Are we about to see The Hangover Part 3? Stocks have tanked the past two days on talk of the Fed pulling its punchbowl. But so far this morning, futures have been up more than 1/2%. There was so much red yesterday, it's tough not to think of the day as an utter bloodbath. The S&P had its worst session since 2011, losing 2.5%. Both the Dow and NASDAQ also fell well over 2%. So, what should traders expect before they get a weekend breather from all the turmoil? We have special team coverage with Yahoo! Finance Senior Columnist Mike Santoli and our Editor-in-Chief Aaron Task in the video above.
STOCKS TO WATCH
First up is Darden (DRI) restaurants, which just has just reported earnings. The company made $1.01 a share missing estimates by 3-cents, though its revenues actually beat the forecast. Sales were up 11% for the quarter, helped by aggressive promotions and new menu items at Olive Garden and Red Lobster. Shares of Darden are up 13-% this year, now outperforming the larger markets.
Next up is Carmax (KMX), which will be reporting in just a little while. The stock dropped more than 6% in yesterday's massive selloff. Carmax is expected to post earnings of 58-cents a share up from 52-cents a year ago on a sharp rise in revenue. The company has been in high gear, having posted back-to-back quarters of double-digit growth in both sales and profit. Even with yesterday's losses shares of Carmax are up 60% over the last year.
Now we look at Oracle (ORCL), which has been down more than 8% in early trading. Oracle released its quarterly report after yesterday's closing bell. Excluding items it matched on earnings at 87-cents a share. That was up from 69-cents a year ago, but revenue fell short at $10.9 billion. The company is blaming weak sales in Asia and Latin America. But also of concern is the shift to cloud computing. Even before this morning's drop, shares were down 4% this year, largely because of a plunge after the company's last earnings report. By the way Oracle also announced yesterday that it will be moving over the NYSE in July.
Finally there's Discover (DFS), which was originally supposed to report earnings on Monday but is now set to release the numbers today. Analysts expect the company to post profits of $1.14 a share up from a buck a year ago on sales just topping $2 billion. Last week Oppenheimer labeled Discover an outperform saying the company has managed to diversify its lending during a period of slow credit growth.
ODDS AND ENDS
Sprint (S) has pulled ahead in the race for Clearwire (CLWR). It's now offering $5 a share for the half of Clearwire that it doesn't already own. That tops an offer from Dish newtork for $4.40 a share.
Ever wonder what the really big investors do when the markets tank like they did yesterday? Well, in the case of billionaire Carl Icahn, he opened up a Twitter account. The hyperactive activist scripted his inaugural tweet around 11:30, writing, "Twitter is great. I like it almost as much as I like Dell." At last check Icahn already had more than 7,000 followers.