The Dow is set for a lower open after 3M's earnings
Dow Jones Industrial Average (DJI) futures are signaling a lower start following Post-it parent 3M's (MMM) shocking earnings report -- which has the blue-chip stock down 8% in electronic trading. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are trading above fair value on a positive earnings reaction for Facebook (FB), with the FAANG stock up 8.6% ahead of the bell on a first-quarter adjusted profit and revenue beat.
Traders are also eyeing some economic data this morning, with durable goods jumping a much larger-than-expected 2.7% in March, while weekly jobless claims rose to their highest level in over two months last week. And oil prices are bouncing back from Wednesday's dip, with June-dated crude up 0.3% at $66.09 per barrel.
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5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1 million call contracts traded on Wednesday, compared to 596,515 put contracts. The single-session equity put/call ratio rose to 0.60, while the 21-day moving average remained at 0.61.
- In addition to reporting lower-than-expected first-quarter adjusted earnings and revenue, 3M Co (NYSE:MMM) cut its 2019 profit forecast. The consumer products giant also said it's restructuring, and will cut 2,000 jobs globally. After tagging an annual high of $219.74 yesterday, MMM stock is down 8.3% ahead of the bell, set to test the round $200 mark, home to its 120-day moving average, for the first time since early March.
- Microsoft Corporation (NASDAQ:MSFT) reported stronger-than-anticipated fiscal third-quarter profit and revenue, thanks to strong Windows revenue and cloud growth. A wave of price-target hikes has come through, too, including one to $155 from $150 at Wedbush. In reaction, MSFT stock is up 5.3% in pre-market trading, set to open at a record high of $131.46 per share -- and become the newest member of the $1 trillion market cap club.
- Tesla Inc (NASDAQ:TSLA) reported an adjusted loss of $1.77 per share in the first quarter, more than analysts were expecting, while CEO Elon Musk suggested "It's probably about the right time" to raise capital after the electric car concern said it ended the quarter with $2.2 billion in cash. A downgrade to "neutral" from "underperform" at Wedbush is increasing pressure, with TSLA stock down 1.5% ahead of the bell.
- Weekly jobless claims, durable goods orders, the Kansas City Fed manufacturing index, and the Fed's balance sheet are scheduled. Intel (INTC), Amazon (AMZN), AbbVie (ABBV), Bristol-Meyers (BMY), Cleveland-Cliffs (CLF), Comcast (CMCSA), GrubHub (GRUB), Mattel (MAT), Southwest Airlines (LUV), Starbucks (SBUX), United Parcel Service (UPS), and World Wrestling Entertainment (WWE) will report earnings.
Asian Stocks React to Dismal GDP Data from South Korea
Asian markets were mostly lower today, after South Korea's economy unexpectedly contracted during the first quarter -- resulting in the country's worst gross domestic product (GDP) reading since 2008. China’s Shanghai Composite was down 2.4%, Hong Kong’s Hang Seng lost 0.9%, and South Korea’s Kospi fell 0.5%. Meanwhile, Japan’s Nikkei was up 0.5% after the Bank of Japan stood pat on monetary policy.
Europe is in the red at midday, with investors eyeing post-earnings losses from the likes of Barclays and Nokia. London’s FTSE 100 is 0.6% lower, the French CAC 40 has suffered a 0.2% loss, and the German DAX has taken a 0.1% blow, after merger talks between finance giants Deutsche Bank and Commerzbank crumpled.