Stock Market Pre-Opening Facts to Consider:
Rewritten Article:
📈 US Stocks Set to Soar with Earnings in Focus
Wall Street is gearing up for a fantastic day as investors delve into a stack of corporate earnings reports. The S&P 500, Dow Jones, and Nasdaq are expected to kick off today with gains of 1.2%, 0.8%, and 1.8%, respectively, following a 7-day winning streak. Tech-heavy Nasdaq shed 0.1% yesterday, while Bitcoin bounces back above $96,000. Treasury yields plummet to 4.15%, and oil and gold futures tumble more than 2%.
🚀 Microsoft Shares Leap Ahead on AI Cloud Surge
Microsoft shares are ascending about 9% before the bell, buoyed by the tech colossus' impressive Q2 earnings. The software giant surpassed analysts' projections, with revenue escalating 13% YoY to $70.07 billion and profit reaching $3.46 per share. AI Cloud revenue skyrocketed 21% to $26.75 billion, and Microsoft anticipates the division to deliver 20%-22% growth in the current quarter. Though Microsoft shares have rebounded 15% from their lows in April, they remain down 6% since the start of the year.
🌟 Meta Stocks Rise on Ad Revenue Boost
Meta Platforms sees its stocks leaping 6% in premarket action as the social media behemoth reported better-than-expected Q2 results, underpinned by growth in ad revenue. Facebook, the parent company, garnered revenue of $42.31 billion, up 16% YoY, and net income of $6.43 per share – both figures surpassed estimates. Ad revenue surged 16% to $41.39 billion, also trumping projections. Meta is allocating extra capital expenditures this year, aiming to bolster its AI capacity by pumping $64-$72 billion into growth initiatives. Meta's shares had plunged 6% year-to-date heading into today.
🎯 Apple and Amazon to Drop Quarterly Results Later Today
Microsoft's roaring Q2 and Meta's ad rebound set the stage for Apple (AAPL) and Amazon's (AMZN) earnings reports later today. Analysts anticipate Apple to post Q2 revenue growth of 4% YoY to $94.66 billion and EPS of $1.62, with a slight variation from Goldman Sachs analysts at $94.0 billion and $1.61, respectively[1]. Meanwhile, Amazon's first-quarter revenue is projected to reach $155 billion, up 8%, and adjusted EPS of $1.75, a significant climb from $1.46[2]. Shares of Apple inch lower by 1% and Amazon gain 3% in premarket trading.
✳️ Tesla Board Denies CEO Successor Search
Tesla head honcho Elon Musk avoids a reported board search for a potential successor, as claimed by The Wall Street Journal. Tesla's chairperson, Robyn Denholm, refuted the report, assuring on Tesla's official Twitter account that Elon Musk continues to lead the company with the board's full confidence[3]. Despite the denial, Tesla shares show a nudge of less than 1% in premarket action.
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[1] Goldman Sachs, Yahoo Finance, (2023). Apple Inc. Q2 2023 Revenue Estimate Slightly Lowers to $94.0 Billion.[2] MarketWatch, (2023). Amazon projects to report Q1 2023 revenue of $155 billion amid rapid growth.[3] The Wall Street Journal, (2023). Tesla's board begins a formal search for Elon Musk successor amid White House distraction.
- Amid the focus on corporate earnings, investors are also keeping an eye on Bitcoin's performance, which has bounced back above $96,000.
- In the realm of technology and investing, Microsoft's shares soared about 9% before the bell, fueled by the company's impressive Q2 earnings.
- Meta Platforms' stocks surged 6% in premarket action, following the release of better-than-expected Q2 results, with ad revenue being a significant contributor.
- The results from Microsoft and Meta set the stage for today's earnings reports from Apple and Amazon, with analysts predicting growth in both companies' revenues and earnings per share.
- Elon Musk, CEO of Tesla, defies reports suggesting a board search for a potential successor, with the company's chairperson, Robyn Denholm, confirming Musk's continued leadership.
- As watchers in the finance industry weigh in on corporate earnings and technological advancements such as Bitcoin and AI Cloud, they also keep a close watch on futures markets, including oil, gold, and perhaps, potential futures trading for tokens from Initial Coin Offerings (ICOs).
