On Friday, US stock futures are higher after four consecutive days of losses, as investors weigh the jobs data and the possibility of an interest rate cut from the Federal Reserve. Also, there was a rebound in regional bank stocks, led by PacWest Bancorp, after a week of losses. Apple’s better-than-expected results also boosted sentiment.
By 8:31 AM, Dow Jones futures were up 162 points, or +0.49%. S&P 500 and Nasdaq-100 futures were up 0.59% and 0.39%, respectively.
On Thursday, risk assets in the US ended lower, due to banking stress, which became the main influencing factor in the markets, despite the Fed having signaled a possible pause in the cycle of high interest rates.The Dow Jones fell 286.50 points, or 0.86%, to close at 33,127.74 points. The S&P 500 was down 0.72% to close at 4,061.22 points. The Nasdaq Composite fell 0.49%, closing at 11,966.40 points. During the week, First Republic Bank closed and sold its portfolio to JP Morgan, in addition to more rumors about a possible sale of Pacwest and the cancellation of a merger between Tennessee banks and Canadian Toronto-Dominion Bank. As a result of these events, the index fell by more than 5% and the shares of some of the most affected banks suffered a considerable reduction.
US federal and state officials are investigating whether “market manipulation” led to the recent turmoil in bank stocks, with the White House vowing to watch for “short selling pressures on healthy bank assets”. According to analyst firm Ortex, short sellers profited $378.9 million on Thursday by betting against certain regional banks.
The Labor Department reported on Friday that job growth in April beat Wall Street’s expectations, despite instability in the banking sector and a slowing economy. Non-farm payrolls grew by 253,000, beating the forecast of 180,000. The unemployment rate stood at 3.4%, matching the lowest level since 1969 and below the 3.6% estimate.
Apple drove an improvement in market sentiment by delivering a set of results that beat expectations, as well as announcing a 4% increase in dividends and a $90 billion expansion to its share buyback program. On Friday’s earnings schedule are results for AMC, Warner Bros. Discovery, FuboTV, Cigna, among others.
Wall Street Corporate Highlights for Today
PacWest (NASDAQ:PACW) – After falling 50% on Thursday, PacWest Bancorp gained 18.9% in premarket trading on Friday, while regional bank Western Alliance Bancorp (WAL) rose 13% after falling 38 % on the previous day, following a report that state and federal officials are weighing the possibility of market manipulation in recent volatility in bank stocks.
Microsoft (NASDAQ:MSFT) – The CEOs of Alphabet (NASDAQ:GOOGL) and Microsoft met with the White House to discuss the risks of artificial intelligence, including potential security, bias and privacy threats. The White House announced $140 million in AI research investment from the National Science Foundation and commitments from leading AI developers to enable public evaluations.
Kenvue (NYSE:KVUE) – Johnson & Johnson (NYSE:JNJ) subsidiary Kenvue saw its shares close up 22% on Thursday after raising $3.8 billion through the largest initial public offering in the US since 2021. Kenvue shares opened at $25.53 after being quoted at $22, then falling to a low of $25.25 followed by a high of $26.97. The stock closed at $26.90.
Tesla (NASDAQ:TSLA) – On the Tesla website in China, it was possible to verify that the company increased the price of the most expensive cars, the Model S and the Model X. The automaker led by Elon Musk raised the price by 19,000 Chinese yuan (equivalent to to $2,749) for various versions of the models. That move came in the week that Tesla raised prices on the Model 3 and Model Y in China and other countries, including the US.
Duckhorn Portfolio (NYSE:NAPA) – Duckhorn Portfolio will purchase a production winery and plant vineyards in Alexander Valley, Sonoma County, Calif., the company said Thursday. The $55 million acquisition will be financed through the existing credit facility. The transaction is expected to close in the fourth quarter of 2023.
Icahn Enterprises (NASDAQ:IEP) – IEP shares rose nearly 10% premarket as activist investor Carl Icahn’s company said it will pay $2 per unit and faces no liquidity issues. Icahn Enterprises is in doubt after a short seller report earlier this week accused it of inflating its value.
HSBC (NYSE:HSBC) – Shares in HSBC were up about 1.3% in premarket trading on Friday, the day shareholders are expected to vote on proposals at the bank’s annual meeting, including on the separation of its businesses in Asia. Shares of HSBC in Hong Kong were trading down 0.6% on Friday. Resolutions 17 and 18 on the agenda, presented by a group of investors led by Ken Lui, call for a “strategic review” of the company, including a proposal for a spin-off and fixed dividends.
Berkshire Hathaway (NYSE:BRK.B) – Warren Buffett may get a few extra high fives as he walks into Berkshire Hathaway’s annual general meeting of shareholders this weekend, thanks to Apple. Berkshire is its second-largest institutional holder, with 895,136 shares, according to FactSet. Apple increased its quarterly dividend by 24 cents, putting about $214.83 million into Berkshire Hathaway’s pockets.
Earnings
Apple (NASDAQ:AAPL) – The tech giant rose about 2.21% premarket after a profit outrun. The company reported earnings of $1.52 per share and revenue of $94.84 billion for the fiscal second quarter. Analysts had forecast earnings of $1.43 per share and revenue of $92.96 billion.
Cigna (NYSE:CI) – Cigna rose 3% in premarket trading after beating last-quarter estimates and raising its full-year forecast. Cigna’s results were driven by lower medical costs and strong growth in its health insurance unit.
Warner Bros Discovery (NASDAQ:WBD) – The media company fell 2.3% premarket after reporting a quarterly loss, and its adjusted earnings were slightly below expectations. However, its streaming business overcame previous losses and posted a quarterly profit.
Bumble (NASDAQ:BMBL) – BMBL stock jumped 9.1% in premarket after Bumble posted better-than-expected quarterly sales as user demand for its dating app remained strong.
Carvana (NYSE:CVNA) – The used car dealership fell around 33.61% premarket. Carvana posted a first-quarter loss of $1.51 a share, missing estimates for a loss of $2 a share, according to Refinitiv. Revenue reached $2.61 billion, in line with analyst estimates.
Lyft (NASDAQ:LYFT) – Shares of the ride-sharing company fell more than 16% after Lyft reported its latest quarterly results. The company reported a net loss of $187.6 million. Revenue of $1 billion beat analysts’ estimates of $981 million, according to Refinitiv.
Expedia (NASDAQ:EXPE) – Shares of the online booking company are flat in premarket after rising nearly 6% in after-hours trading. Last quarter’s revenue was just above Wall Street forecasts. Expedia posted a loss of 20 cents a share, higher than analyst expectations of 4 cents a share, according to Refinitiv.
Coinbase (NASDAQ:COIN) – Shares of the cryptocurrency trading platform gained about 8.8% premarket. Coinbase posted a lower-than-expected loss of 34 cents per share on $773 million in revenue, versus an expected loss of $1.35 per share on revenue of $657 million, according to Refinitiv. The company had cut costs with layoffs in the quarter.
Block (NYSE:SQ) – Block rose 3.0% premarket after an earnings beat. Block reported adjusted earnings of 40 cents a share on revenue of $4.99 billion, while analysts had expected earnings of 34 cents a share on revenue of $4.59 billion, according to Refinitiv.
Booking Holdings (NASDAQ:BKNG) – Shares are flat premarket after falling 3% in extended trading after the company failed to update its full-year outlook. Booking reported adjusted earnings of $11.60 per share against consensus expectations of $10.61 per share, according to Refinitiv. Booking also reported $3.78 billion in revenue, which also beat the Street’s expectations.
DoorDash (DASH) – Shares of the food delivery service rose 4% premarket after quarterly results. The company posted a loss of 41 cents per share, less than the 58 cents per share loss forecast by analysts, according to Refinitiv. Revenue was higher than expected at $2.04 billion, versus Street’s $1.93 billion estimate.
DraftKings (NYSE:DKNG) – DKNG shares rose about 12.6% premarket after quarterly results beat revenue expectations and executives raised their full-year outlook.
Bill.com Holdings (NYSE:BILL) – BILL stock rose more than 15% premarket after the business automation software company beat Wall Street expectations on its results and outlook.
Yelp Inc (NYSE:YELP) – Yelp stock is flat premarket after rising more than 8% in extended trading after the review site continued to report strong advertising demand from its high-intent audience on its demands shopping.
Live Nation Entertainment Inc. (NYSE:LYV) – LYV shares jumped about 7% in extended trading but were flat in premarket after Ticketmaster’s parent said first-quarter losses eased amid “incredible” demand for live concerts. alive.
Dropbox Inc. (NASDAQ:DBX) – DBX shares gained about 4% premarket after the cloud storage company beat earnings and revenue expectations for the latest quarter.
Atlassian Corp (NASDAQ:TEAM) – TEAM shares were down about 13.2% premarket after the collaboration and productivity software company had a lower-than-expectations quarter.
Microchip Technology (NASDAQ:MCHP) – MCHP shares fell about 5.5% after the computer component maker reported a slight earnings overrun and its outlook was in line with Street’s expectations.
Monolithic Power Systems Inc (NASDAQ:MPWR) – MPWR shares were down nearly 11% premarket after the chip-based electronics maker reported a slight earnings beat and a disappointing outlook for the current quarter.
ContextLogic Inc (NASDAQ:WISH) – ContextLogic shares fell more than 13% premarket after the company reported less than $100 million in quarterly revenue for the first time in history.