Today's stock market is showing mixed signals in the early hours. S&P 500 futures are unchanged, while Nasdaq 100 futures have dropped slightly by 28 points. Conversely, the Dow Jones Industrial Average futures have risen by 22 points.
Highlighting individual stocks, Walt Disney (DIS, Financial) has seen a significant drop of 6% prior to the market opening due to disappointing earnings. Similarly, Palantir (PLTR, Financial) is also down substantially in early trading. In the bond market, the 10-year Treasury note yield has decreased by two basis points to 4.47%, and the 2-year note yield has increased by one basis point to 4.83%. Additionally, a $58 billion 3-year Treasury note auction is set for later today at 1:00 p.m. ET.
Tomorrow, the March Consumer Credit report is scheduled to be released at 3:00 p.m. ET.
Key company updates include:
- Walt Disney (DIS, Financial) reported earnings slightly above expectations with revenue meeting forecasts. They expect adjusted EPS for FY24 to align with predictions.
- Apple (AAPL, Financial) is reportedly developing AI chips for data centers, as per a WSJ article.
- Palantir (PLTR, Financial) matched EPS forecasts, exceeded revenue expectations, and raised its revenue outlook for Q2 and FY24.
- Microchip (MCHP) met earnings and revenue expectations but provided a weaker than expected outlook for the next quarter. They also raised their quarterly dividend by 18%.
- UPS (UPS, Financial) announced the departure of CFO Brian Newman for personal health reasons, effective June 1.
- International Flavors (IFF) exceeded earnings and revenue estimates, provided a positive revenue forecast for FY24, and announced the upcoming retirement of CFO Glenn Richter at the end of 2024.
- Lucid Group (LCID, Financial) missed earnings estimates but reported expected revenues and confirmed their annual production target.
- UBS AG (UBS, Financial) shared its first-quarter results and provided an outlook.
- Coherent (COHR) surpassed earnings and revenue expectations and guided in-line earnings and revenues for the upcoming quarter.
- BP (BP) missed both earnings and revenue estimates.
- Target (TGT) was upgraded to Buy from Neutral at Citigroup.
- Gap (GPS) also received an upgrade to Buy from Neutral at Citigroup.
Reviewing overnight developments:
Today's News
Tesla (TSLA, Financial) has unveiled ambitious expansion plans, aiming to increase its manufacturing footprint with new facilities in Asia and Europe. The announcement spurred investor optimism, driving the stock price up as the market responded positively to Tesla's strategy for scaling production and tapping into new international markets.
In the tech sector, Apple (AAPL, Financial) and Microsoft (MSFT) led a significant rally among major technology companies. Both stocks saw substantial gains, attributed to robust quarterly earnings reports and bullish investor sentiment regarding the tech industry's growth prospects amidst increasing digital transformation trends.
Pharmaceutical giant Pfizer (PFE) reported better-than-expected earnings for the quarter, driven by strong sales of its vaccine and therapeutic products. The company also raised its full-year guidance, signaling confidence in sustained demand for its COVID-19 related portfolio alongside its other pharmaceutical offerings.
Amazon (AMZN) has announced a strategic acquisition of a smaller e-commerce firm specializing in artificial intelligence and machine learning. This move is seen as an effort to enhance Amazon's technological edge in the highly competitive online retail space. The stock reacted positively as analysts praised the strategic fit and potential for innovation-driven growth.
ExxonMobil (XOM) shared its quarterly results, which exceeded analysts' expectations. The company benefited from higher oil prices and improved refining margins. ExxonMobil's stock edged higher as the energy sector continues to recover from the previous year's volatility.
Bank of America (BAC) disclosed a strategic overhaul of its consumer banking division, aiming to enhance digital services and streamline operations. The news was well-received by the market, reflecting in a modest uptick in its stock as investors anticipate improvements in operational efficiency and customer service.
In the automotive sector, Ford (F) announced the launch of a new electric vehicle model, which is seen as a direct competitor to Tesla. The market reacted cautiously, with Ford's stock making modest gains as analysts and investors assess the potential impact on Ford's market share in the growing electric vehicle segment.
Walmart (WMT) is expanding its online marketplace to include luxury goods, aiming to capture a broader customer base and compete more aggressively with e-commerce giants like Amazon. The announcement led to a slight increase in Walmart's stock, as the market reacted to the potential for increased sales and customer engagement.
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