U.S. stock index futures struggled for direction on Thursday as a clutch of earnings reports again pointed to a slowing global economy, while holding up in the face of already reduced expectations.
Tesla Inc
(TSLA.O) tumbled 12.3% and pressured Nasdaq futures NQcv1, after
the electric carmaker pushed back its profit timeline once again after missing
its quarterly financial targets.
On the other
hand, 3M Co (MMM.N) rose 4.5% after the manufacturing conglomerate reiterated its
full-year earnings forecast despite slowing growth in high-profile markets such
as China.
Facebook gained
1% after the social media giant reported quarterly revenue that beat estimates,
but said new rules and product changes aimed at protecting user privacy would
slow its revenue growth into next year.
Two weeks into the
second-quarter earnings season, about 77% of the 138 S&P 500 companies that
have reported so far have topped earnings estimates, according to Refinitiv
data.
Overall
earnings, however, are now expected to fall 0.1%, compared with a prior
estimate of a rise of about 1%.
Hopes that major
central banks would take monetary measures to impede the impact of a protracted
U.S.-China trade war has helped Wall Street’s main indexes hit record highs
this month.
The S&P 500
and Nasdaq hit an all-time high once again on Wednesday after Texas Instruments
hinted that a global slowdown in microchip demand would not be as long as
feared, which countered bleak earnings from bellwether companies Boeing and
Caterpillar.
The European Central Bank (ECB) is all but certain to ease
policy further on Thursday and set the path for the Federal Reserve when it
meets next week, but the biggest question is whether the ECB staggers its moves
over several months or opts for a big bang.
- Reuters
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