Stocks set for another choppy session as earnings kick into high gear

Jerome Powell

Netflix, JNJ, and IBM earnings in focus

U.S. stock futures were pointing to another choppy session for Wall Street on Tuesday as traders brace for a slew of earnings reports that will help them analyze the impact of surging consumer prices and the Ukraine war on companies.

Netflix (NASDAQ: NFLX) will be in focus today as the streaming giant prepares to release its first-quarter subscriber and earnings report after the closing bell.

Analysts expect the company to post earnings of $2.90 per share on revenue of $7.93 billion.

IBM (NYSE: IBM) is expected to report earnings of $1.38 per share on revenue of $13.85 billion after the market close.

Johnson & Johnson (NYSE: JNJ) is seen reporting earnings of $2.61 per share on revenue of $23.67 billion.

Other major earnings to watch today include Lockheed Martin (NYSE: LMT), Hasbro (NYSE: HAS), and Interactive Brokers (NYSE: IBRK).

As of 5:30 a.m. ET, futures tied to the Dow gave away 20 points, or 0.06% to 34,293. S&P 500 futures dropped 7 points, or 0.16% to 4,379.75 while the tech-heavy Nasdaq 100 futures shed 47.75 points, or 0.34% to 13,860.

Apollo Global reportedly wants in on Twitter deal

Private equity titan Apollo Global Management (NYSE: APO) is considering participating in a bid for Twitter (NYSE: TWTR) after Elon Musk offered to buy the social media platform for $43 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.

According to the report, Apollo has held talks about backing a possible deal for Twitter and could provide Musk or another potential buyer with debt financing to support an offer.

The Journal also reported that Twitter is expected to officially turn down Musk’s offer of $54.20 a share in the coming days. Twitter is set to announce its quarterly earnings on April 28 and may provide more details at that time.

Last week, the NYPost reported that private-equity firm Thoma Bravo LP was also working on a possible rival bid to acquire Twitter.

Twitter stock was down 1.18% to $47.88 a share in the premarket trading session on Tuesday.

Airlines respond after Federal judge strikes down mask mandate

Meanwhile, a federal judge in Florida has thrown out the Covid-19 mask requirement on buses, planes, trains and other public transportation, arguing that the Centers for Disease Control and Prevention (CDC) had exceeded its authority.

In her ruling, Judge Kathryn Kimball Mizelle, who was appointed by President Donald Trump, overturned the 14-month-old mandate.

Mizelle branded it unlawful, arguing that the CDC had not sufficiently explained its decision and had breached the process for proper rulemaking about the directive.

Major U.S. airlines reacted to the ruling, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Alaska Airlines (NYSE: ALK), and Southwest Airlines (NYSE: LUV) saying that masks are now optional for travelers on their planes.