Futures quotes on U.S. stock indices are rising on positive corporate news.
U.S. economic data released Thursday showed a less-than-expected slowdown in U.S. GDP growth in the fourth quarter of last year.
GDP rose 2.9 percent on an annualized basis, up from 3.2 percent in the third quarter, preliminary data from the nation’s Commerce Department showed. The consensus analyst forecast cited by Trading Economics suggested economic growth weakened to 2.6 percent.
Experts believe that signals of deterioration in the U.S. economy may prompt the Federal Reserve (Fed) to further slow the pace of base interest rate increases. The first Federal Open Market Committee (FOMC) meeting of the year will be held next week.
The U.S. Central Bank raised the rate by 50 basis points (bps) in December after increasing it by 75 bps at the end of the previous four meetings.
Tesla’s stock price jumped 8.4% in premarket trading on Thursday. The U.S. maker of electric cars recorded record net income for the fourth quarter of 2022 and significantly increased revenue.
The company also said that a group of banks opened it a $5 billion five-year revolving line of credit. The size of the line of credit may be increased by up to $2 billion.
The securities of Chevron Corp. went up 3.5%. One of the largest U.S. oil producers approved a new share buyback program worth up to $75 billion. The new program starts on April 1 and will be one of the largest in the U.S. corporate sector.
American Airlines Group shares gained 1.3%. The airline increased revenue 1.4 times in the fourth quarter of 2022, to an October-December record, thanks to a rebound in airline demand and prices. Its adjusted earnings were the highest since the third quarter of pre-Victorian 2019.
Southwest Airlines Co.’s stock price was down 2.4 percent. The air carrier ended the fourth quarter with a loss and its revenue missed forecasts.
The value of the March E-mini futures on the S&P 500 Index was up 0.38 percent at 4,047.25 points by 3:50 p.m. Thursday. The value of the March E-mini futures on the Dow Jones index had risen 0.1 percent to 3,3856 points by that time. The Nasdaq 100 index futures for March rose 0.76% to 11963 points.
U.S. index futures and various commodities prices are down on Monday amid a general decline in investors’ risk appetite amid information about the ongoing protests in China against anti-covid restrictions.
“We knew we were going to be nervous this morning about the COVID-19 situation in China, but the protests took the market by surprise,” said SPI Asset Management managing partner Stephen Innes, quoted by MarketWatch.
December futures for the Standard & Poor’s 500 Index were down 0.6% by 9:17 a.m. Ksk, the Dow Jones was down 0.4% and the Nasdaq 100 was down 0.7%.
January Brent crude futures on London’s ICE Futures exchange fell 3.1% to $81 a barrel by 9:17 a.m. Ksk. January WTI futures fell 3% to $73.98 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX), which was the lowest level since late last year.
Oil fell 5.4% on the Shanghai exchange.
Base metals in London and Shanghai also fell on Monday. Iron ore prices on the Dalian Commodity Exchange fell 2%.
Protests were held in cities across the country, including the capital Beijing, as well as Shanghai, Xinjiang and Wuhan, which was originally the epicenter of the COVID-19 spread, Bloomberg reported.
That contributes to a stronger U.S. dollar, which reduces the attractiveness of investments in raw materials, and also raises the possibility of even more significant tightening of restrictions by Chinese authorities, the agency said. It may have a negative impact on economic activity in China, which is the world’s largest consumer of many raw materials.
China’s oil demand could fall to an average of 15.11 million bpd in the fourth quarter, down from 15.82 million bpd for the same period in 2021, Kpler oil analyst Gregory Leckner predicted.
Quotes of futures for US stock indices are rising on Tuesday, investors are waiting for the results of the November meeting of the US Federal Reserve System (FRS) and evaluate corporate reporting.
The Fed meeting will end on Wednesday evening. As expected, following its results, the key interest rate will be raised again by 75 basis points, up to 3.75-4% per annum. The main attention of market participants will be focused on statements by Fed Chairman Jerome Powell regarding the further pace of policy tightening, writes The Wall Street Journal.
Since March, the US Central Bank has already increased the rate by 3 percentage points, the highest rate since the early 1980s, to slow inflation.
The Institute for Supply Management (ISM) will release the October value of the US ISM Manufacturing Index at 5:00 p.m. Thursday. Analysts polled by Trading Economics predict that the indicator fell to 50 points from September’s 50.9 points.
The price of Pfizer Inc. (SPB: PFE) increases by 3.5%. The pharmaceutical giant posted a 5.7% increase in third-quarter net income, with better-than-expected adjusted figures and revenue.
Another pharmaceutical company, Eli Lilly and Co. (SPB: LLY), downgraded its full-year guidance, sending shares down 3.3% despite strong quarterly performance.
Shares in medical device maker Abiomed (SPB: ABMD) soared 51% in pre-trade on news that Johnson & Johnson (SPB: JNJ) (J&J) is acquiring the company for $16.6 billion.
The market value of Uber Technologies (SPB: UBER) jumped 12%. The taxi and food delivery company posted a loss in the third quarter of 2022, but its revenue increased more than expected, and its forecast for the current quarter was also better than analysts’ estimates.
Herbalife Nutrition Ltd stock quotes. decrease by 1%. The supplement maker withdrew its full-year guidance, reporting a decline in net income and revenue in the third quarter of 2022, and also announced the departure of the chief executive officer.
Paper Goodyear Tire & Rubber Co. (SPB: GT) become cheaper by 8%. The tire maker cut its net income by a factor of three in the quarter, with adjusted earnings and revenue falling short of analysts’ forecasts.
The value of the December E-mini futures on the Dow Jones index by 15:26 qoq increased by 0.7% and amounted to 33,005 points. Quotation of the December E-mini futures on the S&P 500 rose by this time by 1.06%, to 3924.25 points. Futures on the Nasdaq 100 for December jumped 1.35% to 11,602.25 points.
U.S. stock index futures are lower on Wednesday on weak quarterly reports or forecasts from a number of big tech companies.
Shares of Alphabet Inc. (SPB: GOOG) and Microsoft Corp. (SPB: MSFT) shed 6.6% in pre-trading, while Texas Instruments (SPB: TXN) shed 4.7%.
Alphabet, Google’s holding company, saw its third-quarter 2022 revenue increase 6%, the slowest pace in two years, while its net income was down 27%. In addition, Google’s advertising revenue in the past quarter turned out to be worse than experts’ forecasts.
Microsoft recorded net profit and revenue better than analysts’ expectations in the first financial quarter ended September 30th. However, the company’s revenue forecast for the second financial quarter – $52.35-53.35 billion – turned out to be weaker than the market consensus forecast of $56.16 billion.
Texas Instruments gave a weak outlook for the current quarter, although its results in July-September exceeded analysts’ expectations.
“These companies’ reports are really important indicators of the advertising industry and a harbinger of the movement of goods and services in the economy,” said Fahad Kamal, chief investment officer of Kleinwort Hambros, quoted by Dow Jones.
Other tech companies due to release quarterly earnings this week include Meta (SPB: META) Platforms Inc. (recognized as an extremist organization in the Russian Federation and banned), Apple Inc. (SPB: AAPL), Intel Corp. (SPB: INTC) and Amazon.com Inc. (SPB: AMZN) Shares of these companies lost 4.3%, 1.1%, 1.2% and 3.6%, respectively, in early trading on Wednesday.
“We’re used to the tech sector performing strong quarter-on-quarter,” says FlowBank chief investment officer Esti Dweck. “There was hope that their financials would be another signal that the sector is still resilient.”
The value of Boeing Co. (SPB: BA) shed 0.8%. One of the world’s largest manufacturers of aviation, space and military equipment increased revenue in the third quarter by 4%, but the figure turned out to be almost $2 billion worse than the average market forecast. At the same time, Boeing’s free cash flow in July-September amounted to $2.9 billion, significantly exceeding the average analysts’ forecast of $1 billion.
The focus of traders on Wednesday – the data on sales of new buildings in the US in September, which will be released by the country’s Department of Commerce at 17:00 Moscow time.
Experts polled by Trading Economics, on average, expect sales to decline by 13.9% last month, to 585,000 homes.
The value of the December E-mini futures for the S&P 500 fell by 0.97% to 3832.75 points by 15:50 square meters on Wednesday. The quotation of the December E-mini futures on the Dow Jones index fell by this time by 0.36%, to 31,762 points. Futures on the Nasdaq 100 for December fell 1.97% to 11,483 points.
Quotes of futures for US stock indices are falling during trading on Tuesday.
The S&P 500 rose in four of the last six sessions and ended Monday at its highest level in more than a month. According to analysts, this may lead to some downward correction of the market.
In addition, in the absence of significant statistics, investors evaluate the quarterly reports of companies.
3M Co. stock quotes. (SPB: MMM) are down 3.2%. The company, which produces more than 50,000 items of various goods, increased its net profit in the third quarter by 2.7 times, but reduced revenue more than analysts expected. In addition, she worsened the annual forecast.
Raytheon Technologies (SPB: RTX) in July-September reduced its net income by 1%, the adjusted figure was higher than expected, but revenue fell short of experts’ expectations. Solutions provider for the aerospace and defense industries fell 0.4%.
Warner Bros stock price Discovery (SPB: DISCA) is down 0.2%. The media company, created last year by merging AT&T’s media arm WarnerMedia with Discovery Inc., is set to restructure operations to cut costs. The cost of this until the end of 2024 is expected to be about $4.3 billion.
Tesla (SPB: TSLA) is down 0.8%, Boeing Co. (SPB: BA) – by 0.3%, Salesforce Inc. (SPB: CRM) – by 0.2%, Apple Inc. (SPB: AAPL) – by 0.25%, Chevron Corp. (SPB: CVX) – by 0.8%.
Meanwhile, General Motors (SPB:GM) is up 3.3%. The largest American automaker increased revenue in July-September by 56%, to a record.
Shares of Halliburton Co. (SPB: HAL) rise in price by 1%. The oilfield service company increased its net profit in the third quarter by 2.3 times, revenue – by 1.4 times, both figures exceeding forecasts.
Coca Cola Co. (SPB: KO) increased its net income by 14% last quarter and raised its forecast for the current year. The price of securities of the world’s largest producer of soft drinks rises by 2.5%.
General Electric Co. (SPB: GE) in July-September received an adjusted profit worse than experts’ expectations, revenue – better. The value of the company is growing by 1.9%.
The world’s largest express delivery service, United Parcel Service (SPB: UPS), posted lower-than-expected revenue in the third quarter, but adjusted earnings and its guidance for the full year were more optimistic than expected. UPS shares rose 2.7%.
Quotations of December futures for the Standard & Poor’s 500 index by 15:10 qoq decreased by 0.47% and amounted to 3791.5 points, for the Dow Jones index – by 0.6%, to 31355 points. The price of contracts for December on the Nasdaq 100 index by this time fell by 0.24% – to 11451.5 points.
Quotes of futures for US stock indices are falling on Friday against the backdrop of continued growth in US Treasury yields, as well as unfavorable corporate news.
Rising interest rates, high inflation and a slowdown in global economic growth affect the financial results of companies. Earnings for the 88 S&P 500 companies that have released quarterly earnings so far are down an average of 2.6%, according to Refinitiv data.
At the same time, in the case of 75% of the reported companies, profits were higher than market forecasts, Market Watch notes.
Shares of Snap Inc. lose in price more than 28% during the preliminary trading on Friday. The company that owns the Snapchat app recorded the lowest revenue growth rate in its history in the third quarter of 2022. The indicator increased by less than 6% in annual terms, to $1.13 billion.
“Our revenue growth continued to slow in the third quarter, driven by a number of factors, including platform policy changes, macroeconomic challenges and increased competition,” Snap said in a statement.
Snap’s management noted that revenue was up about 9% at the start of the fourth quarter and declined to give guidance for the quarter as a whole.
Papers Twitter Inc. fell by 4.2% on the information of the Bloomberg agency that the administration of US President Joe Biden is discussing the possibility of checking some of Elon Musk’s businesses for compliance with the interests of state security.
We are talking about Musk’s SpaceX company, as well as Twitter, which is being bought by a billionaire, informed sources told the agency. According to them, the White House is concerned about Musk’s recent statements about a possible withdrawal of funding for the Starlink satellite communications system for Ukraine, as well as a series of tweets suggesting his ways to resolve the Russian-Ukrainian war.
American Express slipped 4.7% despite the fact that the company, which is one of the leaders in the US plastic card market, recorded net income and revenue in the past quarter above market expectations.
Schlumberger shares rose 1.1% in pre-trade. The American oilfield services company increased its net profit in the third quarter by 1.6 times, revenue – by 28%.
The December E-mini futures for the S&P 500 fell 0.78% to 3646.5 points by 3:55 pm on Friday. The quote of the December E-mini futures on the Dow Jones index fell by this time by 0.7%, to 30,140 points. Futures on the Nasdaq 100 for December fell 1.25% to 10952.25 points.
