Futures Pointing To Sharply Lower Open On Wall Street
25 Abril 2024 - 10:09AM
IH Market News
The major U.S. index futures are currently pointing to a sharply
lower open on Thursday, with stocks likely to come under pressure
following the lackluster performance seen in the previous
session.
A negative reaction to earnings news from Meta Platforms
(NASDAQ:META) is likely to weigh on Wall Street, as the Facebook
parent is plunging by 15.5 percent in pre-market trading.
Meta Platforms reported first quarter results that beat
estimates on both the top and bottom lines but provided
disappointing second quarter revenue guidance.
Tech giant IBM Corp. (NYSE:IBM) is also likely to come under
pressure after reporting weaker than expected first quarter
revenues. IBM also announced a deal to acquire HashiCorp (HCP) for
$35 per share in cash, representing an enterprise value of $6.4
billion.
On the other hand, fellow Dow components Merck (NYSE:MRK) and
Honeywell (NASDAQ:HON) are seeing pre-market strength after
reporting first quarter results that exceeded analyst
estimates.
The futures saw further downside following the release of a
Commerce Department report showing the U.S. economy grew by much
less than expected in the first quarter of 2024.
The Commerce Department said gross domestic product increased by
1.6 percent in the first quarter after surging by 3.4 percent in
the fourth quarter of 2023. Economists had expected GDP to jump by
2.5 percent.
The notable slowdown in GDP growth primarily reflected
decelerations in consumer spending, exports, and state and local
government spending and a downturn in federal government
spending.
Stocks turned in a lackluster performance during trading on
Wednesday following the strong upward move seen to start the week.
After moving to the upside early in the session, the major averages
spent the day bouncing back and forth across the unchanged
line.
The major averages eventually ended the day narrowly mixed.
While the Dow edged down 42.77 points or 0.1 percent to 38,460.92,
the S&P 500 crept up 1.08 points or less than a tenth of a
percent to 5,071.63 and the Nasdaq inched up 16.11 points or 0.1
percent to 15,712.75.
A positive reaction to the latest corporate earnings news
initially contributed to an extended rebound on Wall Street
following the considerable weakness seen last week.
Shares of Tesla (NASDAQ:TSLA) spiked by 12.1 percent even though
the electric vehicle maker reported weaker than expected first
quarter results.
The surge by Tesla came after CEO Elon Musk said the company
plans to start production of a new affordable model by early
2025.
Semiconductor company Texas Instruments (NASDAQ:TXN) also saw
significant strength after reporting first quarter results that
beat expectations on both the top and bottom lines.
Shares of Visa (NYSE:V) and Mattel (NASDAQ:MAT) also moved to
the upside after the companies reported better than expected
quarterly results.
Buying interest waned shortly after the start of trading,
however, with traders still worried about the outlook for interest
rates ahead of next week’s Federal Reserve meeting.
While the Fed is widely expected to leave interest rates
unchanged, traders will be looking for clues about the possibility
of future rate cuts.
Later this week, the Commerce Department is due to release a
report on personal income and spending that includes readings on
inflation said to be preferred by the Fed.
Traders may also have been reluctant to make significant moves
ahead of more big-name tech earnings in the coming days.
On the U.S. economic front, the Commerce Department released a
report showing new orders for U.S. manufactured durable goods
surged by more than expected in the month of March.
The report said durable goods orders soared by 2.6 percent in
March after climbing by a downwardly revised 0.7 percent in
February.
Economists had expected durable goods orders to spike by 2.3
percent compared to the 1.3 percent jump that had been reported for
the previous month.
Excluding a surge in orders for transportation equipment,
durable goods orders crept up by 0.2 percent in March after inching
up by 0.1 percent in February. Ex-transportation orders were
expected to rise by 0.3 percent.
Transportation stocks showed a substantial move to the downside
on the day, dragging the Dow Jones Transportation Average down by
2.3 percent.
Considerable weakness was also visible among housing stocks, as
reflected by the 1.2 percent loss posted by the Philadelphia
Housing Sector Index.
Pharmaceutical and retail stocks also saw some weakness, while
semiconductor stocks turned in a strong performance following the
upbeat results from Texas Instruments.
Reflecting the strength in the semiconductor sector, the
Philadelphia Semiconductor Index climbed by 1.1 percent on the
day.
Honeywell (NASDAQ:HON)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Honeywell (NASDAQ:HON)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024