US pre-market index futures edged higher ahead of Tuesday’s open, following record highs on Wall Street, as investors prepped for another wave of corporate profits that could cement the case for a much stronger-than-expected first quarter earnings season and further gains for domestic equity markets.
Several blue-chip US companies topped earnings expectations on Tuesday, with many of the same names issuing improved profit guidance for the months ahead, helping lift the S&P 500 to an all-time as investors cheered both the strength of corporate America and the broader domestic economy.
The S&P 500 ended the celebratory session up +0.90% higher, led by its best performing sectors; Healthcare (+1.5%), Consumer Discretionary (+1.2%), Real Estate (+1.2%) and Technology (+1.1%).
It was a similar story for the Nasdaq Composite, up +1.27%, a level that took the index further into new all-time-highs, above its previous peak close from August last year.
Ahead, in today’s economic calendar; weekly Crude Oil Inventories are scheduled for release at 10:30am EST.
In corporate news; Boeing (BA), Caterpillar (CAT), AT&T (T), Visa (V), Microsoft (MSFT), Facebook (FB) and Tesla (TSLA) are amongst the long list of major companies scheduled to report their financials today.
TODAY’S TOP HEADLINES:
Real Estate & Economy: Weekly mortgage applications fall as the highest rates in a month are spooking spring buyers. (CNBC) Home-buyers had been brushing off the slight rise in rates during recent weeks, but as those rates move even higher, purchasers are now pulling back. Overall mortgage application volume fell 7.3% last week from the previous week, but it was 6.6% higher than a year ago, thanks to stronger refinance volume.
ECONOMIC CALENDAR: Today’s Economical Announcements.
10:30AM – ★★★ – Crude Oil Inventories (Previous: -1.396M)
STOCKS IN THE SPOTLIGHT: Pre-Market Movers & News Related Stocks.
iRobot (IRBT): [EARNINGS] Posted first quarter profit of 78 cents, beating the 60 cents a share consensus estimate. Revenue fall short of forecasts, however, posting sales of $237.7 million compared to a consensus forecast of $251.4 million. iRobot did raise its full year earnings forecast.
Anadarko Petroleum (APC): [NEWS] Occidental Petroleum is offering $76 per share for Anadarko, topping the deal that Chevron has in place to buy Anadarko.
Stanley Black & Decker (SWK): [EARNINGS] Earned an adjusted $1.42 per share for the first quarter, beating the consensus estimate of $1.42 a share. Revenue also beat forecasts and the company raised its full-year adjusted profit forecast to $8.50 to $8.70 per share, compared to an $8.52 consensus estimate.
Caterpillar (CAT): [EARNINGS] Reported adjusted quarterly profit of $2.94 per share, beating estimates by 9 cents a share, with the heavy equipment maker’s revenue also topping forecasts.
Snap (SNAP): [EARNINGS] Lost 10 cents per share for its latest quarter, smaller than the 12 cents a share loss expected by Wall Street. Revenue came in above estimates, and Snap said its advertisements are reaching more 13- to 24-year-olds than ones on Facebook’s Instagram service.
PG&E (PCG): [NEWS] PG&E received court approval to pay workers up to $350 million in bonuses as incentives to help the California utility meet its safety goals. Separately, Berkshire Hathaway is not buying PG&E.
Boeing (BA): [EARNINGS] Earned an adjusted $3.16 per share for the first quarter, matching estimates, with revenue slightly below forecast. Boeing is pulling its 2019 guidance and suspending its share repurchase program due to uncertainty surrounding the grounding of its 737 MAX aircraft.
Texas Instruments (TXN): [EARNINGS] Reported quarterly profit of $1.26 per share, 13 cents a share above estimates. Revenue also came in above Wall Street forecasts, however the company warned that a slowdown in microchip demand may last for a few more quarters.
CBS (CBS): [NEWS] CBS suspended its search for a new chief executive officer, instead extending the term of acting CEO Joe Ianniello through the end of the year.
Lululemon (LULU): [NEWS] CEO Calvin McDonald told The Wall Street Journal that the apparel maker has no plans to cut prices, despite the proliferation of copycat products hitting the marketplace.
AT&T (T): [EARNINGS] Reported earnings of 86 cents per share for the first quarter, matching forecasts, but revenue came in below estimates. AT&T reported a surprise increase in wireless customers, and also said it would pay off 75% of the debt incurred in its Time Warner deal by the end of the year.
Anthem (ANTM): [EARNINGS] Beat estimates by 22 cents a share, with adjusted quarterly profit of $6.03 per share. Revenue also topped forecasts, helped by strong membership growth, and Anthem also raised its full-year forecast.
Kraft Heinz (KHC): [NEWS] Kraft Heinz is weighing the sale of its Ore-Ida frozen potato brand, maker of Tater Tots, according to people familiar with the situation.
EBay (EBAY): [EARNINGS] Came in 4 cents a share above estimates with adjusted quarterly profit of 67 cents per share. Revenue was also above forecasts and EBay raised its profit and revenue outlook for the full-year, amid a rise in active buyers.
Tesla (TSLA): [NEWS] Tesla will bring back lower priced versions of its Model S and Model X cars, reversing plans to phase them out.
Rite Aid (RAD): [NEWS] The drugstore chain plans to increase its minimum age for buying tobacco products to 21 from 18, matching a move made by rival Walgreens.
Best Buy (BBY): [UPGRADE] Upgraded to “buy” from “hold” at Jefferies, which points to optimism regarding the electronics retailer’s expansion of services.
MOMENTUM STOCKS:
GAINERS: TWTR, HAS, KSS, DGX, WAL, FNB, CE, GPK, CIT, OKTA DECLINERS: STT, ALB, PG
TODAY’S IPOs:
None.