Today's stock market is looking up, with futures pointing to a positive opening. Here's a quick breakdown:
- S&P 500 futures are up by 11 points (0.2% above fair value).
- Nasdaq 100 futures have increased by 44 points (0.3% above fair value).
- Dow Jones Industrial Average futures have risen by 86 points (0.2% above fair value).
Big names in tech and semiconductor stocks are mostly on the rise, though Taiwan Semiconductor Manufacturing (TSM, Financial) has seen a slight drop of more than 1% after its earnings report.
Recent earnings reports have been a mixed bag. Discover Financial Services (DFS, Financial), CSX (CSX, Financial), and others have seen their stocks go up thanks to good results. However, the overall market has struggled to maintain its early gains throughout the week.
Today's economic highlights include:
- Weekly job claims and the Philadelphia Fed survey in the morning.
- March's existing home sales and leading indicators mid-morning.
- Weekly natural gas inventory update before lunch.
In company news:
- Kinder Morgan (KMI, Financial) matches earnings per share (EPS) forecasts but falls short on revenue. They expect higher EPS next year.
- Discover Financial Services (DFS, Financial) missed earnings by $1.85, but net interest income is up. They're being acquired by Capital One (COF).
- CSX (CSX, Financial) slightly beats earnings expectations with steady revenue and volume growth, and they're optimistic despite the Baltimore port closure.
- Las Vegas Sands (LVS, Financial), Alcoa (AA, Financial), Elevance Health (ELV, Financial), D.R. Horton (DHI, Financial), Alaska Air (ALK, Financial), Comerica (CMA, Financial), KeyCorp (KEY, Financial), Apogee Enterprises (APOG, Financial), Equifax (EFX, Financial), and Synovus (SNV, Financial) all reported various results, with some beating and others missing expectations.
Overnight, global markets showed mixed results:
- Asia-Pacific markets varied, with Japan, Hong Kong, and Australia seeing gains, while India and South Korea had mixed outcomes.
- European markets are mostly up, though Germany's DAX lagged due to a significant drop in a biotech stock.
There's talk of potential intervention by Japanese officials in the currency market, and Macau's visitor numbers have surged.
Today's News
In a significant corporate update, Microsoft (MSFT, Financial) announced a multi-billion dollar investment in OpenAI, the creators of ChatGPT, signaling a deeper dive into artificial intelligence technology. This move is expected to bolster Microsoft's competitive edge in the cloud computing and AI sectors, potentially reshaping its long-term growth trajectory.
Following a disappointing earnings report, 3M (MMM, Financial) revealed plans to cut about 2,500 manufacturing jobs worldwide. The decision comes as the company aims to adjust its operational structure in response to declining sales, particularly in its consumer-facing businesses, highlighting the challenges faced by traditional manufacturing sectors.
Verizon Communications (VZ, Financial) reported earnings that missed Wall Street estimates, attributing the shortfall to the competitive pressures in the wireless industry. The company also provided a cautious outlook for 2023, reflecting the ongoing challenges in attracting and retaining subscribers amid aggressive pricing and promotions by competitors.
Johnson & Johnson (JNJ, Financial) exceeded analysts' expectations in its latest quarterly earnings report, driven by strong pharmaceutical sales and a rebound in its medical devices segment. The company also issued an optimistic forecast for the year ahead, suggesting resilience in its diverse healthcare portfolio despite broader economic uncertainties.
In the automotive sector, General Motors (GM, Financial) surpassed earnings expectations, buoyed by robust demand for its trucks and SUVs. The company also announced an optimistic sales outlook, signaling confidence in its ability to navigate supply chain disruptions and capitalize on the growing appetite for electric vehicles.
Lockheed Martin (LMT, Financial) delivered a mixed financial report, with earnings topping expectations but revenue falling short. The defense contractor also forecasted lower-than-expected sales for the upcoming year, citing geopolitical tensions and global supply chain issues as potential headwinds for the defense industry.
Amidst a backdrop of regulatory scrutiny, Alphabet (GOOGL, Financial) faces a new lawsuit from the Department of Justice and several states, challenging its dominance in the digital advertising market. The legal battle could have far-reaching implications for the tech giant's business model and the broader online advertising landscape.
Union Pacific (UNP, Financial) announced an executive shakeup, with the appointment of a new CEO following pressure from an activist investor. The change at the helm aims to address operational challenges and improve performance, as the company navigates the complexities of the freight and logistics market.
Lastly, in a move that underscores the growing importance of renewable energy, NextEra Energy (NEE, Financial) has made a significant investment in expanding its wind and solar capacity. This strategic direction not only enhances the company's sustainability efforts but also positions it favorably in a market increasingly driven by clean energy initiatives.
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