U.S. stock index futures dropped on Thursday morning as Wall Street appraised a mixed bag of corporate earnings, and results from Tesla dragged down technology stocks. Futures tied to the Dow Jones Industrial Average lost 188 points, or 0.55%. S&P 500 futures shed 0.8%, while Nasdaq-100 futures slipped 1.1%. Concerns of margin pressures weighed on Tesla shares as the company cut prices on some of its cars. The electric vehicle maker posted a more than 20% decline in both net income and GAAP earnings from a year ago. Shares fell more than 7% before the bell. Disappointing results from both AT&T and American Express failed to alleviate some of the market concern. The payments company, offering another look at the health of the U.S. consumer, dipped 1% as earning per share that fell short of estimates. So far this earnings season, about 16% of companies in the S&P 500 have reported earnings, according to FactSet. The lack of profit forecast and guidance, however, has begun to concern some investors. The S&P 500 finished Wednesday’s session slightly below its flatline as investors digested the latest batch of earnings, including Netflix and Morgan Stanley, which are both members of the broad index. Though investor focus has largely moved to these quarterly results, the reporting companies alone have not driven the broader market, according to William Northey, senior investment director at U.S. Bank Wealth Management. “Earnings reports have been mixed thus far, with individual stocks responding to specific company results relative to expectations rather than broad index directionality,” he said. The Nasdaq Composite ended Wednesday slightly higher, while the Dow closed 0.2% lower, posting its first back-to-back declines in more than a month. Beyond earnings, investors will keep an eye on morning data on jobless claims and existing home sales. Federal Reserve Governor Christopher Waller, Atlanta Fed President Raphael Bostic and Cleveland Fed President Loretta Mester are among central bank speakers slated to give remarks on the economy around the country in the afternoon and evening. In remarks late Wednesday, New York Fed President John Williams said inflation is still too high and the central bank needs to hold policy tight. Asia-Pacific markets were mixed on Thursday as investors on Wall Street digest more earnings reports from names like Netflix, IBM and Morgan Stanley. Japan’s Nikkei 225 gained 0.18% to end at 28,657.57, and the Topix marginally fell to end at 2,039.73 as Japan’s trade deficit hit a record high of 21.7 trillion yen ($161.14 billion) for its full fiscal year ending March. In Australia, the S&P/ASX 200 was down 0.04% to finish at 7,362.2, while South Korea’s Kospi slid 0.46% to end at 2,563.11 and the Kosdaq dipped 2.58% to close at 885.71. Mainland Chinese markets were also all down, with the Shanghai Composite down 0.09% to end the day at 3,367.03. The Shenzhen Component closed 0.37% lower at 11,717.26. Hong Kong’s Hang Seng Index was up marginally, but the Hang Seng Tech index was down 0.1%. Oil prices fell on Thursday as muted U.S. economic data and expectations of interest rate hikes pushed up the U.S. dollar, prompting fear of a stronger dollar hurting global oil demand by making it more expensive. Brent futures for June delivery were down by 37 cents, or 0.4%, at $82.76 a barrel. West Texas Intermediate crude (WTI) for May delivery lost 28 cents, or 0.35%, to trade at $78.88 at 0005 GMT. Gold prices inched down on Thursday, after hitting a more than two-week low in the previous session, as investors grappled with the likelihood of more interest rate hikes by central banks to contain inflationary pressures. Spot gold was down 0.1% at $1,992.23 per ounce, as of 0332 GMT. U.S. gold futures fell 0.2% to $2,004.00.
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