The Dow is looking to extend yesterday's modest bounce
Futures on the Dow Jones Industrial Average (DJIA) are eyeing a 200-point pop this morning, looking to extend yesterday's modest bounce on the heels of strong earnings reports from Merck (MRK) and McDonald's (MCD). S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also pointed firmly higher, as they enjoy earnings tailwinds of their own as Meta Platforms (FB) leads the tech sector. Investors are also unpacking a surprise decline in the U.S. gross domestic product (GDP), which fell 1.4% in the first quarter, while initial jobless claims fell to 180,000 last week, meeting analysts' expectations.
Continue reading for more on today's market, including:
- Now's the time to bet on this chip stock's pullback.
- Kraft Heinz stock brushed off a strong sales forecast.
- Plus, Southwest Airlines takes off; Meta's daily active users bounce back; and unpacking McDonald's top- and bottom-line win.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1 million call contracts traded on Wednesday, and 718,778 contracts. The single-session equity put/call ratio fell to 0.68, and the 21-day moving average stayed at 0.58.
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Southwest Airlines Co (NYSE:LUV) is up 3.2% ahead of the bell, despite the company reporting worse-than-anticipated first-quarter losses, and revenue that was slightly above expectations. What's boosting the airline is its
strong outlook, with an 8% to 12% revenue jump predicted for the second quarter, in comparison to the same period in 2019. Year-to-date, LUV is up 7.2%.
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Meta Platforms Inc (NASDAQ:FB) is surging before the open, last seen up 14.7%. The social media concern is brushing off a revenue miss, after reporting first-quarter profits that beat expectations, following a strong bounce in its daily active users from last quarter's
first-ever decline. Over the last nine months, however, FB has shed 53.1%.
- The shares of McDonald's Corp (NYSE:MCD) are up 1.2% in the premarket, after the fast food name posted a first-quarter earnings and revenue beat. The company noted a 3.5% rise in same-store sales growth within the U.S., while international markets saw even higher jumps. Year-over-year, MCD maintains a 5.2% lead.
- There are no other economic indicators of note due out today.
Asian Markets Pop After Monetary Policy Announcement
Stocks in Asia popped today, led by the Nikkei in Japan, which added 1.8% after the Bank of Japan (BoJ) announced plans to stick to its current monetary policy, as expected. The announcement, however, pushed the Japanese yen down more than 1% to 130.25 per U.S. dollar. Elsewhere, the Hong Kong Hang Seng and China’s Shanghai Composite added 1.7% and 0.6%, respectively, after Chinese President Xi Jinping pleaded for an “all-out” effort to construct infrastructure as the country continues to face its worst Covid-19 outbreak since the onset of the pandemic. Lastly, South Korea’s Kospi tacked on 1.1%.
The major bourses in Europe are notably higher too, as traders digest a fresh batch of corporate earnings reports. Additionally, investors continue to monitor developments in Ukraine and energy questions the conflict poses, especially after Russia halted gas supplies to Poland and Bulgaria yesterday. At last check, London's FTSE 100 is up 1.1%, while the French CAC 40 and the German DAX are each 1.6% higher.