S&P futures are down 22 points, trading 0.4% below fair value. Nasdaq futures are down 46 points, trading 0.3% below fair value. Dow Jones Industrial Average futures are down 340 points, trading 0.9% below fair value.
Dow futures are sharply lower due to a pre-open drop in Salesforce (CRM, Financial) shares after disappointing guidance. S&P 500 and Nasdaq 100 futures are also down, influenced by yesterday's market consolidation and a defensive stance amid rising rates.
Treasury yields are slightly down this morning. The 10-year note yield is down three basis points to 4.59%, and the 2-year note yield is down two basis points to 4.96%.
The Treasury market sentiment might change after the second estimate of Q1 GDP is released at 8:30 ET. Other data today include weekly jobless claims, April's Adv. Intl. Trade in Goods, advance Retail Inventories, and advance wholesale inventories at 8:30 ET. Pending home sales for April will be released at 10:00 ET.
In corporate news:
Today's News
Stock index futures were lower on Thursday, driven by a disappointing first-quarter earnings report from Salesforce (CRM, Financial). Shares of Salesforce tumbled 16% in premarket trade after the enterprise software giant reported fiscal first-quarter results and guidance that missed estimates. Wall Street ended in the red on Wednesday, as equities came under pressure amid a bond sell-off. Losses in airline stocks and managed care players also weighed on markets.
In early trading on Thursday, Tesla (TSLA, Financial) edged higher amid reports that the electric vehicle maker is close to registering its Full Self-Driving (FSD) software with authorities in China. If successful, Tesla employees could conduct internal testing of FSD on public roads in China, with plans to offer FSD as an upgrade to Chinese customers later this year. This move could open a crucial revenue source for Tesla, which has seen its sales volume in the region fall by more than 7% through the first four months of the year.
Google (GOOG, Financial) (GOOGL, Financial) confirmed that 2,500 leaked internal documents detailing data tracked by the search giant are authentic. The documents contain details on Google's secret algorithm for ranking search results. The leaked information, along with Google's testimony in the DOJ case, sheds more light on the kind of data that the leading search engine collects and uses.
Maxeon Solar Technologies (MAXN, Financial) saw its shares plummet 61% after reporting mixed Q1 results and initiating a Q2 and FY24 outlook. UiPath (PATH, Financial) shares dropped 29% despite upbeat Q1 results, overshadowed by the announcement of CEO Rob Enslin's resignation. Other notable decliners included Biosig Technologies (BSGM), down 26% on pricing of 1.57M shares at $1.91 in a registered direct offering, and Kohl's (KSS), which fell 23% on its Q1 earnings release.
Alibaba (BABA, Financial) has invested about 200M yuan (approximately $27.6M) in AI education start-up Zhejiang Jingzhunxue. The funding will support the development and promotion of the startup's AI-powered education device, Bong, which is slated to be launched in June. This investment continues Alibaba's heavy betting on the AI sector.
Mizuho USA upgraded PayPal Holdings (PYPL, Financial) to Buy from Neutral, citing the potential for the fintech's newly introduced Fastlane product and the stabilization of its branded checkout trends. Analyst Dan Dolev noted that Fastlane could lead to a $1.0B-$1.5B transaction margin dollar increase, based on the $1.43T annual e-commerce spending market addressable by Fastlane. PayPal stock rose 2.7% in Thursday premarket trading.
Palantir (PLTR, Financial) has been awarded a $480M fixed-price contract from the U.S. Department of Defense for a prototype of its Maven artificial intelligence system. The contract is set to be completed by May 28, 2029, and involves the development of an AI tool to process imagery and full-motion video from drones to automatically detect potential targets.
Cloud company Cloudflare (NET, Financial) announced the acquisition of the Zero Trust infrastructure access platform BastionZero to further strengthen its remote access to core IT systems for customers of its secure access service edge platform, Cloudflare One. The terms of the acquisition were not disclosed.
Shares of Pure Storage (PSTG, Financial) surged 10% following better than expected Q1 results, with revenue growth of 18% driven by subscription revenue growth of 23% Y/Y. The company expects Q2 revenue of $755M, above the consensus of $751.68M. However, Pure Storage expects FY25 revenue of $3.1B, slightly below the consensus of $3.13B.
C3.ai (AI) shares jumped 9% after reporting strong fiscal fourth-quarter results and a better-than-expected fiscal 2025 forecast. The company is seeing an acceleration in subscription growth, indicating that headwinds from the migration to a usage-based revenue model are abating. Analysts praised the strong pilot growth and rising demand for generative artificial intelligence, suggesting C3.ai's high growth should continue.
Initial jobless claims rose by 3K for the week ended May 25 to 219K, compared with 218K expected and 216K in the prior week. The four-week moving average was 222.5K, an increase of 2,500 from the prior week's average. Continuing claims increased to 1.791M from 1.787M in the previous week.
U.S. Corporate Profits for the first quarter were revised to -1.7% Q/Q to $3.93T, compared to +3.9% expected and +3.7% in the prior estimate.
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