Stock futures pointed lower Wednesday as Wall Street geared up for Nvidia's fourth-quarter earnings report and the release of the minutes from the Federal Reserve's latest policy meeting.
These stocks were set to make moves Wednesday:
Nvidia fell 1.4% in premarket trading as investors prepared for the chip maker's earnings report scheduled for after the closing bell. The stock tumbled 4.4% on Tuesday, losing about $75 billion of market value. It was the stock's steepest decline since October. Wall Street expects Nvidia to report revenue of $20.4 billion -- up nearly 240% from a year earlier -- with adjusted earnings of $4.59 a share versus year-earlier profit of 88 cents.
Amazon.com, the e-commerce and technology giant, will be added to the Dow Jones Industrial Average at the start of trading Monday, replacing Walgreens Boots Alliance. It's the first change in the blue-chip index since 2020. Walgreens was added to the index in 2018. Amazon rose 1.3% in premarket trading while Walgreens declined 2.7%.
Palo Alto Networks reported fiscal second-quarter adjusted earnings and revenue that topped analysts' expectations but the stock fell 23% after the cybersecurity company cut its fiscal-year revenue outlook. Palo Alto said it expects revenue of between $7.95 billion and $8 billion in the fiscal year, down from a previous estimate of between $8.15 billion and $8.2 billion. CEO Nikesh Arora said the guidance didn't reflect a change of demand but a strategy shift as Palo Alto looks to become a "platform" within the cybersecurity sector.
SolarEdge Technologies dropped 16% after the maker of inverters and other solar-power equipment reported a drop of 65% in fourth-quarter revenue and said it expects first-quarter revenue of $175 million to $215 million, a decline of 77% to 81% from a year earlier. "The first half of 2023 included record installations and expectations for continued growth, with a shift in the second half of the year to a weaker market due to higher interest rates and lower power prices, which resulted in an inventory buildup that slowed our shipments," said CEO Zvi Lando.
Teladoc Health tumbled 21% after the telehealth provider said it expects first-quarter sales of $630 million to $645 million, below analysts' forecasts of $673 million. The company said it anticipates a loss in the period of 45 cents to 55 cents a share, wider than expectations that called for a loss of 41 cents.
RingCentral, the cloud-based communications company, was falling 6.5% after its sales guidance for the fiscal first quarter and fiscal year was short of analysts' expectations.
Caesars Entertainment reported a fourth-quarter loss of 34 cents a share, narrower than a year-earlier loss of 70 cents. Revenue was $2.83 billion, below analysts' estimates of $2.85 billion. The stock was down 0.5%.
Oil and natural gas company Diamondback Energy posted fourth-quarter adjusted earnings of $4.74 a share, better than analysts' projections of $4.70. Fourth-quarter oil production averaged 273.1 thousand barrels of oil equivalent per day, up from 226.1 thousand a year earlier. Shares were up 1.1%.
Toll Brothers, the luxury home builder, reported fiscal first-quarter earnings that beat analysts' estimates as revenue jumped 9% to a better-than-expected $1.95 billion. The company delivered 1,927 homes in the period, up 6% and ahead of the 1,864 expected by analysts.
In addition to Nvidia, earnings reports are expected Wednesday from Analog Devices, Rivian Automotive, Lucid Group, Marathon Oil, Synopsys, Vertiv Holdings, and Etsy.