Nasdaq 100, Dow Jones, S&P 500: Futures Lower on Mixed Results from Tesla, IBM

Highlights

• Tesla’s net income and GAAP earnings down over 20% YoY
• IBM beats estimates with $1.36/share earnings, but revenue misses
• KeyCorp missed Q1 earnings per share and revenue estimates

Overview

The major U.S. stock index futures are lower on Thursday as investors evaluated the most recent set of corporate earnings. Futures linked to the Dow Jones Industrial Average decreased by 0.46%, equivalent to a loss of 157 points. S&P 500 futures dropped by 0.74%, and Nasdaq-100 futures slipped by 1.01%. Investors examined a multitude of reports released by companies after Wednesday’s market close.

Tesla Falls 7% in Premarket, IBM Rises 2% as American Express Results Released

In premarket trading, Tesla, which is a favorite among retail investors, saw a decline of 7% after reporting that its net income and GAAP earnings had both decreased by more than 20% compared to the previous year. Meanwhile, IBM’s shares rose by 2% following the announcement that the company’s margins were expanding.

Investors also received an indication of the consumer’s health before the market opened, with the release of American Express’ results. Although earnings per share fell short of estimates, only causing a 1% dip in the payment company’s shares.

Pre-Opening Movers:  Tesla, IBM, American Express, KeyCorp.

Tesla’s shares experienced a decline of approximately 7% in premarket trading after the electric vehicle maker announced that its net income and earnings had both decreased by over 20% from last year. The CEO, Elon Musk, mentioned that the macroenvironment’s uncertainty could affect people’s decision to purchase cars.

IBM’s shares rose by over 1% in premarket trading after the company’s earnings beat the estimates. IBM’s adjusted earnings of $1.36 per share were better than the expected $1.26 per share as predicted by analysts, according to Refinitiv. However, the company’s revenue came in lower than anticipated as parts of the infrastructure business exhibited a slowdown.

American Express’s shares dipped by 1.3% after the payments company reported earnings per share of $2.40, which was lower than StreetAccount’s estimates of $2.66. Nevertheless, the company’s revenue surpassed expectations, with $14.28 billion compared to $13.98 billion expected.

KeyCorp’s shares decreased by approximately 3% after posting an earnings and revenue miss for the first quarter. The bank disclosed earnings per share of 30 cents and revenue of $1.71 billion, missing FactSet’s estimated 44 cents earnings per share and $1.79 billion in revenue. KeyCorp mentioned that its average deposits decreased by $2.3 billion from the previous quarter.

Earnings, Fed Speakers, Economic Data on Tap

As of Wednesday evening, FactSet reports that just over 10% of companies in the S&P 500 have disclosed their earnings.

In addition to corporate earnings, investors will closely monitor the latest reports on jobless claims and existing home sales released in the morning.

Throughout the afternoon and evening, several central bank speakers, including Federal Reserve Governor Christopher Waller, Atlanta Fed President Raphael Bostic, and Cleveland Fed President Loretta Mester, are scheduled to give speeches on the economy across the country.

Market Performance Depends on Multiple Factors.

New York Fed President John Williams stated in his late Wednesday remarks that inflation remains excessively high, and therefore, the central bank must maintain a tight policy.

Overall, the market’s performance will depend on various factors, including corporate earnings, central bank policy, and economic indicators, which will continue to shape investors’ sentiments.

For a look at all of today’s economic events, check out our economic calendar.