U.S. stock futures fell Thursday as traders assess the possibility of even tighter U.S. monetary policy on the back of a hot inflation report. Traders also pored over key quarterly results.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 428 points, or 1.39%, S&P 500 e-minis were down 52.5 points, or 1.38%, and Nasdaq 100 e-minis were down 118 points, or 1%.
Pre-Market Movers
JPMorgan Chase – JPMorgan Chase was down 2.9% in premarket trading after falling 12 cents shy of estimates with a quarterly profit of $2.76 per share. It also announced it was temporarily suspending share buybacks. CEO Jamie Dimon said inflation, waning consumer confidence and other factors were likely to have a negative effect on the global economy.
Morgan Stanley – Morgan Stanley reported quarterly earnings of $1.39 per share, 14 cents shy of consensus estimates, with the investment bank’s revenue also falling short. The bank saw weaker investment banking activity during the quarter, although it said results in equity and fixed income were strong. Morgan Stanley lost 2.6% in the premarket.
Taiwan Semiconductor Manufacturing – The chip maker’s stock rose 1.5% in the premarket after second-quarter earnings beat analyst estimates. Taiwan Semi also raised its revenue forecast for the year. Results got a boost from strong markets for automotive and IoT chips.
LM Ericsson Telephone – The Sweden-based telecom equipment company reported a profit that missed analyst estimates, hurt by higher costs for components and logistics. Ericsson shares tumbled 9.1% in premarket trading.
Twitter – Twitter added 1.1% in premarket action, on top of a 12.6% jump over the past 2 sessions. Wednesday’s nearly 8% gain came after Twitter sued Elon Musk to force him to go through with a $44 billion takeover deal. Twitter also said in an SEC filing that it is not planning company-wide layoffs but may continue to restructure the company.
ConAgra – The food producer reported an adjusted quarterly profit of 65 cents per share, 2 cents above estimates, with revenue essentially in line with forecasts. Conagra saw an impact from higher costs, with operating margins falling by 310 basis points.
Cisco – J.P. Morgan Securities downgraded the networking equipment maker’s stock to “neutral” from “overweight,” based in part on what it sees as downside risks to enterprise spending levels. Cisco fell 2.2% in the premarket.
Dollar General – The discount retailer’s stock fell 2.3% in the premarket after Citi downgraded it to “neutral” from “buy,” noting that the shares are within 4% of its price target. Citi also feels the recently announced CEO transition will be smooth and does not impact its view of the stock.
Market News
Taiwan Semiconductor Manufacturing forecast revenue growth that could be the highest in 10 quarters, saying it was "highly confident" about its long-term prospects and touted demand for high-tech chips used in data centres and electric vehicles.
America’s first leveraged single-stock ETFs will debut Thursday, launching into a miserable year for US equities and accompanied by a barrage of regulator warnings over their potential risks.
Amazon.com has offered to refrain from using sellers' data for its own competing retail business and boost the visibility of rival products on its platform, EU regulators said on Thursday, a move aimed at staving off a possible hefty fine.
Alphabet's Google Cloud unit on Wednesday said it will start adopting computing chips based on technology from Arm Ltd, making it the latest company to join a transition that will take market share from Intel and Advanced Micro Devices.
LM Ericsson Telephone’s sales increased 14% to 62.5 billion Swedish kronor, equivalent to about $5.9 billion, in the quarter ended June 30 compared with the same period last year. Profit rose 19% to 4.7 billion kronor in the quarter.
JPMorgan Chase reported a fall in second-quarter profit on Thursday as America's largest bank set aside more money to cover potential losses in the face of growing risks of a recession.
Morgan Stanley reported net revenues of $13.1 billion for the second quarter ended June 30, 2022 compared with $14.8 billion a year ago. Net income applicable was $2.5 billion, or $1.39 per diluted share, compared with net income of $3.5 billion, or $1.85 per diluted share, for the same period a year ago.
BYD Co., Ltd. expects a net profit of RMB2.8B - RMB3.6B ($533M) in 1H22, up 138.59% - 206.76% Y/Y and after deducting non-recurring gains and losses, net profit to be RMB2.5B - RMB3.3B, up 578.11 % - 795.11% Y/Y.
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