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.
