Main subjects of the day
US stock futures rose on Thursday, reacting to strong results from Meta Platforms.
By 8:44 AM, Dow Jones futures were up 142 points, or 0.42%. S&P 500 and Nasdaq-100 futures advanced 0.45% and 0.84%, respectively.
Risky assets fell again on Wednesday. What moved the markets the most yesterday was the news that the FDIC, the US correspondent to the FGC, is considering limiting First Republic Bank’s access to the Fed’s borrowing windows. The regional bank’s balance sheet came out on Monday night, and showed a sharp contraction in lending. Despite this, the result of the American indexes was mixed. The S&P 500 fell due to this concern about the health of the banking system, on the other hand, the Nasdaq closed higher driven by the balance sheets of Alphapet and Microsoft, which recorded better-than-expected numbers.
Thursday has a full agenda for quarterly results. Ahead of the market open, investors are watching gains from American Airlines, Ceterpillar, Eli Lilly, Valero, Southwest Airlines, Mastercard, Crocs, Altria, Abbvie, Merck, among others. After market close, results from Amazon and Intel are widely expected, as are Snap Inc, Cloudflare, First Solar, United States Steel, Pinterest, Amgen and Gilead Sciences.
Meta shares jumped premarket after the company reported its first sales increase in four quarters, and also issued stronger-than-expected guidance for the current period.
Ahead of major economic data releases, gross domestic product, a measure of all goods and services produced in the period, rose at an annualized pace of 1.1% in the first quarter, the Commerce Department said on Thursday. Economists polled by Dow Jones had expected 2% growth.
The report also showed that the personal consumer spending price index, a measure of inflation that the Federal Reserve closely tracks, rose 4.2%, above the estimate of 3.7%.
The number of Americans filing for unemployment benefits in the week ended April 22 fell by 16,000 to 230,000. Overall, 1.86 million people received unemployment benefits in the week ended April 15, 3,000 fewer than the week before.
Other important data for today include Pending Home Sales for March and the Kansas City Federal Reserve Manufacturing Index reading. The Federal Reserve’s preferred inflation indicator, the main PCE deflator, will be released on Friday.
Wall Street Corporate Highlights for Today
First Republic Bank (NYSE:FRC) – Shares fell 1.6% in the aftermarket on Wednesday after falling nearly 30% during regular trading. The selloff at the troubled regional lender has gained momentum since Monday, when it reported a significant outflow of deposits in the last quarter.
Illumina (NASDAQ:ILMN) – Illumina CEO Francis deSouza disclosed the company’s controversial acquisition of Grail on Wednesday after the cancer-testing developer’s revenue doubled last year. Grail delivered 20,000 tests in the first quarter alone, he noted.
Amazon (NASDAQ:AMZN) – Amazon Web Services CEO Adam Selipsky and head of human resources Beth Galetti sent notes to employees in the US, Canada and Costa Rica informing them of job cuts in the computing divisions cloud and human resources. Amazon will report earnings after the market closes.
Walt Disney (NYSE:DIS) – Walt Disney Co was up 0.59% in premarket. The company sued Florida Governor Ron DeSantis on Wednesday, alleging the Republican waged a “relentless campaign to arm the power of government.” The federal lawsuit alleges that DeSantis “orchestrated at every turn” a campaign to punish Disney that now threatens the company’s business.
JPMorgan (NYSE:JPM) – A week before the next Federal Reserve meeting, JPMorgan unveiled an AI-powered model that aims to analyze 25 years of Fed speeches and uncover possible trading signals. The tool called the Hawk-Dove Score, also available to the European Central Bank and the Bank of England, is expected to expand to more than 30 central banks around the world in the coming months.
Halliburton Co (NYSE:HAL) – Schlumberger (SLB) and Halliburton have warned investors that the magnitude of unpaid work in Mexico has increased over the past three months. According to Bloomberg, SLB had $1.2 billion in Mexico-related accounts receivable at the end of last month, and Halliburton said unpaid accounts from its unnamed “major customer” in Mexico had expanded.
TotalEnergies (NYSE:TTE) – TotalEnergies said Thursday it has accepted an offer to sell its carbon-heavy Canadian oil sands operations to Suncor Energy (SU) for $4.1 billion, with possible additional payments of up to $ 450 million.
Eli Lilly (NYSE:LLY) – Eli Lilly announced Thursday that its experimental weight-loss therapy, tirzepatide, generated up to 15.7% weight loss, and the company is waiting for the FDA to decide on its approval at the end of 2023.
Earnings
Meta Platforms (NASDAQ:META) – Facebook’s parent rose 11.4% premarket after announcing better-than-expected results. Meta reported revenue of $28.65 billion, beating analysts’ estimate of $27.66 billion, according to Refinitiv data. Meanwhile, Reality Lab, the company’s metaverse venture, posted nearly $4 billion in operating losses.
Roku (NASDAQ:ROKU) – The streaming TV platform was flat in premarket after reporting mixed Q1 results. Roku lost $1.38 per share, while analysts had expected losses per share of $1.37. Revenue beat estimates to $741 million versus an analyst estimate of $708.5 million. Roku also raised its current-quarter revenue outlook to $770 million, beating Wall Street’s estimate of $768 million.
Ebay (NASDAQ:EBAY) – The e-commerce platform jumped up to 3% premarket after beating first-quarter earnings and revenue estimates. Ebay had adjusted earnings of $1.11 per share, better than an estimate of $1.07, and revenue of $2.51 billion, versus an estimate of $2.48 billion, according to data. by Refinitiv. Ebay said it forecast second-quarter earnings per share of between $0.96 to $1.01, while analysts estimate $0.99 per share. Ebay’s estimated quarterly revenue of $2.47 billion to $2.54 billion beat analysts’ consensus projection of $2.43 billion.
Align Technologies (NASDAQ:ALGN) – Orthodontics stocks pared the slide in extended trading, and were flat in premarket trading. The company’s first-quarter earnings and revenue were above analyst estimates, according to Refinitiv data. Align stock is already up 68% year to date, until post-report movement.
ServiceNow (NYSE:NOW) – The digital workflow company fell -1.99% after first-quarter earnings came in above Wall Street expectations. Earnings per share of $2.37 beat analysts’ estimates by 33 cents, according to Refinitiv. The company reported revenue of $2.1 billion, versus an estimate of $2.08 billion, and second-quarter and full-year subscription revenue was higher than expected.
KLA (NASDAQ:KLAC) – The semiconductor equipment maker fell 2.4%, although the company’s quarterly earnings and revenue came in above analyst estimates, fiscal fourth quarter earnings and revenue outlook were below expectations, according to FactSet data.
Pioneer Natural Resources (NYSE:PXD) – The oil and gas company was down 1.57% premarket after first-quarter earnings beat estimates while revenue was below consensus. Pioneer reported earnings per share of $5.21 against an analyst estimate of $4.86, while revenue of $4.54 billion compared with an estimate of $4.89 billion, according to FactSet data. Total cash flow and cash flow per share were a little light on the estimates. Pioneer also announced plans for a new CEO to lead the company through the end of 2023.
Teladoc Health Inc (NYSE:TDOC) – Shares in Teladoc were up about 4.8% in premarket trading after the telemedicine company beat expectations with its first-quarter results and posted a better-than-point outlook predicted average. The company posted a first-quarter net loss of $69 million, or $0.42 per share, while posting a loss of $6.7 billion, or $41.58 per share, in the year-earlier period. The FactSet consensus was a loss of 50 cents per share.
Deutsche Bank (NYSE:DB) – Deutsche Bank rose 1.32% premarket after announcing it will cut 800 jobs in a new cost-cutting campaign, and reporting a larger-than-expected rise in the former’s quarter profit. Germany’s biggest bank has produced solid profits at a time when banks have had to be bailed out in the US and Switzerland.
Harley Davidson (NYSE:HOG) – Harley-Davidson jumped 4.4% after the motorcycle maker beat expectations for profit and revenue, according to consensus estimates from Refinitiv. HOG reported first-quarter earnings of $2.04 per share, versus an estimate of $1.39, on revenue of $1.56 billion that was above the consensus of $1.36 billion.
Eli Lilly (NYSE:LLY) – Shares of the Indianapolis-based drugmaker rose more than 3% after reporting better-than-expected first-quarter revenue and raising its full-year guidance on both revenue and profit lines. Lilly generated $6.96 billion in revenue, beating the $6.86 billion expected by analysts, according to Refinitiv. Adjusted earnings per share, however, were 11 cents short of estimates of $1.62.
Southwest Airlines (NYSE:LUV) – The Dallas-based carrier saw its shares drop 4% after posting a larger-than-expected first-quarter loss as a result of the holiday crisis, when it canceled more than 16,000 flights in late December. The incident resulted in a revenue hit of $325 million in the first quarter, Southwest said.
Honeywell International (NASDAQ:HON) – Honeywell advanced 1.8% after beating expectations for earnings and revenue in its final quarter. The conglomerate reported earnings of $2.07 per share ex-items for the first quarter, better than Wall Street’s $1.93, on revenue of $8.86 billion, which beat the consensus of $8.52 billion.
American Airlines (NASDAQ:AAL) – The Fort Worth, Texas-based carrier rose 0.4% premarket after posting first-quarter earnings that matched estimates, although revenue came in below expectations. American reported 5 cents a share ex-items for the first quarter, in line with Wall Street, on revenue of $12.19 billion, compared with analysts estimates of $12.20 billion.
Merck (NYSE:MRK) – The New Jersey-based pharmaceutical maker advanced about 1.5% after beating estimates in its most recent quarter. Merck reported earnings of $1.40 per share ex-items for the first quarter, better than analysts’ estimate of $1.32, on revenue of $14.49 billion that beat consensus of $13 .78 billion, according to Refinitiv.
Northrop Grumman (NYSE:NOC) – The defense contractor rose 1.6% after first-quarter earnings of $5.50 a share beat analysts’ estimate of $5.09, according to Refinitiv, while revenue of $9.3 billion was above the consensus of $9.173 billion.
Caterpillar (NYSE:CAT) – The construction equipment maker earned an adjusted $4.91 per share in the latest quarter, up from an expected $3.78, according to Refinitiv consensus, on revenue of $15, 86 billion, against an estimate of US$ 15.255 billion. Caterpillar shares were down 0.1% in early trading.
Bristol-Myers Squibb Company (NYSE:BMY) – Bristol Myers posted earnings of $2.05 per share ex-items for the latest quarter, better than forecasts of $1.97 per share, according to Refinitiv . Revenue of $11.34 billion missed expectations of $11.49 billion. The stock was up 0.1% in premarket trading.
Comcast (NASDAQ:CMCSA) – Shares of the media conglomerate rose 3.5% premarket after posting better-than-expected first-quarter gains, according to Refinitiv, despite losses at streaming service Peacock and a slump in residential broadband subscribers.
With information from CNBC, WSJ, FX empire, FX Street, Reuters, The Street, Seekingalpha, MarketWatch, Bloomberg