US stock futures traded higher on Wednesday, while crude prices briefly dropped to multi-decade lows before oil markets stabilized.
The street is continuing assess the pandemic’s impact on the global economy, with the oil market suggesting that the disturbances may be larger than anticipated by those who sent the S&P 500 up +30%.
Ministers from the OPEC+ coalition held an unscheduled conference call on Tuesday to discuss oil's plunge, but a statement signaled they didn’t reach any conclusion on new policy measures, Bloomberg reported.
The alliance cut production by 9.7 million barrels a day earlier in April, but the cuts weren't seen as enough to counter the demand drop.
Ahead, today's economic calendar includes; Crude Oil Inventories for the week ended April 17 at 10:30am EST.
Meanwhile, AT&T (T), Delta Air Lines (DAL), Visa (V), Lam Research (LRCX), Las Vegas Sands (LVS), Biogen (BIIB), CSX (CSX) and Kimberly-Clark (KMB) are all scheuled to report their earnings today.
TODAY'S TOP HEADLINES
Coronavirus: US Works to Contain Economic Fallout as Coronavirus Deaths Pass 45,000. (The WSJ)
The US death toll from the coronavirus pandemic climbed past 45,000 as a new stimulus package cleared the Senate, the latest effort by lawmakers to prop up an economy battered by lockdowns.
Today's Economical Announcements.
10:30AM - ★★★ - Crude Oil Inventories (Previous: 19.248M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Biogen (BIIB): [EARNINGS] Reported quarterly earnings of $9.14 per share, beating the consensus estimate of $7.73 a share. Revenue came in above forecasts as well. Biogen said the pandemic had introduced potentially unquantifiable risks to its business but believes compelling opportunities continue to exist in the therapies it is pursuing.
Chipotle Mexican Grill (CMG): [EARNINGS] Reported quarterly earnings of $3.08 per share, 18 cents a share above estimates. The restaurant chain’s revenue was in line with estimates. An 80% jump in online orders helped blunt the negative impact of the drop in restaurant dining due to the coronavirus outbreak.
Snap (SNAP): [EARNINGS] Lost 8 cents per share for its latest quarter, a penny a share wider than analysts were expecting. The social media company reported better-than-expected revenue and surging user numbers, however, as use of its chat app jumped with more people staying at home.
Delta Air Lines (DAL): [EARNINGS] Lost 51 cents per share for the first quarter, less than the 70 cents a share Wall Street had anticipated. Revenue was below forecasts, however, and fell 18% from a year ago. Delta said it expects to receive support from the CARES Act passed by lawmakers, and that the steps it has taken to conserve cash will cut its daily cash-burn rate in half.
Netflix (NFLX): [EARNINGS] Gained nearly 16 million subscribers during the first quarter as pandemic-related stay-at-home orders took hold, nearly double what the video streaming service had predicted. The company said it expected that pace of growth to slow. Netflix also reported an 8 cents a share miss in quarterly profit at $1.57 per share, with revenue essentially in line with expectations.
Expedia (EXPE): [NEWS] Is near a deal to sell a stake to private-equity firms Silver Lake Partners and Apollo Global Management (APO), according to sources. Such a deal would raise about $1 billion, with Expedia seeking to raise funds as the pandemic takes a heavy toll on Expedia’s online travel bookings.
AT&T (T): [EARNINGS] Reported quarterly earnings of 84 cents per share, a penny a share below estimates. Revenue also missed forecasts. The company said the coronavirus outbreak is clouding its financial outlook, and it has pulled its full-year forecast.
Kimberly-Clark (KMB): [EARNINGS] Earned $2.13 per share for its latest quarter, beating the $1.97 a share consensus estimate. Revenue also beat forecasts, driven by an 11% jump in organic sales, as consumers stocked up on essential items. Kimberly-Clark is withdrawing its full-year forecast due to uncertainties surrounding the Covid-19 pandemic.
United Airlines (UAL): [NEWS] Announced a secondary stock offering of more than 39 million shares to raise more than $1 billion. The offering was priced at $26.50 per share, 4.9% below Tuesday’s close.
Lyft (LYFT): [NEWS] Withdrew its 2020 guidance, saying the pandemic is having a negative effect on ride volumes. It said it would reveal detailed actions to weather the virus outbreak in early May.
Chevron (CVX): [NEWS] Was ordered by the White House to wind down its Venezuela operations by December 1. Chevron is the only major US oil company still operating in Venezuela.
Texas Instruments (TXN): [EARNINGS] Beat estimates by 24 cents a share, with quarterly profit of $1.24 per share. The chipmaker’s revenue also beat Wall Street forecasts, however the company said the virus outbreak would hit earnings this quarter, forecasting numbers that are below analysts’ projections.
Quest Diagnostics (DGX): [NEWS & EARNINGS] Said it had begun testing for Covid-19 antibodies in its medical labs, using tests made by Abbott Laboratories (ABT) and a unit of PerkinElmer (PKI). Separately, Quest reported quarterly earnings of 94 cents per share, 5 cents a share above estimates. Revenue also topped expectations. Quest reiterated previous statements that testing volume had fallen sharply in recent weeks.
Medtronic (MDT): [NEWS] Said revenue had plunged in recent weeks, as hospitals delay elective procedures that use Medtronic’s medical devices.
Macy’s (M): [NEWS] Is seeking to raise as much as $5 billion in debt, according to people familiar with the matter who spoke to CNBC. The retailer is not said to be focusing on a bankruptcy option at the current time.
DECLINERS: MD, AMN
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