U.S. stock futures fell slightly Wednesday as investors weighed a batch of corporate earnings from major technology names and geared up for the Federal Reserve’s latest interest rate decision.
Market Snapshot
At 08:20 a.m. ET, Dow e-minis were down 66 points, or 0.19%, S&P 500 e-minis were down 8.5 points, or 0.18%, and Nasdaq 100 e-minis were down 51.75 points, or 0.33%.
Pre-Market Movers
Microsoft - It reported fiscal fourth-quarter earnings and revenue that beat Wall Street expectations but the stock was down nearly 4% in premarket trading after revenue guidance for the fiscal first quarter came up shy of estimates and the company highlighted the rising costs of its investments in artificial intelligence.
Alphabet - Shares rose over 6% after the parent of search giant Google reported second-quarter earnings that were better than expected and announced that Chief Financial Officer Roth Porat would become president and chief investment officer starting in September. Porat will be responsible for the company’s Other Bets portfolio. Alphabet also touted a range of investments in artificial intelligence during its conference call.
Snap Inc - The Snapchat parent shed more than 18% after issuing weak guidance for the current quarter. Snap topped second-quarter expectations, reporting a narrower-than-expected loss of 2 cent a share on $1.07 billion in revenue. That beat expectations for a 4-cent loss and revenues of $1.05 billion, per Refinitiv.
Coca-Cola - The beverage giant saw shares climb more than 2% in premarket trading after the company reported quarterly earnings and revenue that topped estimates. Its organic revenue increased 11% in the quarter, fueled by higher prices. Coca-Cola also raised its full-year outlook following the strong report.
Boeing - The aircraft manufacturer rose more than 3% after it posted a revenue beat for the second quarter. Boeing’s losses per share also came in lower than expected. The company’s results were driven by an uptick in airplane deliveries.
AT&T Inc - AT&T rose 2% after posting its latest quarterly results. The company topped earnings but fell short on revenue expectations, reporting adjusted earnings per share of 63 cents on $29.92 billion in revenue. Free cash flows topped expectation, which the company said it would use to pay down debt.
Teladoc Health Inc. - Shares jumped 6% after Teladoc Health beat on the top and bottom lines in its most recent quarter. The telehealth company reported a narrower-than-expected loss of 40 cents per share compared to a loss of 41 cents per share, according to the consensus estimate from StreetAccount. The firm also posted revenue of $652.4 million, better than the expected $649.2 million.
DISH Network - Shares of the telecom company jumped more than 9% in premarket trading after Bloomberg News reported that Dish would start selling its wireless service on Amazon this week.
Market News
Microsoft generated fiscal fourth-quarter net income of $20.1 billion, or $2.69 a share, compared with $16.7 billion, or $2.23 a share, in the year-earlier period. Overall revenue climbed to $56.2 billion from $51.9 billion.
The U.S. Federal Trade Commission is finalizing its long-awaited antitrust lawsuit against Amazon.com in a move that could ultimately break up parts of the company, the wide-ranging lawsuit is expected as soon as August and will likely challenge a host of Amazon's business practices.
Alphabet reported net profit of $1.44 per share for the April-June period, compared with estimates of $1.34 per share. Revenue for the quarter stood at $74.6 billion, compared with estimates of $72.82 billion.
Visa reported that revenue for its fiscal third quarter rose to $8.12 billion from $7.28 billion, and fiscal third-quarter net income of $4.2 billion, or $2.00 a share, compared with $3.4 billion, or $1.60 a share, in the year-earlier period.
Texas Instruments forecast earning between $1.68 and $1.92 per share in Q3. The midpoint of that is $1.80, and anticipates Q3 revenue to be in the range of $4.36B to $4.74B, the midpoint of which is $4.55B.
For the June quarter, Snap Inc posted revenue of $1.068 billion, down 4% from a year ago and lost 2 cents a share. It now has 397 million daily active users, up 14%. For the third quarter, it projects revenue of $1.07 billion to $1.13 billion, or flat to down 5% from a year ago.
Salesforce.com announced a series of embedded apps and integrations aimed at spreading Commerce Cloud across marketing, sales and service channels. The aim is to allow customers to create purchase experiences anywhere.
PacWest had agreed to be acquired by Banc of California in an all-stock merger backed by two private-equity firms. The deal values PacWest at $9.60 a share, a premium over its closing price of $7.67 a share on Tuesday.