US stocks look set to open higher on Wednesday, with futures up as investors hope that renewed talks between Russia and Ukraine will lead to a diplomatic solution to their conflict.
Oil and gas are lower, as is gold, while Bitcoin has jumped by more than 8%
Here are some of today's trending stocks:
Gevo Inc (NASDAQ: GEVO)
Gevo stock jumped on Tuesday, with the company attracting interest in the wake of US bans on imported Russian oil. This move from the Biden administration has led to US-based oil and gas stocks jumping, though renewable energy has also benefitted as the crisis has shone a light on the perils of fossil fuel reliance.
Gevo, a renewable chemicals and biofuels specialist, has found itself in a prime position to benefit from this attention.
However, while the stock soared by almost 30% in Tuesday's trading, it has fallen back a little in pre-market trading. This indicates the stock price my roll back a little on Wednesday.
Schlumberger NV (NYSE: SLB)
Speaking of fossil fuels, oilfield services provider, Schlumberger has also generated interest off the back of US action against Russian oil imports. In this case, it's not all good news, though.
The company's CEO has warned that the conflict in Ukraine will adversely impact its first-quarter results. This is because around 5% of its revenue comes from work on oilfields in Russia.
Chief executive Olivier Le Peuch commented:
"(The) recent events will exacerbate an already tightly supplied oil and gas market. This will likely require increased global investment across geographies to ensure the security of the world's energy supply.”
Like Gevo, the stock appears primed to roll back on some of its gains Wednesday after rising by more than 7% yesterday.
Caterpillar (NYSE: CAT)
American construction company Caterpillar Inc. (NYSE: CAT) closed at $210 yesterday after shares jumped by 6.76% during Tuesday's session. This puts it on pace for the biggest five-day jump in over 20 months.
The company is attracting investor interest as a potential inflation hedge. With Russia being removed from commodity trading, construction, mining, and the like will have to be ramped up elsewhere, hence the heightened interest in Caterpillar stock.
On the back of this reasoning, Jefferies analyst Stephen Volkmann upgraded Caterpillar (CAT) stock to Buy with a share price target of $260 a share, up from $215.
Over the past year, CAT stock has traded between $179.67 and $246.69.
Nikola Corporation (NASDAQ: NKLA)
Electric vehicle maker Nikola Corporation (NASDAQ: NKLA) is again trending as volatility continues in its share price.
Yesterday, NKLA stock climbed 13.7% to close at $7.55. It rallied on a better than expected Q4 earnings report and product update, while it also appears to be a beneficiary of Biden's decision to cut off Russian oil. However, this close is down -60.1% off its 52-week high vs. the subsector average change of -31.8%. It appears to be up again in pre-market trading by around 3%.
Over the past year, Nikola Corp (NKLA) has traded between $6.41 and $19.52. The company is not profitable, and costs are escalating. However, if it can secure more orders for its zero-emission heavy-duty trucks, its share price may well show resilience.
JetBlue Airways Corp (NASDAQ: JBLU)
JetBlue Airways Corp (NASDAQ: JBLU) is trending on Wednesday, after a good day of trading on Tuesday saw the company's stock climb by 4.14% to settle at $11.95.
JetBlue Airways Corp. provides air transportation services. It carries more than 30 million customers a year to 86 cities in the US, Caribbean, and Latin America with an average of 850 daily flights.
47% of FactSet analysts have a Buy or Overweight rating on JBLU stock, while 47% say Hold, and 6% say Sell. Senior Transportation Analyst, Scott H Group of Wolfe Research recently raised his Hold rating on JBLU stock.
The company enjoyed a good recovery pace in Q4, but the rising fuel price will undoubtedly add pressure to margins. Nevertheless, if COVID-19 is behind us and air travel can resume unhindered, the company is optimistic it can grow margins and earnings through the coming year.
Robin Hayes, Chief Executive Officer & Director, JetBlue Airways Corp., recently said:
“As we look ahead, we believe JetBlue is positioned extremely well for future success as many of our investments come to fruition in 2022, and we remain well on track to restoring our earnings power.”
