A Peek Into The Markets: US Stock Futures Rise; Apple Tops Q2 Estimates

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after Apple Inc. AAPL reported better-than-expected quarterly results. Investors are awaiting earnings results from Caterpillar Inc. CAT, Mcdonald's Corp MCD, Mastercard Inc MA, Bristol-Myers Squibb Co BMY and Amazon.com, Inc. AMZN.

Data on Gross Domestic Product for the first quarter will be released at 8:30 a.m. ET. Analysts expect Q1 GDP to accelerate to 6.5% annual growth from a growth rate of 4.3% in the fourth quarter. Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET, while the pending home sales index for March is scheduled for release at 10:00 a.m. ET. Federal Reserve Governor Randal Quarles is set to speak at 11:00 a.m. ET, while Federal Reserve Bank of New York President John Williams will speak at 2:00 p.m. ET.

Futures for the Dow Jones Industrial Average jumped 132 points to 33,856.00 while the Standard & Poor’s 500 index futures rose 26.75 points at 4,203.00. Futures for the Nasdaq 100 index climbed 130.25 points to 14,022.50.

See also: How To Buy Apple Stock

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 32,230,010 with around 574,320 deaths. India reported a total of at least 18,376,420 confirmed cases, while Brazil confirmed over 14,521,280 cases.

Oil prices traded higher as Brent crude futures rose 0.8% to trade at $67.29 per barrel, while US WTI crude futures rose 0.8% to trade at $64.35 a barrel. US crude oil inventories rose 100,000 barrels last week, the Energy Information Administration said Wednesday. The Energy Information Administration’s weekly report on natural gas stocks in underground storage will be released at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mostly higher today. The Spanish Ibex Index rose 0.4% and STOXX Europe 600 Index gained 0.5%. The French CAC 40 Index climbed 0.6%, German DAX 30 fell 0.2% while London's FTSE 100 rose 0.7%. UK car production surged 46.6% year-over-year to 115,498 units in March. Annual inflation rate in Spain increased to 2.2% in April from 1.3% in the prior month, while unemployment rate dropped to 15.98% in the first quarter from 16.13%. Import prices in Germany increased 6.9% year-over-year in March, while unemployment rate came in unchanged at 4.5% in March.

Asian markets traded higher today. Japan’s Nikkei 225 rose 0.21%, China’s Shanghai Composite rose 0.52% and Hong Kong’s Hang Seng Index rose 0.8%. Australia’s S&P/ASX 200 rose 0.3%, while India’s BSE Sensex rose 0.2%. Australia's import prices rose 0.2% quarter-on-quarter for the first quarter, while export prices surged 11.2%.

Broker Recommendation

Keybanc maintained Facebook, Inc. FB with an Overweight and raised the price target from $360 to $414..

Facebook shares rose 7.1% to $329.00 in pre-market trading.

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Breaking News

  • Apple Inc AAPL reported stronger-than-expected results for its fiscal-year 2021 second quarter. iPhone revenue rose 65% year-over-year last quarter. Apple's board announced a 7% increase in cash dividend to 22 cents per share and also authorized a $90 billion increase to its existing share repurchase program.
  • Facebook, Inc. FB reported upbeat results for its first quarter on Wednesday. The company reported 1.88 billion daily active users, up 8% year-over-year, as well as 2.85 billion monthly active users, up 10% year-over-year.
  • QUALCOMM Incorporated QCOM reported better-than-expected results for its second quarter and issued strong Q3 earnings guidance.
  • Ford Motor Company F reported better-than-expected earnings for its first quarter, but warned that the semiconductor chip shortage will reduce production by 50% in the second quarter.

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Posted In: A Peek Into The MarketsEarningsNewsEurozoneFuturesGlobalPre-Market OutlookMarkets