Fed reiterates pledge to use full range of tools to support the economy
U.S. stocks look set to open mixed on Thursday after the Federal Reserve said that it will leave its benchmark interest rate near zero until it is confident that the economy has “weathered recent events and is on track to achieve its maximum employment and price stability goals.”
In a press release published after the conclusion of its two-day monetary policy meeting on Wednesday, the central bank vowed to use its “full range of tools to support the U.S. economy in this challenging time.”
The Fed said it will continue to purchase Treasury securities and agency residential and commercial mortgage-backed securities in the amounts needed to support smooth market functioning.
As of this writing, futures tied to the blue-chip Dow were down 176.5 points, or 0.72% to 24,389.5. S&P 500 futures dropped 19.12 points, or 0.65% to 2,921.88 while the tech-heavy Nasdaq 100 futures gained 9.88 points, or 0.11% to 9,046.38.
Tesla shares surge after Q1 earnings beat
Tesla (NASDAQ: TSLA) shares are trading higher after the electric-car maker reported better-than-expected first quarter revenue despite disruptions caused by the coronavirus (COVID-19) pandemic.
The company also posted its third straight quarterly profit thanks to solid number of deliveries during the period. First-quarter adjusted earnings were $1.24 per share, while revenue came in at $5.99 billion.
Analysts polled by Refinitiv expected Tesla to report a loss of 36 cents per share on revenue of $5.9 billion. As of this writing, Tesla shares were up $62.99, or 7.87% to $863.5 apiece in premarket trade Thursday.
Facebook stock rises after the social media giant posts 18% revenue growth
Facebook (NASDAQ: FB) reported stronger-than-expected first quarter revenue on Wednesday evening, but earnings came up short of expectations.
The social media titan said there was a “significant reduction in the demand for advertising” and “a related decline in the pricing of our ads” over the last three weeks of the March quarter.
Excluding certain items, the company had earnings of $1.71 per share. Revenue grew 18% to $17.74 billion from the $15.08 billion reported in the same period last year. Analysts were projecting earnings of $1.75 on revenue of $17.41 billion, according to Refinitiv.
Daily active users grew 11% year-over-year to 1.73 billion. Monthly active users rose to 2.6 billion during the period, up 10% year-over-year and ahead of expectations of 2.55 billion.
Facebook shares were up $17.96, or 9.25% to $212.15 each in premarket trade Thursday.
Apple earnings and jobless claims in focus
Traders are also eyeing more earnings reports today including from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after the closing bell.
Other key earnings to watch today include Twitter (NYSE: TWTR), Comcast (NASDAQ: CMCSA), Kraft Heinz (NASDAQ: KHC), McDonald’s (NYSE: MCD), Altria (NYSE: MO) and Visa (NYSE: V).
The Labor Department’s weekly jobless claims report is scheduled for release at 8:30 a.m. ET.
