Sign up
Log in
US STOCKS-Futures falter as Meta Platforms weighs on megacaps
Share
Listen to the news
US STOCKS-Futures falter as Meta Platforms weighs on megacaps

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a window

IBM down after Q1 revenue miss, HashiCorp deal

Caterpillar falls on downbeat Q2 sales forecast

Futures down: Dow 0.58%, S&P 0.71%, Nasdaq 1.07%

Updated at 7:10 a.m. ET/1110 GMT

By Shristi Achar A and Shashwat Chauhan

- U.S. stock index futures slipped on Thursday as shares of most megacap growth stocks took a beating after dour quarterly results from Meta Platforms, ahead of more economic data in the week that could influence the Federal Reserve's monetary policy.

Meta META.O plunged 14.1% in premarket trading after the Facebook-parent forecast higher expenses and lighter-than-expected revenue.

Social media firms such as Snap SNAP.N and Pinterest PINS.N fell 5.1% and 4.8%, respectively.

Most other growth stocks also came under pressure, with Alphabet GOOGL.O, Amazon.com AMZN.O and Microsoft MSFT.O down between 2% and 2.9%.

"These earnings were a test to see if Big Tech firms that implement AI tech, rather than make the hardware, can generate revenue from AI. On this front, Meta's earnings were a disappointment," Kathleen Brooks, research director at XTB, said.

Alphabet, Microsoft and Intel INTC.O are scheduled to report their quarterly on Thursday after markets close.

At 7:10 a.m. ET, Dow e-minis 1YMcv1 were down 226 points, or 0.58%, S&P 500 e-minis EScv1 were down 36.5 points, or 0.71%, and Nasdaq 100 e-minis NQcv1 were down 189.25 points, or 1.07%.

Growing tensions in the Middle East and shifting expectations for interest rate cuts from the Fed have pressured equities recently, with markets keenly awaiting the Personal Consumption Expenditures (PCE) index, the U.S. central bank's preferred inflation gauge, on Friday to ascertain the timing of the rate cut.

Money markets are pricing in just about 42 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year, according to LSEG data.

For the day, focus will be on gross domestic product advance data for the first quarter and weekly jobless claims , both due at 8:30 a.m. ET.

Downbeat results from other technology-linked stocks also weighed on equities.

International Business Machines IBM.N dropped 8.6% after the firm said it will buy HashiCorp HCP.O in a deal valued at $6.4 billion, and as its first-quarter revenue missed estimates.

Southwest Airlines LUV.N slid 8.8% after slashing its estimates for aircraft deliveries from Boeing BA.N in 2024 for the third time, saying it plans to undertake cost-cutting measures to ease the resultant blow.

Caterpillar CAT.N lost 3.9% after the company said it expects sales to fall in the second quarter as demand for its construction equipment eases from last year's boom.

Royal Caribbean Group RCL.N gained 3.6% after the cruise operator raised its annual profit forecast for a second time.

Comcast CMCSA.O added 2% after beating quarterly revenue estimates, while Ford F.N gained 2.1% as the automaker's first-quarter earnings beat Wall Street's expectations.


(Reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta)

((Shristi.AcharA@thomsonreuters.com; https://twitter.com/ShristiAchar; Shashwat.Chauhan@thomsonreuters.com))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.