Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Wall Street will open higher after the fall of the Nasdaq by nearly 4%.
Traders work on the floor of the New York Stock Exchange.
NYSE
U.S. stock futures rebounded on Wednesday, boosting Microsoft’s Dow’s jump by more than a 5% pre-market jump after a better-than-expected quarterly earnings report after Tuesday’s close. However, Alphabet, a parent of Google, fell 2.5% in the pre-market on Wednesday morning after weak profits. Meta Platforms and Ford, Facebook’s mother, are among many companies posting quarterly results after Wednesday’s closing bell.
- Technology stocks plummeted on Wall Street on Tuesday. Nasdaq lost nearly 4%, its biggest loss in a single session since September 2020. It sank even further into the bear market, as determined by a drop of 20% or more from its newest peaks. Tesla fell 12 percent over concerns about CEO Elon Musk’s deal to buy Twitter. Tesla shares recovered nearly 2.5% on the preliminary market.
- The Dow Jones Industrial Average fell 809 points, or 2.4 percent, on Tuesday, just off a correction from its last record close.
- The S&P 500 fell 2.8%, falling further into correction territory, as determined by a drop of 10% or more from the last peaks.
- The 10-year reference yield on government bonds rose on Wednesday, but was below the recent peak of 2.94%, a level not seen since late 2018.
2. Big profits beat Microsoft, big gaps in Alphabet
Satya Nadela, CEO of Microsoft Corp., spoke at the Microsoft Build Developers Conference in San Francisco on March 30, 2016.
David Paul Morris Bloomberg | Getty Images
Microsoft earned an adjusted 2.22 dollars per share in its third fiscal quarter in a jump in revenue by 18% over the previous year to 49.36 billion dollars. But it was the pink guidelines that really raised stocks in after-hours trading. Fourth-quarter revenue guidelines for each of the company’s three business segments – productivity, cloud and PC – exceeded analysts’ expectations of StreetAccount analysts.
Alphabet and Google CEO Sundar Pichai during a press conference at the Warsaw office in Poland on March 29, 2022.
Mateusz Wlodarczyk Nurfoto | Getty Images
Alphabet’s gaps in the first quarter were widespread, with earnings per share of $ 24.62 per share, total revenue of $ 68.01 billion and Google YouTube advertising revenue of $ 6.87 billion. In a bright spot, the so-called Other Bets, which include Waymo’s self-driving unit, nearly doubled revenue from a year ago to $ 440 million. However, the loss of the unit increased slightly. Alphabet said its board has authorized a $ 70 billion share repurchase.
3. Boeing results stumble; GM reaffirms the guidelines
Inscriptions are displayed on the headquarters building of Boeing Co. in Chicago, Illinois, USA, on Monday, April 27, 2009. Boeing Co. last week lowered its 2009 earnings forecast less than analysts’ forecasts, reaffirming the delivery schedule for the year, even as the recession forced airlines to postpone orders and forced the aircraft maker to postpone the model further.
Tim Boyle Bloomberg | Getty Images
On Wednesday, Boeing reported much wider adjusted losses and lower revenues than analysts had expected, as the company faced higher costs for both commercial and defense aircraft. Shares of Dow lost 3% on the preliminary market. Boeing is looking forward to a resurgence of demand for its 737 Max, which returned to service in late 2020 after two fatal crashes. But production problems and delays in certification have hampered other aircraft programs.
The GM logo is visible on the facade of the General Motors headquarters in Detroit, Michigan, March 16, 2021.
Rebecca Cook Reuters
Late Tuesday, General Motors reaffirmed its expectations for its 2022 earnings, although it reported lower net profit and margin for the first quarter than a year ago due to rising costs and supply chain instability. Shares of GM jumped nearly 2% on the preliminary market on Wednesday. The carmaker surpassed first-quarter earnings estimates of $ 2.09. However, GM missed out with quarterly revenue of $ 35.98 billion.
4. The $ 1 billion breakup fee goes both ways in the Twitter saga
In this photo illustration, the Twitter logo is displayed on the phone screen, and Elon Musk’s Twitter account is in the background. Twitter was flooded with user reports of high-profile accounts losing thousands of followers in the hours following the news that Tesla CEO Elon Musk will buy the social network.
Sheldon Cooper / SOPA Images | Lightrocket | Getty Images
Musk may be required to pay Twitter a $ 1 billion termination fee in some circumstances, such as if Tesla and SpaceX’s CEO fail to secure enough debt to complete its $ 44 billion purchase deal on social media, according to a new SEC submission. Twitter, on the other hand, will owe Musk a $ 1 billion fee if it fails because it finds a competitive bid or if shareholders reject the deal, according to the same statement.
5. Russia suspends natural gas supplies to Poland, Bulgaria
Gazprom workers on the Yamal Peninsula in Russia.
Bloomberg | Bloomberg | Getty Images
Russia’s natural gas supplies to Eastern Europe appear very precarious after state-owned Gazprom told Poland and Bulgaria it would suspend supplies. The move comes after both sides rejected Moscow’s recent request to pay for natural gas in rubles. This coincides with a sharp rise in tensions between the Western allies and Russia, as the war in Ukraine continues for three months. Gazprom said supplies would resume after payments in rubles.
– Sarah Min of CNBC, Hannah Miao, Tanaya Machel, Jordan Novet, Jennifer Elias, Leslie Josephs, Michael Wayland and Holly Elliott contributed to this report.
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