Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street to open higher after Nasdaq falls nearly 4%
Traders work on the floor of the New York Stock Exchange.
U.S. stock futures rebounded on Wednesday, benefiting from Microsoft’s nearly 4% pre-market jump in Dow shares after a better-than-expected quarterly earnings report after the closing bell on Tuesday. However, Alphabet, Google’s parent company, fell about 4% in Wednesday’s premarket, the morning after earnings were weak. Facebook parent company Meta Platforms and Ford are among many companies reporting their quarterly results after the closing bell on Wednesday.
- Tech stocks dragged Wall Street down sharply on Tuesday. The Nasdaq fell nearly 4%, its biggest single-session loss since September 2020. It sank further into bear market territory, as defined by a decline of 20% or more from its highs. the most recent. Tesla fell 12% on concerns over CEO Elon Musk’s deal to buy Twitter. Tesla shares rose slightly in premarket.
- The Dow Jones Industrial Average fell 809 points, or 2.4%, on Tuesday, just around a correction from its last record close.
- The S&P 500 fell 2.8%, falling further into correction territory, defined by a decline of 10% or more from recent highs.
- The benchmark 10-year Treasury yield rose on Wednesday but was below a recent high of more than 2.94%, a level not seen since late 2018.
2. Big profit beats at Microsoft, big misses at Alphabet
Microsoft Corp. CEO Satya Nadella speaks at Microsoft’s Build developer conference in San Francisco on March 30, 2016.
David Paul Morris | Bloomberg | Getty Images
Microsoft earned an adjusted $2.22 per share in its fiscal third quarter on an 18% jump in year-over-year revenue to $49.36 billion. But it was the bullish outlook that really drove the stock higher in after-hours trading. Fourth-quarter revenue forecasts for each of the company’s three business segments – productivity, cloud and personal computing – exceeded the expectations of analysts polled by StreetAccount.
CEO of Alphabet and Google Sundar Pichai during a press conference at the Chancellery in Warsaw, Poland, March 29, 2022.
Mateusz Wlodarczyk | Nurphoto | Getty Images
Alphabet’s first-quarter failures were widespread, with earnings per share of $24.62 per share, overall revenue of $68.01 billion and ad revenue for Google’s YouTube of $6.87 billions of dollars. 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 loss of the unit widened slightly. Alphabet said its board authorized $70 billion in share buybacks.
3. Boeing’s results stumble; GM reaffirms its guidelines
Signage is displayed on the Boeing Co. headquarters building in Chicago, Illinois, U.S., Monday, April 27, 2009. Boeing Co. last week lowered its 2009 earnings forecast less than analysts expected , reaffirming the year’s delivery schedule even as the recession prompts airlines to postpone orders and forces the aircraft maker to delay yet another model.
Tim Boyle | Bloomberg | Getty Images
Boeing on Wednesday reported a much larger adjusted loss and lower revenue than analysts had expected as the company faced higher costs on commercial and defense aircraft. Dow stock lost more than 4% in premarket. Boeing has seen an upsurge in demand for its 737 Max jet, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays have hampered other aircraft programs.
The GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, March 16, 2021.
Rebecca Cook | Reuters
General Motors on Tuesday evening reaffirmed its 2022 earnings expectations despite reporting lower net income and margin in the first quarter compared to a year ago due to rising costs and supply chain instability. GM shares edged higher in Wednesday’s premarket. The automaker beat estimates with first-quarter adjusted earnings per share 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, with Elon Musk’s Twitter account in the background. Twitter has been inundated with user reports of high-profile accounts losing thousands of followers in the hours after Tesla CEO Elon Musk announced his purchase of the network. social.
Images by Sheldon Cooper/SOPA | Light flare | Getty Images
Musk could be required to pay Twitter a $1 billion termination fee, in certain circumstances, such as if the CEO of Tesla and SpaceX fails to secure enough debt financing to complete his $44 billion deal to buy the social network, according to a new filing with the SEC. . On the other hand, Twitter would owe Musk a $1 billion severance fee if he failed because he found a competing bid or if shareholders rejected the deal, according to the same filing. Shares of Twitter fell about 1% in premarket.
5. Russia cuts off natural gas supplies to Poland and Bulgaria
Gazprom workers on the Yamal Peninsula in Russia.
Bloomberg | Bloomberg | Getty Images
Russian natural gas supply to Eastern Europe seem very uncertain after state-owned Gazprom announced to Poland and Bulgaria that it would stop deliveries. The move comes after both countries refused Moscow’s recent request to pay for natural gas in rubles. It also coincides with a sharp rise in tensions between Western allies and Russia as the war in Ukraine drags on into a third month. Gazprom said supplies would resume once ruble payments are made.
—CNBC Sarah Min, Hannah Miao, Tanaya Macheel, Jordan Novet, jennifer elias, Leslie Joseph, Michael Wayland and Holly Ellyatt contributed to this report.
— Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.