Stock futures traded lower Wednesday with Wall Street expecting the Federal Reserve to boost interest rates for the 11th time since early 2022. There is a lot of uncertainty, however, on the central bank’s next move.
These stocks were poised to make moves Wednesday:
Microsoft
(MSFT) reported fiscal fourth-quarter earnings and revenue that beat Wall Street expectations but the stock was down 3.4% in premarket trading after revenue guidance for the fiscal first quarter came up shy of estimates and the company highlighted the rising costs of its investments in artificial intelligence.
Shares of
Alphabet
(GOOGL) were rising 6.4% after the parent of search giant Google reported second-quarter earnings that were better than expected and announced that Chief Financial Officer Roth Porat would become president and chief investment officer starting in September. Porat will be responsible for the company’s Other Bets portfolio.
Alphabet
also touted a range of investments in artificial intelligence during its conference call.
AT&T (T) reported second-quarter earnings that beat analysts’ estimates and free cash flow of $4.2 billion topped forecasts of $3.7 billion. The telecommunications giant said it added 326,000 postpaid phone net subscribers in the second quarter, missing expectations of 342,500, according to analysts polled by FactSet. The stock rose 1.8% in premarket trading.
Chip manufacturer
Texas Instruments
(TXN) posted second-quarter earnings that topped analysts’ expectations but issued a revenue forecast for the third quarter that was slightly below estimates.
Texas Instruments
said it expects third-quarter earnings of $1.68 to $1.92 a share on revenue of between $4.36 billion to $4.74 billion. Analysts had estimated third-quarter earnings of $1.91 a share on revenue of $4.59 billion. The stock fell 4%.
Snap
(SNAP) was tumbling 19% in premarket trading after the
Snapchat
parent issued a forecast for third-quarter sales that was below expectations. The social-media platform said it expects third-quarter revenue of $1.07 billion to $1.13 billion. The midpoint of that range was below estimates of $1.13 billion.
PacWest Bancorp
(PACW) surged 32% in premarket trading to $10.16 after agreeing to be acquired by
Banc of California
(BANC) in an all-stock deal. Under the terms of the deal, shares of PacWest were valued at $9.60 a share, a premium over its closing price of $7.69 a share on Tuesday. PacWest avoided the regional banking turmoil that led to the collapse of Silicon Valley Bank and two other lenders, but the stock has tumbled 66% this year amid deposit outflows.
Thermo Fisher Scientific
(TMO) declined 6.5% after slashing guidance for the year following second-quarter earnings that fell from a year earlier and missed analysts’ expectations.
Wells Fargo
(WFC) was rising 2.9% in premarket trading after the bank announced it would buy back $30 billion in stock, and its board approved an increase in the quarterly dividend to 35 cents a share from 30 cents.
Teladoc Health
(TDOC) jumped 6.2% after its second-quarter loss narrowed from a year earlier and the telemedicine provider issued an improved outlook for the year.
Dish Network
(DISH) was rising 12%. A report from Bloomberg said the company will begin selling its premium wireless service on
Amazon.com
‘s website later this week.
Aerospace giant
Boeing
(BA) is expected by analysts to report a quarterly loss of 89 cents a share on sales of $18.6 billion. Estimates, however, were wide, ranging from a loss of almost $1.30 a share to a loss of 35 cents. Wall Street has had difficulty determining what
Boeing
will earn in the years following the 2019 worldwide grounding of the 737 MAX and the Covid-19 pandemic.
Meta Platforms
(META)is scheduled to report quarterly earnings after markets close Wednesday.
Write to Joe Woelfel at [email protected]
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