U.S. stock futures advanced Thursday morning as investors continued to monitor a steady stream of corporate earnings results against a backdrop of elevated inflation and further Fed policy tightening.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 248 points, or 0.71%, S&P 500 e-minis were up 39.5 point, or 0.89%, and Nasdaq 100 e-minis were up 169 points, or 1.21%.
American Airlines – American soared 10.5% in premarket trading after reporting a smaller-than-expected loss and predicting profitability for the current quarter.
United Continental – United lost an adjusted $4.24 per share for the first quarter, 2 cents more than expected, and the airline’s revenue was also slightly below forecasts. However, United said it expects a return to profitability this quarter as travel demand surges, and the stock rallied 8.3% in the premarket.
Blackstone Group LP– The private equity firm’s shares jumped 4% in the premarket after reporting better-than-expected profit and revenue for the first quarter, helped by strong results from its real estate and credit operations.
AT&T Inc – AT&T earned an adjusted 63 cents per share for the first quarter, 4 cents above estimates, and beat on the top line as well. Those numbers exclude the results of the now spun-off WarnerMedia unit, with AT&T benefiting from an increase in wireless revenue. AT&T added 1.4% in premarket action.
Tesla Motors – Tesla surged 7.4% in premarket trading after reporting record quarterly profit and beating Wall Street’s top and bottom-line estimates. Tesla cautioned that production would be constrained for the remainder of the year due to shortages of computer chips and other parts, but it expects to increase deliveries.
Xerox – Xerox tumbled 7.3% in the premarket after reporting an adjusted quarterly profit of 12 cents per share, 1 cent below consensus. The office equipment maker was hurt by inflation pressures and supply chain issues.
Dow Chemical – The chemical maker’s stock added 2.1% in the premarket after beating estimates on both the top and bottom lines, helped by strong demand and higher prices.
Sleep Number Corporation – Sleep Number shares tanked 10.6% in premarket trading following a top and bottom-line miss for its latest quarter. The mattress company earned 9 cents per share, well short of the 33-cent consensus estimate, with supply chain issues impacting its results.
Carvana Co. – Carvana lost $2.89 per share for its latest quarter, wider than the $1.44-per-share loss analysts were anticipating. Revenue beat estimates, but the online auto seller saw its first-ever quarterly sales decline. Carvana fell 5.1% in the premarket.
Lam Research – Lam Research fell 11 cents short of estimates with adjusted quarterly earnings of $7.40 per share, and the chipmaker’s revenue also fell short of Wall Street forecasts. Lam’s expenses increased as it spent more to deal with supply chain disruptions. Lam lost 1.3% in the premarket.
CSX Corp – CSX beat estimates by 2 cents with quarterly earnings of 39 cents per share, and the railroad operator’s revenue also topped forecasts. CSX handled fewer shipments, but that was more than offset by an increase in shipping rates. CSX rose 2.1% in premarket trading.
Market News
Elon Musk’s tunneling startup Boring Co. has raised $675 million in a funding round led by Vy Capital and Sequoia Capital. The round values the startup at $5.675 billion, the company said in a press release on Wednesday.
Amazon.com said it will let merchants sell products they list with the e-commerce giant directly from their own websites, as part of a move to blunt the momentum of fast-growing competitor Shopify.
Boeing has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said.
Goldman Sachs reported Morgan Stanley to Hong Kong's financial regulator over a series of block trades, or large sales of shares, citing people familiar with the matter.
Workers at an Apple store in Atlanta on Wednesday filed a petition to hold a union election, seeking to become the company's first U.S. store to unionize amid a wave of labor activity at other major firms.
Shopify is in talks to buy technology startup Deliverr, according to people familiar with the matter, a move that would help the Canadian e-commerce company expand in fulfillment services.
Barack and Michelle Obama’s time with Spotify Technology S.A. is coming to an end. The former first family’s production company, Higher Ground, won’t be signing a new deal with the audio platform, according to people familiar with the negotiations.