Good Evening. Here is everything you need to know about today’s recap on the in’s and out’s of the major market and economic events.
U.S. stocks fell sharply Tuesday to start the holiday-shortened week lower as investors monitored heightening tensions between Russia and Ukraine.
The Dow Jones closed 1.42% lower, while the S&P 500 closed 1.01% lower. The Nasdaq Composite also dropped by 1.23%.
Following months of speculation, Volkswagen (VLKAF) announced on Tuesday that it was looking into the prospect of separating Porsche from its other luxury brands, Bentley, Bugatti, and Lamborghini.
Porsche is currently owned 100% by Volkswagen Group, which is in turn managed by Porsche SE, a financial holding company.
Porsche’s spin-off could generate new funds to help Chief Executive Herbert Diess carry out his agenda. According to Bloomberg Intelligence, the luxury carmaker might be worth up to $96 billion. Volkswagen CEO Herbert Diess is under pressure to bring the company up to Tesla’s level. Volkswagen also believes that the move will help to increase its stock market valuation, which has been lagging, particularly in comparison to Tesla (but who’s isn’t).
However, the company warned “the conclusion of the Framework Agreement is subject to the approval of the Management Board and the Supervisory Board of Volkswagen AG. A final decision have not yet taken.”
Home Depot Inc. (HD) posted fourth-quarter sales that topped sales and profit projections before the market opened Tuesday morning, boosted by robust demand for tools, paint, and building materials during the holiday season.
In the fourth quarter, the company’s overall net revenues increased 10.70% to $35.72 billion. In the same time period, Home Depot’s same-store sales increased by 8.10%.
Since the start of the COVID-19 epidemic two years ago, sales at Home Depot have increased by more than $40 billion, owing to an upsurge in do-it-yourself home projects.
Despite supply chain constraints and concerns that the lifting of pandemic restrictions and a return to in-person activities may lead to lower home renovation spending, Home Depot surpassed $150 billion in yearly sales for the first time in its history in the fiscal year ended January 2022.