U.S. stock futures climbed early Thursday, buoyed by strong earnings reports from two of the "Magnificent 7" companies after Wednesday's market close.
While markets were rattled by the Commerce Department's report of a 0.3% GDP contraction, major indexes rebounded and ended the previous session in positive territory.
Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) both topped earnings and revenue expectations, rising 6.63% and 7.40% in pre-market trading, respectively.
Meanwhile, Tesla Inc. (NASDAQ:TSLA) slipped 0.54% in pre-market trading amid unverified rumors that the board was searching for a replacement for CEO Elon Musk -- claims the company has since dismissed as false.
On Thursday, investors will be closely watching the earnings of Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Mastercard Inc. (NYSE:MA), and Airbnb Inc. (NASDAQ:ABNB), with high expectations following a series of strong performances over the past couple of days.
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U.S. 10-Year Treasuries are at 4.15%, while the 2-Year Treasuries are at 3.60%. The CME Group's FedWatch tool shows the markets pricing a 95% likelihood of interest rates remaining unchanged during the FOMC meeting that is scheduled to take place the first week of May, which marks an increase from 92.4% on Wednesday.
| Futures | Change (+/-) |
| Dow Jones | 0.83% |
| S&P 500 | 1.30% |
| Nasdaq 100 | 1.78% |
| Russell 2000 | 0.46% |
The SPDR S&P 500 Trust ETF (NYSE:SPY) was up 0.04% on Monday, while the Invesco QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq-100 Index, was down 0.013%, according to Benzinga Pro data.
Cues From Last Session:
Wednesday was a mixed bag for S&P 500 sectors, with healthcare, industrials, and consumer staples posting good gains, while the energy segment dropped 2.70% on dropping crude oil prices and growing concerns of a recession following the latest GDP figures.
The Dow Jones Industrial Average was up 0.35% during the day, while the Nasdaq Composite Index was down marginally, by 0.086%.
The markets were rattled by disappointing economic data during the session, particularly the GDP figures at -0.3%, down from 2.4% last year, and against a consensus estimate of 0.4%. Besides this, the Personal Consumption Expenditures (PCE) index came in at 2.3%, ahead of estimates at 2.2%, thwarting any possibility of a rate cut in May.
As of Tuesday, the Nasdaq 100 index was down 11.93% from its previous high of 22,222.61 points. The S&P 500 index was 9.40% lower, as compared to the last record high of 6,147.43 points. On the other hand, Dow Jones was down 9.77% from its 52-week high of 45,073.63 points.
The Dow Jones index jumped 141 points or 0.35% to 40,669.36, whereas the S&P 500 index surged 0.15% to 5,569.06. Nasdaq Composite ended 0.086% lower at 17,446.34, and the small-cap gauge, Russell 2000, was down 0.63%, trading at 1,964.12.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.086% | 17,446.34 |
| S&P 500 | 0.15% | 5,569.06 |
| Dow Jones | 0.35% | 40,669.36 |
| Russell 2000 | -0.63% | 1,964.12 |
Insights From Analysts:
Ryan Detrick, a Chartered Market Technician, posted on X that markets shouldn’t be overly worried about the first-quarter GDP contraction, attributing the decline to companies front-loading imports to get ahead of upcoming tariffs.
Detrick notes that final demand has slowed, but is still “fairly solid.” The “Bottom Line,” he says, is that the economy slowed ahead of the tariffs, but this isn’t a recession.
Upcoming Economic Data:
Here’s what investors will be watching on Thursday:
- The Initial Jobless Claims Report is set to be released by 8:30 AM ET.
- The S&P Final U.S. Manufacturing PMI for April will be released at 9:45 AM ET.
- ISM Manufacturing and Construction Spending for April and March, respectively, will be released by 10:00 AM ET.
- April Auto Sales figures will be announced during the day, with no time specified.
Stocks In Focus:
- Apple Inc. (NASDAQ:AAPL) will be announcing its second quarter results after markets close. The stock is down 1.10% pre-market, with analysts expecting the company to post $1.62 per share in earnings, from $94.6 billion in revenue.
- Amazon.com Inc. (NASDAQ:AMZN) is up 4.01% pre-market, as the company is expected to release its first quarter results on Thursday, after markets close. Analysts expect earnings at $1.36 per share, from $155.1 billion in revenue.
- Eli Lilly And Co. (NYSE:LLY) is up 1.95% pre-market as investors wait in anticipation of the company’s first quarter results in the morning. Consensus estimates expect $3.46 per share in earnings, on $12.7 billion in revenue.
- Mastercard Inc. (NYSE:MA) will be releasing its first quarter results in a couple of hours, before markets open. The stock is up 0.31% pre-market, and analysts expect the company to post $3.56 per share in earnings, from $7.1 billion in revenue.
- McDonald’s Corp. (NYSE:MCD) will be announcing its first quarter results before markets open, with analysts expecting $2.67 per share in earnings, on $6.12 billion in revenue. The stock is down 1.51% pre-market.
Commodities, Gold, And Global Equity Markets:
Crude oil futures continue to touch new lows, with the commodity down 2.31% in the early New York session, trading at $56.91 per barrel, amid growing recession fears.
Gold Spot US Dollar is down yet again, by 2.56%, hovering around 3,223.74 per ounce, down from its record high of $3,500.33 per ounce last week. The U.S. Dollar Index is up 0.39%, trading at the 99.8543 level.
Asian markets are mixed on Thursday, with Japan’s Nikkei, India’s Nifty 50, and the Hang Seng Index ending the day in the green, while South Korea’s KOSPI and China’s Shanghai index are down for the day. Australia’s ASX 200 is up, along with New Zealand’s NZX 50.
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