The Dow and the S&P 500 futures inched to record highs on Friday after Walt Disney’s forecast-beating results, while signs of cooling inflation and a strong recovery in corporate earnings kept the indexes on track for a second straight week of gains.
At 8:10 a.m. ET, Dow E-minis were up 59 points, or 0.17%, S&P 500 E-minis were up 1.5 points, or 0.03% and Nasdaq 100 E-minis were down 17 points, or 0.11%.
A stellar earnings season, improving economic data and the Senate’s passage of a large infrastructure bill have all reinforced investors’ belief in the economic recovery, pushing U.S. stocks to all-time highs in the past few sessions.
Concerns over higher inflation and a sooner-than-anticipated policy tapering by the Federal Reserve also ebbed after data earlier this week showed the pace of increase in U.S. consumer prices slowed in July even as producer prices posted their biggest annual increase in more than a decade.
Investors now await the minutes of the Fed’s latest policy meeting, due next week, and the annual meeting of central bankers in Jackson Hole, Wyoming, later in August for policy cues.
Stocks making the biggest moves in the premarket:
Walt Disney – Walt Disney reported adjusted quarterly earnings of 80 cents per share, well above the 55-cent consensus estimate, with revenue beating forecasts as well. Disney’s performance was boosted by a rebound in U.S. theme park attendance as well as stronger-than-expected growth for its Disney+ streaming service. The company did, however, warn of uncertainty surrounding the impact of the delta coronavirus variant. Disney shares rallied 5.5% in the premarket.
Airbnb, Inc. – Airbnb lost 11 cents per share for its latest quarter, smaller than the 47-cent loss that analysts were anticipating. Revenue exceeded estimates, nearly quadrupling from a year earlier as domestic travel rebounded from its pandemic lows. However, the company pointed to uncertainty surrounding the pandemic and the delta variant, and Airbnb shares slid 2.8% in premarket trading.
23andMe, Inc. – The genetic research company reported revenue of $59 million in its first quarter as a public company, up 23% from a year ago, while reporting a smaller loss. 23andMe shares climbed 2.1% in premarket action.
DoorDash, Inc. – DoorDash posted a quarterly loss of 30 cents per share, wider than the 20 cents that Wall Street had projected. However, the food delivery service’s revenue did beat estimates, with gross order volume up 70% from a year ago. DoorDash also raised its full-year guidance for gross order volume. DoorDash shares fell 4.2% in the premarket.
SoFi Technologies Inc. – SoFi lost 48 cents per share for its second quarter, compared with analyst forecasts of a 6 cents per share loss. The digital financial services company’s revenue exceeded estimates, as membership more than doubled from a year earlier, but the stock tanked 9.6% in premarket action.
Pfizer ,BioNTech SE ,Moderna, Inc. – The FDA authorized Covid-19 vaccine booster shots for immunocompromised people utilizing the Pfizer/BioNTech and Moderna vaccines. Pfizer added 0.2%, BioNTech climbed 2.4% and Moderna gained 2.3%.
Embraer SA – The Brazilian jet maker posted its first recurring quarterly profit since the first quarter of 2018, as travel demand rebounded from the lowest levels of the pandemic. Shares jumped 3.6% in the premarket.
Kansas City Southern – Kansas City Southern rejected an improved takeover offer fromCanadian Pacific Railway(CP), saying it did not constitute a “superior proposal” to its agreement withCanadian National Railway(CNI). The Canadian Pacific offer is worth $27 billion compared to $29 billion for Canadian National, but Canadian Pacific feels its bid has a better chance of regulatory approval.
ZipRecruiter Inc. – ZipRecruiter posted a quarterly loss of 55 cents per share, compared with a consensus estimate of a 22 cents per share loss. However, the online employment marketplace operator saw revenue well above Street forecasts and made upbeat comments about the remainder of 2021. ZipRecruiter surged 14.3% in the premarket.
Rocket Companies – Rocket shares gained 5.4% in premarket action despite a miss on the top and bottom lines for the online mortgage platform operator. Rocket did see a surge in closed loan origination volume over a year ago and gave upbeat current-quarter guidance for a variety of metrics.
ContextLogic Inc. – The e-commerce platform company’s stock tumbled 27.8% in the premarket, following top and bottom line misses for its latest quarter. The operator of wish.com said it saw slowing demand for its products, fewer users and active buyers, and higher costs.
Activision Blizzard – The videogame maker’s stock added 1.1% in premarket trading after Citi upgraded it to “buy” from “neutral”, saying the current risk/reward profile looks favorable following the stock’s recent pullback.
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