U.S. stocks set to open lower
Another day of losses is building for Wall Street on Tuesday, after the U.S. West Texas Intermediate (WTI) futures contract for May delivery fell below zero for the first time in the previous session, settling at negative $37.63 a barrel.
The unprecedented slump in the price of U.S. crude is the result of the COVID-19 pandemic, which has dented the global economy due to stay-at-home orders implemented by governments to curb its spread. This has left producers awash with oil and not enough space to store all of it, meaning they are now paying to have it taken off their hands.
By 5:30 a.m. ET, the blue-chip Dow futures indicated a loss of 314 points, or 1.34% to 23,174. S&P 500 futures dropped 24.38 points, or 0.87% to 2,782.12 while the tech-heavy Nasdaq 100 futures were down 25 points, or 0.29% to 8,667.
The more active WTI crude futures for June were down $5.98 a barrel, or 29.27% to $14.45. International Brent crude futures for June were at $19.1 a barrel, down $6.47, or 25.3%.
Netflix, Coca-Cola earnings on tap
The earnings season is gaining steam, with Coca-Cola (NYSE: KO), Netflix (NASDAQ: NFLX), Chipotle Mexican Grill (NYSE: CMG) and Snap (NYSE: SNAP) among the companies scheduled to report today.
Analysts expect Coca-Cola to report quarterly earnings of $0.45 a share on sales of $8.42 billion. The beverage giant will announce ahead of the market open. Lockheed Martin (NYSE: LMT) and Philip Morris (NYSE: PM) also report before the opening bell.
Netflix, Chipotle, and Snap will publish their quarterly results after the market close.
IBM misses on revenue and pulls full-year outlook; stock tumbles
Shares of IBM (NYSE: IBM) are falling after the tech giant returned to its pattern of revenue misses in the first quarter and withdrew its full-year guidance due to uncertainty surrounding COVID-19 pandemic.
IBM reported first-quarter revenue of $17.57 billion late Monday, missing Refinitiv forecast of $17.62 billion. IBM reported adjusted earnings of $1.84 a share, slightly ahead of Refinitiv estimate of $1.80 a share.
As of this writing, IBM stock was down $5.41, or 4.49% a share in premarket trading hours.
