Dow futures shed 200 points, falling after Microsoft earnings

Boeing, News Corp, AT&T premarket the biggest moves in stocks

Some of the companies making headlines ahead of time are:

Boeing – Shares of Boeing fell about 1.7% premarket after the planemaker Posted revenue and earnings that missed expectations, despite a claim recovery. The company cited labor and supply shortages as the disappointing numbers.

news agency, Fox News – Shares of News Corp and Fox News rose 4.9% and 1.8%, respectively, after Rupert Murdoch. Abandoned the merger plan A proposal that both companies faced pushback from shareholders.

AT&T – Shares rose 1.8% after the telco’s fourth-quarter report on Wednesday showed an increase in subscribers but forecast annual profit below expectations.

Microsoft – Shares of Microsoft fell nearly 3% after the software giant shared a downbeat earnings forecast for the current quarter. Technology bellwether took first place Earnings expectations but new business growth slowed in December, including in its Azure division.

Click on Here Read more about today’s early market moves.

— Biya Singh

Amazon shares fall as Bernstein cuts price target

Amazon shares fell nearly 3% premarket amid a price target cut by analysts at Bernstein.

The company lowered its price target by $5 to $120 per share, a roughly 25% upside from Tuesday’s close.

“We’re comfortably above the Street on EBIT for 2023 because, not maybe, but because we’re tracking AWS’s outlook as MSFT… performed well this quarter, but guidance was weak.” analyst Nikhil Devnani said in a note to clients on Wednesday.

Meanwhile, Bank of America analyst Justin Post shared concerns about the company’s Amazon Web Services division heading into earnings. He cited Microsoft’s recent Azure guidance as an indicator of reducing cloud costs.

“We think it will take a few more quarters to digest high pandemic-era cloud spending, but with a large total addressable market and healthy innovation, industry growth will accelerate in 2024,” he said in a Tuesday note.

– Samantha Subin

AT&T Revenue Rises Ft

Shares of AT&T rose more than 2% before the bell despite posting mixed quarterly results.

The telecom giant beat earnings estimates by 4 cents per share, though revenue came in short of analysts’ expectations of $31.39 billion.

– Samantha Subin

Boeing declines due to revenue misses

Boeing shares fell as much as 4% before hours After fourth-quarter earnings fell short of estimates Both upstream and downstream amid labor and supply shortages.

The aircraft maker’s earnings were $1.75 per share on an unexpected loss of $19.98 billion. Analysts had expected earnings of 26 cents per share on revenue of $20.38 billion.

Despite the top and bottom line misses, Boeing generated free cash flow last year for the first time since 2018.

Boeing earnings slip

– Leslie Josephs, Samantha Subin

Mortgage interest rates fell for the third week in a row

Request for a weekly mortgage Rates rose last week as they fell For the third time in a row.

Total application volume increased by 7% last week In the previous weekAccording to the Mortgage Bankers Association seasonally adjusted index.

At the same time, rates fell to their lowest level since September, with the average contract interest rate for 30-year fixed-rate mortgages falling from 6.23% to 6.2%.

– Diana Olick, Samantha Subin

Intuitive surgery declines after earnings fail

Shares of Intuitive Surgery fell nearly 9% in the premarket after the company reported weaker-than-expected quarterly results.

Intuitive Surgical earned $1.23 per share on revenue of $1.66 billion. Analysts polled by Refinitiv expected earnings of $1.25 per share on revenue of $1.67 billion. The agency cited a resurgence of Covid cases in China, affecting practice levels in the region.

ISRG declines after income

Microsoft shares turn negative after after-hours gains

Microsoft shares fell about 1% in after-hours trading, reversing earlier gains.

Shares initially rose after the company posted quarterly earnings per share that beat Street expectations. However, investor sentiment soured after Microsoft released disappointing revenue guidance for the current quarter in its earnings conference call.

The company forecast fiscal third-quarter revenue of $50.5 billion to $51.5 billion, while analysts surveyed by Refinitiv expected $52.43 billion.

Read more about Here are the results from Microsoft.

Darla Mercado, Jordan Novette

Morgan Stanley’s Mike Wilson expects earnings to start rolling in on weaker consumers

Morgan Stanley’s Mike Wilson said investors should prepare for tough times ahead.

“The numbers are actually going to come down in Q4 in a way that we didn’t think would happen, and it didn’t, but right now, we think it’s happening,” Wilson said Tuesday on CNBC’s “Closing Bell: Overtime.” ”

The investment strategist said he expects returns to start rolling in as companies deal with weakening consumers.

However, if he doesn’t see a “more meaningful” downside in the next three to four months or by April, he is open to changing his view.

“We will pull back our call because we are still in a somewhat financial repression world, and bonds are not a good alternative in the long term, and stocks are the only game in town. In an inflationary environment,” he said. “We’re not ready to make that call today because we believe in risk-reward.”

– Sarah Min

Microsoft shares rise after earnings results show slowdown in cloud

Microsoft shares posted gains of more than 4% in after-hours trading after its quarterly results topped estimates on both the top and bottom lines. A stronger-than-expected report was driven Strong growth in its cloud unit.

Revenue at Microsoft’s Intelligent Cloud division rose 18% to $21.51 billion. Meanwhile, sales of Azure and other cloud services, which Microsoft did not report in dollars, rose 31%.

– Yun Li

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