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Market Snapshot: U.S. stock futures struggle as first full week of earnings season comes to a close

U.S. stock index futures on Friday pointed to a quiet end to the first full week of the quarterly earnings reporting season, amid further signs the U.S. economy is slowing down. Read More...

U.S. stock index futures on Friday pointed to a quiet end to the first full week of the quarterly earnings reporting season, amid further signs the U.S. economy is slowing down.

What’s happening
  • Dow Jones Industrial Average futures YM00, +0.11% rose 20 points, or 0.1%, to 33,929.
  • S&P 500 futures ES00, +0.05% fell 1 point to 4,151.
  • Nasdaq 100 futures NQ00, -0.09% fell by 26 points, or 0.2%, to 13,048.

On Thursday, the Dow Jones Industrial Average DJIA, -0.33% fell 110 points, or 0.33%, to 337,87 as all three major Wall Street gauges fell following disappointing earnings from Tesla Inc. TSLA, -9.75% and AT&T T, -10.41%. All three of the main averages are on track to log their second weekly loss in three.

What’s driving markets

Recent economic data has been pointing to a deteriorating economy. The Conference Board’s leading economic index, released Thursday, fell to its lowest level since Nov. 2020, as the number of people collecting unemployment benefits reached the highest level since Nov. 2021.

After a mixed performance so far, earnings reports took a slightly more positive tone on Friday, with Procter & Gamble Co.’s PG, +0.37% stock rising during the premarket session after the company’s results surpassed Wall Street’s expectations for top and bottom-line growth.

Shares of Tesla looked set to erase some of Thursday’s losses as the car company raised prices of the Model S and Model X after concerns about margin pressure had weighed on the company.

See: AT&T stock suffers worst drop in more than 2 decades as cash flow dries up

Mark Haefele, chief investment officer for global wealth management at UBS, said the markets are pricing in a high probability of a near-perfect landing for the U.S. economy.

“We doubt everything will work out so perfectly, and instead see an uncertain outlook for the growth, earnings, and inflation picture,” he said. UBS prefers emerging markets over U.S. equities and prefers higher-quality segments of fixed income including government bonds, investment-grade credit and senior debt from financials.

Friday’s U.S. economic calendar includes the preliminary S&P Global manufacturing and service sector activity reports for April, while Procter & Gamble PG, +0.37% highlights the earnings calendar.

Companies in focus

HCA Healthcare Inc.‘s stock HCA, -0.81% jumped 7.1% toward a record high in premarket trading after the hospital operator reported a forecast-beating profit and lifted its full-year outlook, thanks to increased emergency-room visits, surgeries and admissions.

Procter & Gamble Co.‘s stock PG, +0.37% rose 2.2% after the consumer goods giant’s fiscal third-quarter results topped Wall Street top and bottom estimates, and the company lifted its full-year sales outlook.

Tesla Inc. shares TSLA, -9.75% were up 0.8% in premarket trading, after tumbling 9.75% on Thursday, after the electric vehicle maker raised prices on some models. The EV maker announced late Thursday price hikes for premium Model S and X cars in the U.S., after another round of price cuts earlier in the week. A day prior, Tesla shares tumbled after CEO Elon Musk suggested he would give priority to market share over margins. Truist Securities on Friday became the latest on Wall Street to slash its price target, also cutting the EV maker to hold from buy.

Shares of Meta Platforms Inc. META, -1.22% dropped 1.4% after Chief Executive Mark Zuckerberg reportedly said the tech company may not be through laying off workers, as its latest round of 4,000 landed this week and another batch looms for May.

Schlumberger Ltd.‘s stock SLB, -1.25% slipped 1%. The oil-field services company’s reported first-quarter adjusted earnings per share and revenue that beat forecasts, but cash flow from operations came in below consensus.

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