The stock market managed to claw its way to fractional gains on Monday, but did so on fairly light volume. Just 6.2 billion shares exchanged hands on the U.S. exchanges — 2 billion below the 20-day average. The S&P 500 and Dow Jones Industrial Average gained 0.1% and 0.12%, respectively, fitting in with the slight increase in crude oil.
However, the broader markets could see some downside action in Tuesday’s trading, following Europe’s slide on news that Brussels was targeted in a series of fatal terror attacks.
A few stocks to keep an eye on today include Nike Inc (NYSE:NKE), Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) and YY Inc (ADR) (NASDAQ:YY).
Here’s why.
Nike Inc (NKE)
The sportswear retailer’s shares experienced some late afternoon movement Monday ahead of the company’s fiscal third-quarter report, and if premarket action is any indication, Tuesday could see additional gains heading into the report.
Nike is expecting earnings of 49 cents per share, up from 45 cents from the year-ago period, on revenues that are expected to grow 10% to $8.2 billion.
The company wowed athletes and gym rats everywhere Monday when announcing plans to roll out a self-tying shoe, dubbed the HyperAdapt 1.0. Expect it in Nike stores later this year.
Nike rose nearly 3% on Monday, and was set to open another 1% higher today.
Petroleo Brasileiro SA Petrobras (ADR)
The South American energy company’s share rose slightly Monday, but that was just the calm before the storm. After releasing fiscal fourth-quarter results, PBR slid in Tuesday’s premarket action.
Petrobras reported a record loss of $9.6 billion for 2015 as it remains embroiled in a corruption investigation. The oil giant is investigating its human resources department for potentially conducting practices that left it exposed to liabilities, according to Reuters.
The investigation has been ongoing for two years, and it includes an alleged fraud scheme in which “Petrobras executives colluded with contractors to overbill the company over the course of a decade, bribing politicians and political parties to keep the scheme going.”
A former Petrobras executive was arrested in Portugal in the current probe that is looking at more than 50 politicians and a large number of the country’s top executives.
All that combined with lower oil prices and higher borrowing costs to really put the squeeze on the company. Even after a rally over the past month, shares are off 42% from their 2015 highs.
Petrobras also announced plans to slash its staff by 15% (in addition to the 30% of workers it cut in January), amounting to 12,000 workers losing their jobs.
PBR stock was off 5% in Tuesday’s premarket trading.
YY Inc (ADR) (YY)
The China-based social platform’s stock climbed after the bell Monday after reporting better-than-expected fourth-quarter earnings.
YY posted EPS of 96 cents for its Q4, beating the analyst estimate of 83 cents. Quarterly revenue was around $293.3 million, marking a 62.3% increased year-to-year.
The company’s online music and entertainment branch was especially profitable, as its revenue grew 69.3% to $176.8 million compared to the year-ago period.
CEO David Xueling Li added that YY “saw continued top-line growth momentum across our core business segments, namely online music and entertainment, online dating, and Huya broadcasting.” Huya.com is one of the company’s online platforms for social activities, which mostly offer users access to music, gaming and other entertainment.
YY stock was set to open more than 3% higher on Tuesday.
