US stock futures rose ahead of Thursday’s open as investors prepare for another round of corporate earnings and the release of gross domestic product data.
Futures on the S&P 500 (^GSPC) were up 0.3%, while futures on the Dow Jones Industrial Average (^DJI) were flat. Contracts on the technology-focused Nasdaq Composite (^IXIC) were up about 0.8%.
The benchmark 10-year US Treasury yield rose to 3.478% from 3.461% on Wednesday. The dollar index was little changed.
Stocks rose from Wednesday’s session lows, ending the session largely flat as 12 of the 24 industry groups reached positive territory for the day.
On Wednesday afternoon, Tesla (TSLA) released its results after the bell. The results showed the electric car maker beat expectations in its latest quarter, netting $3.7 billion on revenue of $24.3 billion. Tesla has announced that it will ship about 1.8 million vehicles this year. This means that production will increase he by 37%. Shares rose 7% in pre-market trading.
International Business Machines (IBM) also joined the wave of job cuts, saying it would cut about 3,900 jobs. The reduction comes from Kyndryl Holdings, an IT services business that IBM spun off last year. As a result, the company said he would need a $300 million hit in the first quarter to pay for employee severance costs.
The hybrid cloud and infrastructure company also reported fourth-quarter revenue that slightly exceeded analyst expectations, with revenue of $16.69 billion. Adjusted earnings per share were $3.60, in line with analyst expectations. Stocks fell 2% before opening.
Shares of Facebook parent company Meta (META) were flat ahead of market trading after the company decided to revive former President Donald Trump’s Instagram and Facebook accounts. The end of the ban stemming from the January 6, 2021 riots will come at the start of the 2024 presidential election season.
In other share moves, shares of American Airlines (AAL) rose on Thursday’s opening bell after the company said it expects earnings to beat forecasts this year as the industry remains in recovery mode. rose ahead.
Southwest Airlines (LUV) shares fell after the airline announced a $220 million loss in the fourth quarter as a holiday meltdown last month led to the cancellation of thousands of flights. bottom. Southwest has lowered its revenue forecast for this year, he said, to $350 million as it addresses ongoing cancellations and declining bookings.
Comcast (CMCSA) shares rose after the media company reported fourth-quarter earnings of $30.55 billion, better than expected. Comcast said it lost a total of 26,000 broadband customers after Hurricane Ian hit its southeastern coast in September. However, the company was able to turn around. This is partly due to increasing its share of advertising dollars to the network during the World Cup soccer tournament and the US presidential election in November.
Investors continue to digest earnings season, with reports from names like Visa (V) and Intel (INTC) all in store for Thursday.
Earnings season is in full swing this week, with 173 companies reporting as of Wednesday. According to Bespoke Investments, six of them report a triple play in earnings. A triple play occurs when a company earns more than its top and bottom lines and simultaneously raises its guidance forecast.
Investors and economists received a decision from the Bank of Canada on Wednesday in anticipation of the Federal Reserve’s decision next week. The central bank raised its benchmark by 25 basis points on Wednesday to 4.5%, the highest level in 15 years. This was an expected move, a clear indication that banks were ready to pause their aggressive tightening cycle.
Bank of Canada Governor Tiff Macklem has clarified that “this is a conditional moratorium”, but officials say the current policy rate is restrictive enough to restore price stability. is confident that
Meanwhile, the Federal Reserve is in a blackout period at home ahead of its next monetary policy meeting, which begins on January 31st.
But the Washington Post reported Wednesday that Federal Reserve Vice Chairman Lael Brainard is seen as the frontrunner to head the White House’s National Economic Council. As it stands, Brainerd’s position as both governor and vice-chair currently holds until 2026.
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Dani Romero is a reporter at Yahoo Finance. follow her on her twitter @daniromerotv
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