U.S. stock futures fell on Wednesday as a surge in Treasury yields to multi-year highs amid rising interest rates dented gains powered by streaming giant Netflix after it reversed customer losses.
Market Snapshot
At 7:53 a.m. ET, Dow e-minis were down 104 points, or 0.34%, S&P 500 e-minis were down 16.5 points, or 0.44%, and Nasdaq 100 e-minis were down 48.5 points, or 0.43%.
Pre-Market Movers
Procter & Gamble(PG) – The consumer products giant’s quarterly earnings of $1.57 per share beat estimates by 3 cents with revenue also topping Wall Street forecasts. Results were helped by a 7% boost in organic sales, although P&G cut its full-year revenue forecast due to the impact from a stronger US dollar. P&G rose 1.7% in the premarket.
Travelers(TRV) – Travelers added 1% in premarket trading after beating top and bottom line estimates for its latest quarter. The insurance company’s catastrophe losses rose from a year ago, but its results were helped by record insurance premiums.
Generac(GNRC) – The power equipment maker released preliminary third-quarter results that fell below Wall Street forecasts. Generac said residential sales were pressured during the quarter, and its largest clean-energy customer ceased operations and filed for bankruptcy. Generac tumbled 16.8% in the premarket.
Nasdaq(NDAQ) – Nasdaq gained 1.5% in premarket action after reporting better-than-expected profit and revenue for the third quarter. Nasdaq saw strong demand for its various investment products as investors revamped portfolios in response to market volatility.
Netflix(NFLX) – Netflix surged 12.2% in premarket trading after reporting it added 2.4 million subscribers during its latest quarter. That was more than twice the video streaming service’s prediction and reversed a trend that saw it lose subscribers for the past two quarters.
Adobe(ADBE) – The software maker’s stock rose 1.7% in the premarket after it reaffirmed its prior current-quarter outlook, encouraging investors who have seen other tech companies cut their forecasts as sales decline.
JB Hunt Transport(JBHT) – JB Hunt reported better-than-expected profit and revenue for its latest quarter, but the logistics company said it is preparing for a subdued holiday season as shipping volumes decline. JB Hunt added 2.5% in premarket action.
United Airlines(UAL) – United Airlines jumped 5.3% in premarket trading after reporting better-than-expected quarterly results and issuing an upbeat earnings forecast for the current quarter amid a continued surge in travel demand.
Intuitive Surgical(ISRG) – Intuitive Surgical rallied 10% in off-hours trading after its quarterly earnings and revenue topped Wall Street forecasts. The medical equipment maker’s results were helped by a roughly 20% jump in the number of procedures performed with its da Vinci robotic surgical devices.
Interactive Brokers(IBKR) – Interactive Brokers rose 2.6% in the premarket after the company’ reported a 73% jump in net interest income and a 3% rise in commission revenue fro the quarter.
ASML(ASML) – ASML reported better-than-expected quarterly sales and profit, as the semiconductor manufacturing equipment maker managed to thrive despite an overall industry slowdown. ASML jumped 5.2% in premarket action.
Market News
Procter & Gamble’s Earnings Beat As Higher Pricing Offsets Drop in Volume
Procter & Gamble topped Wall Street’s estimates for quarterly earnings and revenue as higher prices helped mitigate rising costs.
For the three-month period ended Sept. 30, P&G reported a net income of $3.94 billion, or $1.57 per share, down from $4.11 billion, or $1.61 per share, a year earlier. The company’s gross margin fell 1.6% compared with the year-ago period, weighed down by higher freight and commodity costs.
Abbott Laboratories Q3 Adj. EPS $1.15 Beats $0.94 Estimate, Sales $10.40B Beat $9.64B Estimate
Abbott Laboratories reported quarterly earnings of $1.15 per share which beat the analyst consensus estimate of $0.94 by 22.34 percent.
This is a 17.86 percent decrease over earnings of $1.40 per share from the same period last year.
Chip Maker TSMC Weighs Expansion in Japan to Reduce Geopolitical Risk
Taiwan Semiconductor Manufacturing Co. is considering expanding its production capacity in Japan, people familiar with the matter said, in what would be a move by the world’s largest contract chip maker to reduce geopolitical risk.
The Japanese government has signaled that it would like TSMC to expand in the country beyond a factory already under construction, but no decision has been made yet and TSMC is studying the feasibility, these people said.
ASML Reports Q3 Net Sales of €5.8 Billion, Better Than Expected
ASML Holding NV on Wednesday reported better-than-expected third-quarter sales and profit and record new bookings.
ASML's third-quarter net profit was 1.7 billion euros ($1.7 billion), on sales of 5.8 billion euros, beating analyst forecasts of profit of 1.42 billion euros, on sales of 5.41 billion euros.
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