- U.S. Futures Rise After Stocks Bruised by Tax Plan
- U.S. dollar and Treasuries weaken; oil pares weekly loss
U.S. stock index futures edged higher on Friday as investors awaited business activity data to gauge the pace of economic recovery, a day after reports that President Joe Biden planned to almost double the capital gains tax spooked markets.
At 08:05 a.m. ET, Dow e-minis were up 8 points, or 0.02%, S&P 500 e-minis were up 6.5 points, or 0.16%, and Nasdaq 100 e-minis were up 19.5 points, or 0.14%.
Cryptocurrency and blockchain-related stocks including Riot Blockchain and Marathon Digital tumbled after bitcoin suffered hefty losses on fears plans to raise capital gains taxes would curb investment in digital assets.
IHS Markit's flash reading at 9:45 a.m ET is likely to show business activity in the manufacturing and services sectors improved in April from the prior month.
Stocks making the biggest moves in the premarket:
Intel (INTC) – Intel fell 2.5% in premarket trading despite beating estimates on both the top and bottom lines for the first quarter. Investors are focusing on a lighter than expected full-year sales forecast, even though the chipmaker raised that outlook from its prior guidance.
Snap (SNAP) – The parent of Snapchat reported a breakeven quarter, compared to consensus forecasts for a 6 cents per share loss. Revenue also beat estimates, as did user growth for Snapchat, and the stock rallied 4.6% in the premarket.
American Express (AXP) – American Express reported first-quarter profit of $2.74 per share, beating the consensus estimate of $1.61 a share. The financial services company’s revenue came in slightly short of forecasts. The bottom line was helped by $1.05 billion in credit reserve releases as the macroeconomic environment improved. American Express shares fell 3.5% in premarket trading.
Honeywell (HON) – The industrial conglomerate beat estimates by 12 cents a share, with quarterly earnings of $1.92 per share. Revenue beat estimates as well. Sales for Honeywell’s aerospace segment declined, but it saw strength in its safety and productivity business. Honeywell shares slid 1.2% in the premarket.
Schlumberger (SLB) – The oilfield services company’s shares rose 1.4% in the premarket after it reported better-than-expected profit and revenue on improved international drilling activity. That follows upbeat reports earlier this week from rivals Halliburton (HAL) and Baker Hughes (BKR).
Kimberly-Clark (KMB) – The consumer products company’s stock dropped 3.3% in premarket action after it reported weaker-than-expected profit and sales for its latest quarter and gave a full-year forecast that came in below Wall Street consensus. Kimberly-Clark said it faced a number of challenges during the quarter, including supply chain issues and difficult comparisons to a year ago when consumers stocked up on items as the pandemic began.
Boston Beer (SAM) – The Sam Adams brewer surged 7.6% in premarket action after beating top and bottom line estimates by a wide margin for its latest quarter. Boston Beer’s results were helped by a jump in sales for its Truly hard seltzer brand.
Mattel (MAT) – The toy maker’s shares rallied 6.8% in premarket action after it reported record 47% sales growth for its latest quarter compared to a year ago. Mattel reported a much smaller-than-expected loss, but revenue beat forecasts on strong sales of toys like Barbie dolls and Hot Wheels cars.
Seagate Technology (STX) – The hard disk drive maker’s shares slipped 2% in the premarket despite better-than-expected profit and revenue for its latest quarter. Seagate forecast slightly better-than-expected profit for the full year, with its revenue projection roughly in line with Wall Street forecasts.
Skillz (SKLZ) – The esports platform surged 10.1% in premarket trading following news that Cathie Wood’s ARK funds bought another 1.2 million shares following a 5 million share purchase on Wednesday.
Skechers (SKX) – The footwear maker beat estimates on the top and bottom lines for its latest quarter, boosted by strong overseas demand for its shoes. Skechers shares soared 10.4% in premarket action.
World Wrestling Entertainment (WWE) – The media and entertainment company’s shares rose 2.9% in premarket action after it reported better-than-expected profit and revenue for the first quarter. Profit fell from a year ago, however, reflecting a decline in live events due to the pandemic.
Skyworks Solutions (SWKS) – The chipmaker is buying the infrastructure and automotive business of Silicon Labs (SLAB) for $2.75 billion in cash. The deal will help Skyworks expand into new markets like electric vehicles and 5G technology. Skyworks rose 4.1% in the premarket, while Silicon Labs rallied 12.3% after saying it would return $2 billion of the deal’s proceeds to shareholders.
Harley-Davidson (HOG) – The motorcycle maker’s stock fell 2.6% in the premarket after Morgan Stanley downgraded it to “underweight” from “equal-weight.” The stock rallied after strong first-quarter earnings, but Morgan Stanley said recent positive dynamics are now priced in and that investors are underappreciating the challenges that lie ahead.