Stock futures were falling slightly Tuesday as Wall Street digested earnings from a number of megacap companies and looked ahead to a decision on interest rates from the Federal Reserve.
Market Snapshot
At 8:20 a.m. ET, S&P 500 futures edged down by 0.05% while Nasdaq 100 futures lost 0.1%. Dow Jones Industrial Average futures were little changed.
Pre-Market Movers
Eli Lilly reported first-quarter adjusted earnings of $2.58 a share, topping analysts’ estimates, and raised revenue guidance for the full year. Lilly raised its guidance for 2024 revenue by $2 billion to a range of $42.4 billion to $43.6 billion, which the company said was primarily driven by the strong performance of obesity drugs Mounjaro and Zepbound. The stock was rising 7% in premarket trading.
3M’s first-quarter earnings topped Wall Street estimates, and the company said it would “reset” its dividend following the spinoff of healthcare business Solventum. 3M said it will target about 40% of its free cash flow as annual dividends. The stock jumped 6%.
PayPal Holdings was rising 5% after the payments company posted first-quarter adjusted earnings of $1.08 a share under a new reporting structure. Under its old reporting structure, adjusted earnings were $1.40 a share. PayPal’s guidance was $1.17 and Wall Street called for profit of $1.22 a share.
Coca-Cola, the beverages giant, raised its full-year revenue forecast on higher prices after beating first-quarter profit and revenue expectations. The stock fell 0.1%.
McDonald’s declined 0.7% in premarket trading after the fast-food chain reported first-quarter adjusted earnings of $2.72 a share, missing analysts’ estimates by 2 cents. Worldwide comparable sales rose 1.9%, below a gain of 2.1% that Wall Street expected.
MicroStrategy, a software company with vast holdings of Bitcoin, reported a first-quarter loss of $53.1 million, or $3.09 a share, compared with year-earlier net income $461.2 million, or $31.79 a share. The latest quarter included impairment losses of $191.6 million against the value of its Bitcoin holdings. Shares of MicroStrategy were down 6.7%.
Tesla was down 2.3% in premarket trading to $190.30 after closing Monday at $194.05, up 15%. It was the electric-vehicle maker’s largest percent increase since March 9, 2021, when it rose nearly 20%. Spurring the gains Monday was a report from The Wall Street Journal that said Tesla received official approval from Beijing to introduce its most advanced driver-assistance features in the company’s cars.
Chegg was falling 14% in premarket trading after the provider of online homework-help services said President and CEO Dan Rosensweig will be stepping down and issued weaker-than-expected second-quarter guidance.
Coursera, another education-tech company, was down 15% after issuing disappointing guidance for both the second quarter and the rest of 2024.
Sensata Technologies was rising 19% after the industrial technology company posted first-quarter adjusted profit of 89 cents a share, beating analysts’ forecasts of 85 cents, and said it had reached a cooperation and information sharing agreement with activist investor Elliott Investment.
Logitech International jumped 2.8% after the maker of computer peripherals such as headphones, mice, and webcams reported better-than-expected fourth-quarter earnings and revenue and issued revenue guidance for the current fiscal year that exceeded analysts’ forecasts.
Market News
PayPal Forecasts Decline in 2024 Profit Amid “Transition Year”
PayPal Holdings Inc. said it expects earnings to fall this year as the financial-technology company continues to work on cutting costs and streamlining its businesses.
PayPal reported a 14% increase in total payment volume to $403.9 billion in the first quarter, it said in a statement Tuesday, topping analysts’ estimates of $392.9 million. For all of 2024, the firm is expecting earnings per diluted share to be about $3.65, compared with $3.84 the prior year, when it included gains from the sale of Happy Returns — a firm that helps consumers return unwanted items — and from the company’s investment portfolio. The forecast was lower than analysts are expecting.
Eli Lilly Stock Jumps as Demand for Weight-Loss Drugs Soars
Eli Lilly stock rose after the drug maker reported a 26% increase in quarterly revenue, aided by robust demand for its weight-loss drug Mounjaro.
Revenue gains were driven by sales of Mounjaro, Zepbound, Verzenio and Jardiance. The company is expanding manufacturing capacity to meet demand, and expects production to rise significantly in the second half of the year.
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