Meta, Boeing, Ford, Pinterest earnings on tap
U.S. stock futures soared early Wednesday, implying major indexes will rebound at the opening bell after the Dow plunged 810 points, or 2.4% yesterday amid fears of an economic slowdown.
Major companies reporting earnings today include Ford Motor (NYSE: F), Facebook parent Meta Platforms (NASDAQ: FB), Bunge (NYSE: BG), Boeing (NYSE: BA), Harley-Davidson (NYSE: HOG), and Pinterest (NYSE: PINS).
As of 5:15 a.m. ET, futures tied to the Dow surged 340 points, or 1.03% to 33,500. S&P gained 36.5, or 0.88% to 4,207 while the tech-heavy Nasdaq 100 were marked 117 points, or 0.9% to 13,133.
Tesla shares under pressure after Musk’s Twitter takeover
Meanwhile, shares of Twitter (NASDAQ: TSLA) were trading lower again in Wednesday’s premarket trading session after falling sharply on Tuesday.
The losses came after CEO Elon Musk clinched a deal to buy Twitter (NYSE: TWTR) for about $44 billion, leaving Tesla shareholders concerned about how the deal could affect shares of the electric car maker.
Musk disclosed in filing last week that he has secured $46.5 billion in loans and $21 billion in equity financing. Analysts believe he is very likely to sell a huge portion of the Tesla shares he owns or borrow against them to finance the deal.
Wells Fargo analyst Colin Langan on Tuesday warned Tesla shareholders that the Twitter acquisition could distract Musk, as he is also in charge of other important business ventures including Neuralink, SpaceX, and the Boring Company.
Tesla shares were down 0.16% to $875.61 apiece in premarket hours. The stock plunged 12.2% on Tuesday, losing more than $125 billion of its market value.
Alphabet sinks as YouTube slowdown weighs on Q1 earnings
Alphabet (NASDAQ: GOOG), the parent company of Google, reported disappointing first-quarter results late Tuesday, sending its shares lower in extended trading hours. b
The search giant earned $16.44 billion, or $24.62 per share in the quarter, down from $17.93 billion, or $26.29 per share a year ago. Companywide revenue stood at $68.01 billion, up 23% from last year.
Analysts polled by Refinitiv had called for earnings of $25.91 per share on revenue of $68.11 billion.
Video subsidiary YouTube posted revenue of $6.87 billion, up $14% but below analysts’ expectations of $7.5 billion.
Alphabet’s board of directors also approved a $70 billion share buyback program, a significant increase from $50 billion approved in 2021.
Shares of Alphabet, which dropped 3% on Tuesday, fell another 2.67% in the premarket trading session to around $2,326.40.
