P 500 was also down, declining by 1.10% to 5,853.26.

On the sector front, shares in the energy sector saw a small increase of 0.6% during the day. In contrast, the information technology sector faced a significant drop, falling by 2.1%.

Delta Air Lines Earnings Report

Delta Air Lines, Inc. (NYSE:DAL) announced its fourth-quarter financial results, which exceeded analysts’ expectations. The airline reported an adjusted operating revenue increase of 5.7% year-over-year, amounting to $14.437 billion. Its GAAP operating revenue reached $15.56 billion, reflecting a 9.4% increase from the previous year and surpassing the projected consensus of $14.212 billion.

Delta also revealed that its adjusted average fuel cost was $2.34 per gallon, a significant decrease from $3.00 in the same quarter last year. The company reported an adjusted earnings per share (EPS) of $1.85, marking a 44.5% increase year-over-year, which outpaced the forecast of $1.76.

Movers in the Market

Several companies saw significant changes in share prices:

• Walgreens Boots Alliance, Inc. (WBA) shares surged by 28%, reaching $11.82 after reporting impressive first-quarter results.
• Vision Marine Technologies, Inc. (VMAR) experienced a remarkable boost, rising 53% to $2.33 after it regained compliance with Nasdaq’s minimum equity requirements.
• Savers Value Village, Inc. (SVV) also performed well, with shares increasing by 12% to $10.50 following positive preliminary sales updates.

Declines in Share Prices

On the other hand, some companies faced challenges:

• IGM Biosciences, Inc. (NASDAQ:IGMS) saw its shares plummet by 66%, closing at $2.1250 after announcing it would stop further development of two projects.
• Shares of Maravai LifeSciences Holdings, Inc. (MRVI) declined by 22%, down to $4.81 following an announcement of preliminary revenues.
• Mercury General Corporation (MCY) shares dropped by 21% to $48.05 after the company forecasted significant wildfire losses in Southern California.

Commodities Market Overview

Turning to commodities, oil saw an increase of 3.1%, trading at $76.21. Gold prices also rose by 0.9% to reach $2,715.20. Silver increased by 0.9% to $31.290, while copper fell slightly, dropping by 0.2% to $4.3025.

International Market Activity

In European markets, shares were mainly lower, with the Eurozone's STOXX 600 declining by 0.84%. Germany’s DAX 40 fell by 0.50%, while France's CAC 40 decreased by 0.79%. In Spain, the IBEX 35 Index dropped 1.5%, and London's FTSE 100 slipped by 0.86%.

Asian markets also witnessed declines, with Japan's Nikkei 225 falling 1.05%, China's Shanghai Composite Index dipping 1.33%, and Hong Kong’s Hang Seng Index declining by 0.92%. India’s BSE Sensex was down by 0.31%.

Economic Indicators

• The nonfarm payrolls for the previous month increased by 256,000, notably higher than November's revised figure of 212,000 and exceeding economists' expectations of 160,000.
• The unemployment rate improved, dropping from 4.2% to 4.1%, which was lower than the predicted unchanged reading.
• Average hourly earnings improved by 0.3% compared to last month, consistent with expectations but slower than November's increase of 0.4%. Year-over-year, wages rose by 3.9%, slightly below the 4% forecast.
• Lastly, the University of Michigan's consumer sentiment index fell to 73.2 in January compared to 74 in December.

Overall, the markets experienced a volatile day, influenced by significant shifts in stock prices and sector performances. Looking ahead, investors will monitor how upcoming economic data and corporate earnings reports develop amid these market fluctuations.

stocks, market, earnings