Nasdaq Futures Climb on Tesla Boost, Meta Earnings in Focus

June Nasdaq 100 E-Mini futures (NQM24) are trending up +0.53% this morning as Tesla surged on new EV promises and investors looked ahead to the next round of corporate earnings.

Tesla (TSLA) surged over +10% in pre-market trading, despite reporting a sharp drop in Q1 revenue, deliveries, margins, and EPS from a year ago. However, the automaker said it would speed up the launch of new vehicles, including more affordable models. “These new vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up,” the company stated. In addition, BofA upgraded the stock to Buy from Neutral with a $220 price target.

In yesterday’s trading session, Wall Street’s major indexes closed higher, with the blue-chip Dow rising to a 1-1/2 week high. Globe Life (GL) climbed over +14% and was the top percentage gainer on the S&P 500 after boosting its annual operating EPS forecast. Also, General Motors (GM) advanced more than +4% after the automaker posted upbeat Q1 results and lifted its full-year adjusted EPS guidance. In addition, Hibbett (HIBB) surged over +18% after JD Sports agreed to acquire the sporting goods retailer for about $1.1 billion. On the bearish side, JetBlue (JBLU) tumbled more than -18% after the low-cost airline lowered its full-year revenue guidance. Also, PepsiCo (PEP) fell nearly -3% and was the top percentage loser on the Nasdaq 100 after the snacks and soft drinks behemoth provided a below-consensus FY24 organic revenue growth forecast.

Economic data on Tuesday showed that the U.S. S&P Global manufacturing PMI unexpectedly fell to a 4-month low of 49.9 in April, weaker than expectations of 52.0. Also, the U.S. April S&P Global services PMI came in at 50.9, weaker than expectations of 52.0. In addition, the U.S. Richmond Fed manufacturing survey arrived at -7 in April, in line with expectations. At the same time, U.S. March new home sales rose +8.8% m/m to a 6-month high of 693K, stronger than expectations of 668K.

Meanwhile, U.S. rate futures have priced in a 1.9% chance of a 25 basis point rate cut at the next central bank meeting in May and a 15.0% chance of a 25 basis point rate cut at the conclusion of the Fed’s June meeting.

On the earnings front, notable companies like Meta Platforms (META), IBM (IBM), AT&T (T), Boeing (BA), Chipotle (CMG), General Dynamics (GD), Hilton Worldwide (HLT), and Ford Motor (F) are slated to release their quarterly results today. 

On the economic data front, all eyes are focused on U.S. Durable Goods Orders data in a couple of hours. Economists, on average, forecast that March Durable Goods Orders will stand at +2.5% m/m, compared to the previous value of +1.3% m/m.

Also, investors are likely to focus on U.S. Core Durable Goods Orders data, which was at +0.5% m/m in February. Economists foresee the March figure to be +0.3% m/m.

U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be 1.600M, compared to last week’s value of 2.735M.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.630%, up +0.67%.

The Euro Stoxx 50 futures are up +0.28% this morning as investors digested the latest batch of corporate earnings. Mining and technology stocks gained ground on Wednesday, while bank and luxury stocks underperformed. A survey showed on Wednesday that German business sentiment improved more than expected in April. Meanwhile, European Central Bank Governing Council member Joachim Nagel stated on Wednesday that the central bank can’t commit to what will happen after a probable initial reduction in borrowing costs in June. “Given the current uncertainty, we cannot pre-commit to a particular rate path,“ he said. In corporate news, Asm International N.V. (ASM.NA) surged over +10% after the company reported Q1 new orders that topped expectations and raised its Q2 revenue guidance. At the same time, Kering (KER.FP) plunged more than -8% after the luxury good maker said it expects a decline of 40% to 45% in first-half operating income. Also, Svenska Handelsbanken Ab (SHBA.S.DX) slumped over -10% after Sweden’s largest property lender reported weaker-than-expected Q1 earnings. 

Germany’s Ifo Business Climate Index, Germany’s Business Expectations, and Germany’s Current Assessment data were released today.

The German April Ifo Business Climate Index has been reported at 89.4, stronger than expectations of 88.9. 

The German April Business Expectations arrived at 89.9, stronger than expectations of 88.9.

The German April Current Assessment came in at 88.9, stronger than expectations of 88.7.

Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.76%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.42%.

China’s Shanghai Composite Index closed higher today, tracking global peers higher as sentiment was boosted by solid earnings from U.S. companies and rate-cut relief following weaker-than-expected U.S. preliminary PMI data. Semiconductor and software stocks outperformed on Wednesday. Goldman Sachs on Tuesday projected a potential increase of up to 40% for Chinese shares should the country implement reforms in corporate governance, dividend distributions, and institutional ownership. Meanwhile, officials from the People’s Bank of China told the state-run Financial News that the central bank intends to adhere to normal monetary policy tools, reinforcing views that it is unlikely to deliver a substantial liquidity boost through bond trading. In other news, Bloomberg News reported Wednesday that Chinese developer Country Garden Holdings Co. won approval to defer payments on three yuan bonds. In corporate news, SenseTime’s shares surged over +31% and were halted after the Chinese tech firm released the latest version of its generative artificial intelligence model, called SenseNova 5.0.

Japan’s Nikkei 225 Stock Index closed sharply higher today, rising above the 38,000 mark as investors continued to scoop up tech-related stocks following a positive session on Wall Street. Chip stocks led the gains on Wednesday, with Renesas Electronics soaring over +10% and Tokyo Electron climbing more than +7%. Data showed on Wednesday that Japan’s annual business-to-business service inflation accelerated for the second consecutive month in March. Meanwhile, the yen hovered just shy of the crucial 155 level against the dollar, with former top Japanese foreign exchange official Mitsuhiro Furusawa cautioning that the country is on the brink of currency intervention. In corporate news, Nikon surged over +10% after a London-based firm, Silchester International Investors, disclosed it had taken a 5% stake in the Tokyo-based company. Also, Shimano gained about +4% after the company raised its full-year net profit guidance. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -3.43% to 20.01.

The Japanese March Corporate Services Price Index came in at +2.3% y/y, stronger than expectations of +2.1% y/y.

Pre-Market U.S. Stock Movers

Tesla (TSLA) surged over +10% in pre-market trading, despite reporting a sharp drop in Q1 revenue, deliveries, margins, and EPS from a year ago. However, the automaker said it would speed up the launch of new vehicles, including more affordable models. In addition, BofA upgraded the stock to Buy from Neutral with a $220 price target.

Texas Instruments (TXN) climbed more than +6% in pre-market trading after the chipmaker posted upbeat Q1 results and provided solid Q2 revenue guidance.

Visa (V) gained over +2% in pre-market trading after the payment network company reported better-than-expected Q2 results.

Enphase Energy (ENPH) slumped more than -7% in pre-market trading after reporting downbeat Q1 results and offering a below-consensus Q2 revenue forecast.

Seagate Technology (STX) rose over +1% in pre-market trading after the company reported stronger-than-expected Q3 EPS.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - April 24th

Meta Platforms (META), Thermo Fisher Scientific (TMO), IBM (IBM), ServiceNow Inc (NOW), AT&T (T), Lam Research (LRCX), Boeing (BA), Boston Scientific (BSX), Waste Management (WM), General Dynamics (GD), Chipotle Mexican Grill (CMG), CME Group (CME), Amphenol (APH), O’Reilly Automotive (ORLY), Ford Motor (F), Hilton Worldwide (HLT), Old Dominion Freight Line (ODFL), TE Connectivity (TEL), United Rentals (URI), Waste Connections (WCN), Otis Worldwide (OTIS), Humana (HUM), Vertiv Holdings Co (VRT), Fortive (FTV), Biogen (BIIB), Raymond James Financial (RJF), Westinghouse Air Brake (WAB), Align (ALGN), Entergy (ETR), Molina Healthcare (MOH),  Rogers Communications (RCI), Rollins (ROL), Teledyne Technologies (TDY), Sendas Distribuidora (ASAI), Tyler Technologies (TYL), Biomarin Pharma (BMRN), Synchrony Financial (SYF), Avery Dennison (AVY), Lennox (LII), Masco (MAS), Bunge (BG), Teradyne (TER), Watsco (WSO), Graco (GGG), New Oriental Education&Tech (EDU), Owens Corning (OC), IPG (IPG), Universal Health Services (UHS), Antero Resources Corp (AR), Chemed (CHE), Churchill Downs (CHDN), SEI (SEIC), CACI (CACI), Encompass Health (EHC), Hasbro (HAS), Stifel (SF), Knight-Swift Trans (KNX), Evercore (EVR), Viking Therapeutics Inc (VKTX), Lithia Motors (LAD), FirstService (FSV), ChampionX Corp (CHX), Antero Midstream (AM), Landstar (LSTR), Prosperity Bancshares (PB), First American (FAF), Alamos Gold (AGI), BOK Financial (BOKF), Whirlpool (WHR), Meritage (MTH), Wyndham Hotels (WH), Celestica Inc. (CLS), Mr. Cooper (COOP), Pegasystems (PEGA), SLM (SLM), Essential Properties (EPRT), ASGN (ASGN), PennyMac Financial (PFSI), Western Union (WU), Silicon Labs (SLAB), Moelis & Co (MC), Aeroportuario del Centro Norte (OMAB), Independence Realty Trust Inc (IRT), Blackstone Mortgage (BXMT), Virtu Financial Inc (VIRT), Impinj (PI), M/I Homes (MHO), Travel + Leisure Co (TNL), Methanex (MEOH), Constellium Nv (CSTM), United Community Banks (UCBI), Quantumscape (QS), First Interstate BancSystem (FIBK), Plexus (PLXS), Century Communities (CCS), CVB Financial (CVBF), Simmons First National (SFNC), Oceaneering International (OII), Goosehead Insurance (GSHD), Pacific Premier (PPBI), Navient (NAVI), Stewart Info Services (STC), Live Oak Bancshares Inc (LOB), MaxLinear (MXL), MaxLinear (MXL), Nordic Semiconductor (NDCVF), Veris Residential (VRE), PROG Holdings (PRG), National Bank Holdings (NBHC), Pathward Financial (CASH), PennyMac Mortgage (PMT), Wabash National (WNC).

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