Stock futures for the S&P 500, Nasdaq 100, and Dow Jones Industrial Average are showing losses as investors evaluate a broad range of earnings reports. Ford Motor (F) and McDonald's (MCD, Financial) reported earnings that led to negative reactions, affecting early trading sentiment.
Mega cap stocks are experiencing pre-market declines, adding to the downward trend. Additionally, rising market rates are influencing the market. The 10-year yield has increased to 4.30%, while the 2-year yield has risen to 4.15%.
Today's economic updates include:
- 9:00 ET: August FHFA Housing Price Index and August S&P Case-Shiller Home Price Index
- 10:00 ET: October Consumer Confidence and September job openings
Ford Motor (F) posted a small earnings beat and projected FY24 adjusted EBIT of about $10 billion, with significant contributions from China and its exports.
McDonald's (MCD, Financial) slightly surpassed earnings expectations with inline revenue reports.
Pfizer (PFE, Financial) had a strong earnings report, beating expectations and raising FY24 EPS and revenue guidance.
Cadence Design (CDNS, Financial) reported earnings above expectations and provided guidance in line with forecasts.
Boeing (BA, Financial) has increased its offerings of common stock and depositary shares.
V.F. Corp (VFC, Financial) reported better-than-expected earnings and revenue, but its guidance for Q3 revenue fell short of consensus expectations.
Today's News
SoFi Technologies (SOFI, Financial) experienced a 3.3% boost in premarket trading after reporting its strongest quarter yet, with Q3 revenue and earnings surpassing analyst expectations. The company raised its full-year guidance for GAAP EPS to $0.11-$0.12 and adjusted net revenue to $2.535B-$2.550B. It also projects 2024 adjusted EBITDA to be between $640M and $645M, exceeding prior forecasts. SoFi's Q3 GAAP EPS came in at $0.05, exceeding the consensus estimate, and its adjusted net revenue was $689.4M, significantly higher than expected.
PayPal Holdings (PYPL, Financial) saw its stock dip 2.1% in premarket trading following a Q3 revenue miss, despite beating non-GAAP EPS expectations. The company reported Q3 non-GAAP EPS of $1.20, surpassing the consensus by $0.13, but its revenue of $7.8B fell short by $90M. Looking ahead, PayPal anticipates a decrease in Q4 non-GAAP EPS in low- to mid-single digits, with GAAP EPS expected to range from $1.03 to $1.07.
Pfizer (PFE, Financial) shares rose in premarket trading after the pharma giant exceeded Street forecasts with its Q3 results and raised its full-year outlook. The company reported $17.7B in revenue, driven by strong sales of its COVID-19 products, including the Comirnaty vaccine and Paxlovid antiviral. Pfizer increased its full-year revenue guidance to $61.0B-$64.0B and adjusted EPS guidance to $2.75-$2.95, reflecting robust demand and the impact of its Seagen acquisition.
McDonald's (MCD, Financial) shares dropped 2.7% after reporting softer-than-expected global sales in its Q3 earnings report. The company's global comparable sales fell by 1.5%, missing analysts' expectations, although U.S. sales showed slight improvement. The International Operated Markets and International Developmental Licensed Markets segments both reported declines, influenced by weaker performance in regions such as France and the U.K.
Boeing (BA, Financial) faced a 2.6% decline in premarket trading after announcing plans to raise $21 billion through public offerings, exceeding its initial target. The aviation company is navigating multiple challenges, including a labor strike, and intends to use the proceeds for general corporate purposes, including debt management and operational funding until plane deliveries resume.
Crocs (CROX, Financial) experienced a significant drop of 10.33% in premarket action after issuing cautious Q4 guidance, despite beating Q3 earnings estimates. The company expressed concerns about its HEYDUDE brand's performance, indicating that it will take longer than anticipated to achieve a turnaround, leading to a reset of its full-year outlook.
Alphabet (GOOG, GOOGL) is set to report earnings, kicking off a week of major tech earnings that could significantly impact the market. Following Alphabet, Meta (META, Financial) and Microsoft (MSFT, Financial) are scheduled to release their results on Wednesday, with Amazon (AMZN, Financial) and Apple (AAPL, Financial) following on Thursday. These companies, part of the Magnificent 7, are expected to be key contributors to S&P 500 earnings growth for Q3.
GuruFocus Stock Analysis
- Oil Prices Fall 6% as Middle East Tensions Ease by Faizan Farooque
- Boeing Plans $15 Billion Capital Raise Amid Machinist Strike by Faizan Farooque
- Yen Drops to Three-Month Low Following Japan Election Results by Faizan Farooque
- Holiday Sales Projected to Rise 3.3%, Below Long-Term Average, Wells Fargo Says by Faizan Farooque
- Philips Slides After Guidance Cut as China Demand Deteriorates by Faizan Farooque
