US stock futures slumped on Thursday after the Federal Reserve issued its outlook for the US economy and pledged its continuous support.
The S&P 500 (+1.23%) closed higher yesterday, after the Fed left rates unchanged, however vowed to continue using all tools to support an economy which is "depend significantly on the course of the virus".
The central bank added that economic activity and employment, after steep declines, “have picked up somewhat in recent months but remain well below their levels at the beginning of the year".
Ahead, the street will focus on earnings from some of America's tech giants, including; Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL) and Facebook (FB), which have unprecedented influence on the stock market, making up 22% of the S&P 500 along with Microsoft (MSFT).
In corporate news; Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Facebook (FB), Ford (F), Kraft Heinz (KHC), Comcast (CMCSA), DuPont (DD), Gilead Sciences (GILD), MGM Resorts (MGM) Procter & Gamble (PG) and United Parcel Service (UPS) will all report earnings today.
Today's economic calendar includes; second-quarter Gross Domestic Product and Weekly Jobless Claims both at 8:30am EST.
TODAY'S TOP HEADLINES
Coronavirus: Daily US Cases Top 70,000 Again. (CNBC)
US new coronavirus cases look to have peaked, but hospitalizations and deaths continue to rise as they lag behind a surge in cases.
Today's Economical Announcements.
08:30AM - ★★★ -Weekly Jobless Claims (Previous: 1.416M)
08:30AM - ★★★ - GDP (Q2) (Previous: -5.0%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
United Parcel Service (UPS): [EARNINGS] Reported quarterly profit of $2.13 per share, nearly double the $1.07 a share consensus estimate. Revenue exceeded forecasts as well. UPS benefited from a surge in residential volume due to the pandemic, among other factors, but is still withholding guidance due to economic uncertainty.
Qualcomm (QCOM): [EARNINGS] Reported quarterly earnings of 86 cents per share, 15 cents a share above estimates. The chip maker’s revenue also exceeded Wall Street forecasts and the company gave an upbeat forecast on prospects for sales of its chips for 5G devices. Separately, it resolved a licensing dispute with China’s Huawei and will receive a $1.8 billion payment during the fiscal fourth quarter.
Comcast (CMCSA): [EARNINGS] Reported quarterly earnings of 69 cents per share, 14 cents a share above estimates. Revenue topped consensus as well. Strength in the broadband business helped offset weakness in advertising sales.
ServiceNow (NOW): [EARNINGS] Reported quarterly earnings of $1.23 per share, 22 cents a share above estimates. The cloud software company’s revenue was slightly above consensus, boosted by a 30% jump in subscription revenue.
PayPal (PYPL): [EARNINGS] Earned $1.07 per share for its latest quarter, beating consensus by 19 cents a share. The payment services company’s revenue also came in above forecasts, driven by a jump in e-commerce transactions as well as new accounts.
O’Reilly Automotive (ORLY): [EARNINGS] Earned $7.10 per share for its latest quarter, well above the consensus estimate of $4.41 a share. The auto parts retailer’s revenue came in above estimates as well, helped by consumers spending stimulus checks and unemployment benefits on fixing their cars ahead of the lifting of Covid-19 lockdown measures.
Fitbit (FIT): [NEWS] European antitrust regulators are set to open a full investigation of Google’s proposed acquisition of the fitness device maker, according to people familiar with the matter who spoke to Reuters.
Procter & Gamble (PG): [EARNINGS] Earned $1.16 per share for its fiscal fourth quarter, 15 cents a share above estimates. Revenue came in above forecasts as well. Organic sales rose 6%, with particular strength in cleaning products boosted by pandemic-related concerns.
Yum China (YUMC): [EARNINGS] Beat estimates by 9 cents a share, with quarterly profit of 35 cents per share. The restaurant operator’s revenue was below forecasts as a resurgence in the coronavirus in China hurt sales.
Generac (GNRC): [EARNINGS] Earned $1.40 per share for the second quarter, well above the 89 cents a share consensus estimate. Revenue was also solidly above forecasts, helped by a surge in residential sales as consumers focused more on their homes during the pandemic.
Yum Brands (YUM): [EARNINGS] Earned 82 cents per share for its latest quarter, beating the 54 cents a share consensus estimate. Revenue also exceeded estimates and same-store sales fell less than analysts had been anticipating, boosted by demand for comfort foods during lockdowns.
Kraft Heinz (KHC): [EARNINGS] Beat estimates by 15 cents a share, with quarterly profit of 80 cents per share. Revenue topped estimates as well. Organic net sales jumped 7.4%, helped by stay-at-home consumers buying more amid the Covid-19 pandemic.
Eli Lilly (LLY): [EARNINGS] Came in 33 cents a share above estimates, with quarterly earnings of $1.89 per share. Revenue fell short of Wall Street forecasts. Lilly’s results were helped by strong demand for its Trulicity diabetes drug, and the company also raised its full-year forecast.
Archer Daniels Midland (ADM): [EARNINGS] Reported quarterly profit of 85 cents per share, well above the 51 cents a share consensus estimate. The grain processor’s revenue also beat Wall Street forecasts, benefiting from record crop exports as countries sought to secure stable food supplies during the pandemic.
Cigna (CI): [EARNINGS] Earned $5.81 per share, beating the $5.15 a share consensus estimate. The health insurer’s revenue was also above Wall Street projections. As with other health insurers, Cigna’s results were boosted by a delay in surgeries and other medical procedures due to the pandemic.
Dunkin’ Brands (DNKN): [EARNINGS] Came in a penny a share above estimates, with quarterly earnings of 49 cents per share. Revenue came in above estimates as well. U.S. comparable-store sales fell at both Dunkin’ and Baskin-Robbins, but both declines were smaller than analysts had anticipated.
Stanley Black & Decker (SWK): [EARNINGS] Beat estimates by 37 cents a share, with quarterly profit of $1.60 per share. Revenue also beat forecasts. The company is continuing to withhold guidance amid pandemic-related economic uncertainty.
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