April consumer prices increased 4.9% from a year ago. Economists polled by Dow Jones expected a 5% annual increase. Stock futures jumped after the latest inflation reading for April was tamer than feared.
Market Snapshot
At 8:37 a.m. ET, Dow e-minis were up 54 points, or 0.16%, S&P 500 e-minis were up 12.5 points, or 0.3%, and Nasdaq 100 e-minis were up 51.25 points, or 0.39%.
Pre-Market Movers
Roblox — Shares tumbled 12% after posting financial results. Roblox reported quarterly sales of $655.34 million which missed the analyst consensus estimate of $765.94 million by 14.44 percent. This is a 3.82 percent increase over sales of $631.21 million the same period last year.
Rivian Automotive — The electric vehicle maker saw its stock jump more than 6% after the company reported a first-quarter loss that was narrower than expected. Rivian also said it’s still on track to meet a 50,000-vehicle production target for 2023.
Airbnb — Shares dropped 13.3% after the vacation booking platform gave a weak outlook for the second quarter and said the company could have a tough time meeting year-over-year comparables. Airbnb still beat expectations on both lines for quarterly earnings.
Twilio — Shares of the software company slid 16% in premarket trading after Twilio’s revenue forecast came in weaker than expected. The company said it was expecting between $980 million and $990 million in revenue for the second quarter. Analysts surveyed by Refinitiv were expecting $1.05 billion in revenue.
Dutch Bros — Shares tumbled 7.6% after the company reported same-store sales and revenue for the first quarter that came in under expectations. The company did break even for the quarter, while analysts polled by StreetAccount expected a loss of 3 cents per share. JPMorgan downgraded the stock to neutral from overweight as a result of the report.
Celsius Holdings — The drinks company jumped 11.1% following a strong earnings report. Celsius posted 40 cents in earnings per share for the first quarter, more than doubling the 19-cent consensus estimate of analysts polled by StreetAccount. Revenue also came in well ahead of analyst expectations. Bank of America upgraded shares to buy from neutral as a result.
Virgin Galactic — The space tourism company saw its shares fall more than 4.5% after reporting a widened quarterly loss from the same period a year ago. Virgin, which aims to fly its first spaceflight in nearly two years later this month, cited “increases in research and development expenses,” in a press release.
GoodRx — The digital healthcare platform lost 8.3% after giving weaker-than-expectation guidance for current-quarter and full-year revenue. However, GoodRx beat expectations for revenue in the first quarter.
Alcon — The eye care stock popped 5.1% after beating expectations on the top and bottom lines in the first quarter. Alcon reaffirmed its full-year revenue guidance and said core diluted earnings per share for the year should come in a range that encompasses the consensus estimate of analysts polled by StreetAccount.
Halozyme Therapeutics — Shares of the biopharma stock rose 1.9% after the company reaffirmed full-year earnings guidance. That helped investors overlook a miss on revenue in the first quarter. Piper Sandler upgraded the stock to overweight from neutral following the report.
Occidental Petroleum — Shares declined 1.5% after the company’s quarterly earnings missed Wall Street’s expectations. The company also reported a year-over-year decline in earnings as oil prices fell.
Akamai Technologies — Shares of the cloud company rose nearly 5% in premarket trading on better-than-expected earnings and revenue for the first quarter. Akamai also raised its full-year profit guidance.
Affirm — Shares of the buy now, pay later company dipped 5.7% in premarket trading even after Affirm reported better-than-expected quarterly results a day earlier, with an adjusted loss per share of 69 cents. Analysts polled by Refinitiv were expecting a loss of 92 cents per share.
Market News
TSMC Reports Revenue for April Approximately NT$147.90B, a Decrease of 14.3% YoY
TSMC today announced its net revenue for April 2023: On a consolidated basis, revenue for April 2023 was approximately NT$147.90 billion, an increase of 1.7 percent from March 2023 and a decrease of 14.3 percent from April 2022.
Revenue for January through April 2023 totaled NT$656.53 billion, a decrease of 1.1 percent compared to the same period in 2022.
EV Maker Faraday Future to Raise $100 Mln in Debt to Support Delivery Plans
Electric vehicle (EV) startup Faraday Future Intelligent Electric on Tuesday said it was raising $100 million in debt as it aims to achieve initial deliveries of its flagship FF 91 Futurist vehicle after a funding crunch led to multiple delays.
The company said it will also use the new debt funding to ramp up production.
Toyota Posts 35% Surge in Q4 Operating Profit
Japan's Toyota Motor Corp on Wednesday posted a 35% rise in fourth-quarter operating profit, helped by the weak yen boosting the value of overseas sales and higher output volumes that outweighed the impact of surging materials costs.
The world's largest automaker by sales said operating profit for the three months through March totalled 626.9 billion yen ($4.64 billion), easily beating the average 553.46 billion yen profit estimated by 10 analysts, according to Refinitiv data.
Tesla Says Its Texas Factory Hits Output of 5,000 Model Ys Per Week
Tesla Giga Texas has reached the 5,000-unit weekly production rate, equating to a roughly quarter-of-a-million vehicle production capacity with the Model Y.
Tesla Giga Texas reached a production rate of 3,000 Model Y units per week in December and added 1,000 more units by early April of this year. Just a little over a month later, Tesla has already reached a new milestone of 5,000 units in a single week, increasing the capacity by 20 percent in a short amount of time.