Stock futures traded mostly to the downside Thursday with
Nasdaq
futures slumping after
Tesla
‘s profit margins declined in the second quarter and revenue at
Netflix
came up short.
These stocks were poised to make moves Thursday:
Tesla
(ticker: TSLA) reported second-quarter earnings that topped analysts’ expectations and a revenue jump from a year earlier of 47%, but the electric-vehicle maker’s gross profit margins fell to 18.1% from 18.8% in the first quarter. Wall Street was looking for margins of between 18% and 19%. CEO Elon Musk also said third-quarter production would be “slightly’ lower than in the second quarter because of normal summer shutdowns to upgrade equipment. Tesla shares declined 4.1% to $279.31 in premarket trading.
Netflix
(NFLX) fell 6.7% in premarket trading after the streaming giant posted a surprise 5.89 million jump in subscribers in the second quarter but revenue that fell short of the company’s forecast. Sales guidance for the third quarter also was lower than anticipated, with Netflix saying it expects revenue of $8.52 billion vs. analysts’ forecasts of $8.67 billion.
Discover Financial Services
(DFS) fell 12% in premarket trading. Second-quarter earnings fell 18% and the company disclosed it was undergoing an internal review of certain card product misclassifications. Discover said it would pause stock buybacks during the review.
Catalent
(CTLT) jumped 8.2% in premarket trading after The Wall Street Journal reported activist shareholder Elliott Investment Management has built a significant stake in the contract drug manufacturer. Elliott also is seeking a share-up of
Catalent
‘s board, the Journal reported, citing people familiar with the matter.
D.R. Horton
(
DHI
) gained 4.8% after the home builder reported third-quarter earnings that beat expectations.
American depositary receipts of
Taiwan Semiconductor Manufacturing
(TSM) fell 3.2% after second-quarter profit and revenue declined as it grapples with a slump in demand for chips in electronic devices.
Las Vegas Sands
(LVS) reported second-quarter earnings and revenue that topped expectations but the stock was down 3.2% in premarket trading.
United Airlines
(UAL) posted second-quarter earnings well above analysts’ estimates and raised its profit outlook for the year. The carrier’s shares were up 2.5% in premarket trading.
American Airlines
(AAL) fell 2.2% even after the airline company posted better-than-expected earnings for its second quarter and raised guidance.
Shares of
Johnson & Johnson
(JNJ) were rising 1.3% in premarket trading after earnings from the healthcare giant beat estimates and the company raised guidance. The report comes amid new investor anxiety over the thousands of lawsuits that
Johnson & Johnson
faces over its talc-based products.
International Business Machines
(IBM) was down 0.9% after second-quarter earnings were better than expected but revenue came in slightly below expectations, mostly because of a higher-than-expected hit from unfavorable foreign exchange rates.
Philip Morris International
(PM) rose 0.4% after the maker of Marlboro cigarettes posted second-quarter adjusted earnings that beat analysts’ consensus.
Write to Joe Woelfel at [email protected]
Read the full article here
