U.S. stock index futures jumped on Wednesday on strong earnings updates from Microsoft and Visa, following a brutal selloff in the previous session that sent the tech-heavy Nasdaq to its lowest close since December 2020.
Market Snapshot
At 08:38 a.m. ET, Dow e-minis were up 200 points, or 0.6%, S&P 500 e-minis were up 12.75 points, or 0.31%, and Nasdaq 100 e-minis were up 17.5 points, or 0.13%.
Pre-Market Movers
Microsoft — Shares of Microsoft rose 4% premarket following a beat on the top and bottom lines in the previous quarter and shared strong guidance for the current quarter. Revenue guidance for all three of the company’s business segments in the current quarter topped analysts’ expectations.
Alphabet — Shares of Google’s parent company dipped 3.5% during premarket trading after reporting a miss on the top and bottom lines in the first quarte and weak revenue from YouTube. Alphabet reported earnings per share of $24.62 per share on revenues of $68.01 billion. Analysts anticipated earnings of $25.91 on revenues of $68.11 billion, according to Refinitiv.
Visa — Visa’s stock surged 5.5% premarket following a beat on the top and bottom lines in the previous quarter, as it anticipates travel recovery will bring continued growth. The payments firm reported adjusted earnings per share of $1.79 on revenues of $7.19 billion. Analysts expected $1.65 adjusted earnings per share and $6.83 billion in revenue, according to Refinitiv.
Enphase Energy — Shares of the solar microinverter maker jumped more than 8% during premarket trading following the company's first-quarter results. Enphase reported record revenue, and exceeded analyst expectations on the both the top and bottom line. The company said Europe will be a key growth area looking forward as Russia's invasion of Ukraine sends power prices soaring.
Boeing — The aircraft maker’s shares slipped by 1.3% after the company recorded weaker-than-expected earnings and revenue for the most recent quarter. Boeing also said it’s pausing production of its 777X plane and doesn’t expect deliveries to start until 2025.
Texas Instruments — Shares of Texas Instruments fell 2.9% after the tech company issued weak earnings and revenue guidance for the current quarter and said it expects reduced demand from China.
Juniper Networks — The maker of networking technology saw its shares decline 6.1% after reporting first quarter earnings that came in slightly lower than analysts' estimates. Management said on the company earnings call that ongoing supply chain challenges have resulted in extended lead times and elevated logistics and component costs.
Edwards Lifesciences — The artificial heart valve maker’s shares fell 3.6% despite reporting a revenue beat for the first quarter, as the company issued weak revenue guidance for the current quarter.
Harley-Davidson — Shares of the motorcycle maker shed 1.4% after the company reported earnings for the previous quarter that were in line with analysts’ estimates, at $1.45 per share, according to Refinitiv. It’s quarterly revenue also slightly missed estimates, at $1.30 billion versus $1.31 billion.
Capital One — Capital One shares lost 5.4% in early trading despite the company beating earnings and revenue estimates for its most recent quarter. The company’s results included a pre-tax impact of $192 million from gains on partnership card portfolios and lower-than-expected net interest margins.
Market News
Microsoft Corp. reported quarterly sales and earnings that topped analysts’ projections, fueled by robust growth in cloud-services demand.
Revenue in the third quarter, which ended March 31, rose 18% to $49.4 billion, the Redmond, Washington-based software maker said Tuesday in a statement. Net income rose to $16.7 billion, or $2.22 a share. That compared with average analyst projections for $49 billion in sales and $2.19 a share in earnings, according to a Bloomberg survey.
Google parent Alphabet Inc. reported first-quarter revenue that fell short of analysts’ expectations, a rare miss for the technology giant reflecting slower ad sales in Europe and a lackluster performance by its YouTube video service. The company also announced a $70 billion share buyback program.
Electric carmaker Lucid Group Inc on Tuesday said it has signed an agreement with the government of Saudi Arabia for the purchase of up to 100,000 of its vehicles over the next 10 years.
Saudi Arabia commits to purchase 50,000 vehicles under the agreement, with an option to buy an additional 50,000 vehicles during the ten-year time frame, Lucid said in a statement.
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