Stock futures traded lower Thursday and technology shares sank after Meta Platforms issued a disappointing outlook.
These stocks were set to make moves Thursday:
Meta Platforms reported first-quarter earnings and revenue that topped expectations but guidance missed and shares of the parent of Facebook and Instagram were tumbling 13%. Meta said it sees second-quarter revenue of between $36.5 billion and $39 billion; the midpoint of the range was just shy of consensus of $38.2 billion. Meta projected capital expenditures of between $35 billion and $40 billion this year, above its previous range of $30 billion to $37 billion, on higher artificial-intelligence-related spending.
International Business Machines reached a deal to buy the cloud-software company HashiCorp for $35 a share in cash, or about $6.4 billion. It also reported first-quarter revenue of $14.47 billion, up 1% or 3% adjusted for currency, but just below Wall Street estimates of $14.53 billion. Adjusted earnings were $1.68 a share, higher than consensus of $1.60. Free cash flow at IBM was $1.9 billion, up $600 million from the year-earlier. IBM shares were down 8.4% in premarket trading. HashiCorp jumped 3.8% to $32.92.
Ford Motor's first-quarter adjusted earnings of 49 cents a share beat analysts' estimates and shares of the auto maker were rising 2.5%. Ford reported an operating profit in the period of $2.8 billion on sales of $42.8 billion, while Wall Street was anticipating operating profit of $2.5 billion on sales of $42.9 billion. Ford's electric-vehicle business, called Model e, lost $1.3 billion in the first quarter compared with a loss of $1.6 billion in the fourth quarter of 2023. Ford's commercial business, Ford Pro, generated an operating profit of $3 billion in the first quarter, up from the $1.8 billion in the fourth quarter.
Anglo American shares surged 11% in London after it received an all-stock offer from BHP, the world's largest mining company. Anglo American, which has a market capitalization of about $35 billion, said its board was reviewing the proposal with its advisers. In a statement, Anglo American called the BHP offer "unsolicited, non-binding and highly conditional." The deal would be contingent on Anglo American spinning off shareholdings in two South Africa-listed units.
ServiceNow posted first-quarter earnings and revenue that topped Wall Street estimates and the digital workflow software company continued to talk up new AI enhancements across its product line. ServiceNow said subscription revenue rose 25% to $2.52 billion, topping estimates of $2.51 billion. The stock was down 4.5%, however, after the company said it expects second-quarter subscription revenue of $2.525 billion to $2.53 billion, up 22% in constant currency with the top of that range matching consensus. Operating margin for the quarter was forecast at 25%, slightly below Wall Street expectations of 25.9%.
First-quarter earnings and revenue at Chipotle Mexican Grill beat Wall Street expectations. "We had another outstanding quarter driven by our improvement in throughput and successful marketing initiatives, including Braised Beef Barbacoa and Chicken Al Pastor, which drove strong sales and transactions," said Chief Executive Brian Niccol in a statement.
Earnings reports are expected Thursday from Microsoft, Alphabet, Merck, T-Mobile, Caterpillar, Comcast, Intel, Union Pacific, Honeywell, Bristol Myers Squibb, GE Vernova, Snap, Altria, American Airlines, Southwest Airlines, and Royal Caribbean.
Microsoft is forecast by analysts to report fiscal third-quarter earnings of $2.82 a share on revenue of $60.9 billion. The focus for investors in Microsoft's report likely will be on the cloud and the company's push to make money from artificial intelligence. The stock was falling 1.6% ahead of its report scheduled for after the close of trading Thursday.
Google parent Alphabet, meanwhile, is expected by Wall Street to report first-quarter earnings of $1.51 a share on revenue of $78.7 billion, up 13% from a year earlier. Alphabet shares were down 2.9% in premarket trading.
