BY THE NUMBERS
U.S. stock futures bounced Wednesday, getting a boost from Dow stock Microsoft's (MSFT) more than 5% premarket jump following a better-than-expected quarterly earnings report after the closing bell Tuesday. However, Google parent Alphabet (GOOGL) dropped 2.5% in Wednesday's premarket, the morning after weak earnings. Facebook parent Meta Platforms (FB) and Ford (F) are among the many companies releasing quarterly results after the closing bell Wednesday. (CNBC)
Tech stocks led Wall Street sharply lower Tuesday. The Nasdaq lost nearly 4%, its biggest single-session loss since September 2020. It sank further into bear market territory, as defined by a drop of 20% or more from its most recent highs. Tesla (TSLA) tumbled 12% on concerns about CEO Elon Musk's deal to buy Twitter (TWTR). Tesla shares did recover, up nearly 2.5% in the premarket. (CNBC)
The Dow on Tuesday fell 809 points, or 2.4%, right around a correction from its latest record close. The S&P 500 dropped 2.8%, falling further into correction territory, as defined by a decline of 10% or greater from recent highs. The benchmark 10-year Treasury yield ticked higher Wednesday but was below a recent high over 2.94%, a level not seen since late 2018. (CNBC)
* Adjustable-rate mortgage demand doubles as rates hit highest since 2009 (CNBC)
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Microsoft earned an adjusted $2.22 per share in its fiscal third quarter on an 18% year-over-year revenue jump to $49.36 billion. But it was the rosy guidance that really got the stock going higher in after-hours trading. Fiscal fourth-quarter revenue guidance for each of the company's three business segments — productivity, cloud and personal computing — surpassed the expectations of analysts surveyed by StreetAccount.
Alphabet's first-quarter misses were widespread, with earnings per share of $24.62 per share, overall revenue of $68.01 billion and advertising revenue for Google's YouTube of $6.87 billion. In a bright spot, so-called Other Bets, which include self-driving car unit Waymo, nearly doubled its revenue from a year ago to $440 million. However, the unit's loss widened slightly. Alphabet said its board authorized $70 billion in share repurchases.
* Investing Club: Alphabet's misses don't shake our long view on the stock
* Investing Club: Microsoft's great quarter provides a good test for this market
Boeing (BA) on Wednesday reported a much wider adjusted loss and lower revenue than analysts had expected as the company faced higher costs on both commercial and defense aircraft. The Dow stock lost 3% in the premarket. Boeing has enjoyed a resurgence in demand for its 737 Max plane, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays have hampered other aircraft programs. (CNBC)
General Motors (GM) late Tuesday reaffirmed its earnings expectations for 2022 despite reporting a lower first-quarter net profit and margin compared with a year ago on rising costs and supply chain instability. GM shares jumped nearly 2% in Wednesday's premarket. The automaker beat estimates with Q1 adjusted per share earnings of $2.09. However, GM missed with quarterly revenue of $35.98 billion. (CNBC)
* GM will start tying executive compensation to EV targets (CNBC Pro)
* Lucid gets order from Saudi government for up to 100,000 EVs (CNBC)
Musk could be required to pay Twitter a termination fee of $1 billion, under some circumstances, such as if the Tesla and SpaceX CEO fails to secure enough debt funding to complete his $44 billion deal to buy the social network, according to a new SEC filing. On the other hand, Twitter would owe Musk a $1 billion break-up fee should it fall through because it found a competing offer or if shareholders reject the deal, according to the same filing. (CNBC)
* SpaceX launches 7th astronaut mission in less than 2 years (CNBC)
Russia's natural gas supplies to Eastern Europe are looking highly uncertain after the country's state-run Gazprom told Poland and Bulgaria that it would halt deliveries. The move comes after both countries refused Moscow's recent demand to pay for natural gas in rubles. Gazprom said supplies would resume once the ruble payments were made. (CNBC)
Archegos Capital Management owner Bill Hwang and former CFO Patrick Halligan were arrested Wednesday in connection with the implosion of the family office last year. Hwang and Halligan are expected to appear in Manhattan federal court later in the day. (CNBC)
Pfizer (PFE) and BioNTech (BNTX) are asking the FDA to authorize a third dose of their Covid vaccine for children ages 5 to 11. The application comes after Pfizer released promising data earlier this month from a small lab study of blood samples from 30 kids in the age group. (CNBC)
* Trump's coronavirus task force had a resignation pact, Dr. Birx says (USA Today)
Walmart (WMT) on Wednesday said it'll offer deeper discounts on fuel to get more customers to join and renew its subscription service Walmart+. With inflation at a four-decade high and gas prices soaring, Walmart is flexing its low prices as a competitive advantage. (CNBC)
Chipotle Mexican Grill's (CMG) quarterly earnings and revenue topped estimates. Restaurant operating margins shrank as the company paid more for beef, avocados, paper and labor. Menu price hikes and lower delivery costs helped offset those higher costs. Shares of rose about 3% in the premarket. (CNBC)
* Chipotle staffing back at pre-pandemic levels, explores automation (CNBC)
Retail brokerage firm Robinhood (HOOD) is cutting back staffing levels, citing "duplicate roles and job functions" after rapid expansion last year. CEO Vlad Tenev made the announcement in a blog post on Tuesday afternoon. Shares fell roughly 4% in Wednesday's premarket. (CNBC)
STOCKS TO WATCH
Enphase Energy (ENPH) jumped more than 8% during premarket trading following the company's first-quarter results. Enphase reported record revenue, and exceeded analyst expectations on the both the top and bottom line. The company said Europe will be a key growth area looking forward as Russia's invasion of Ukraine sends power prices soaring.
Juniper Networks (JNPR) declined 6.1% after reporting first quarter earnings that came in slightly lower than analysts' estimates. Management said on the company earnings call that ongoing supply chain challenges have resulted in extended lead times and elevated logistics and component costs.
Edwards Lifesciences (EW) fell 3.6% despite reporting a revenue beat for the first quarter, as the company issued weak revenue guidance for the current quarter.
Visa (V) surged 5.5% premarket following a beat on the top and bottom lines in the previous quarter, as it anticipates travel recovery will bring continued growth. The payments firm reported adjusted earnings per share of $1.79 on revenues of $7.19 billion. Analysts expected $1.65 adjusted earnings per share and $6.83 billion in revenue, according to Refinitiv.
Texas Instruments (TXN) fell 2.9% after the tech company issued weak earnings and revenue guidance for the current quarter and said it expects reduced demand from Covid restrictions in China.
Harley-Davidson (HOG) shed 1.4% after the company reported earnings for the previous quarter that were in line with analysts' estimates, at $1.45 per share, according to Refinitiv. It's quarterly revenue also slightly missed estimates, at $1.30 billion versus $1.31 billion.
Capital One (COF) lost 5.4% in early trading despite the company beating earnings and revenue estimates for its most recent quarter. The company's results included a pre-tax impact of $192 million from gains on partnership card portfolios and lower-than-expected net interest margins.