Futures climb after strong results from Tesla -Breaking
(Reuters) – U.S. Stock Index Futures rose Thursday after heavyweight Tesla (NASDAQ) surged following strong results. United Airlines also predicted a surprise profit for its current quarter and boosted shares in other airlines.
Premarket trading saw the world’s largest automaker increase 7.7%, as rising prices enabled it to overcome supply-chain chaos.
The previous session saw heavy losses in Netflix Inc’s (NASDAQ:) shares due to its poor results. This had caused a selloff of technology and growth stocks, and drove the tech-heavy Nasdaq lower by more than 1%.
United Airlines Holdings Inc (NASDAQ:) Inc. was another bright spot. It forecast profit for its second quarter, and stated that booming travel demand would generate the greatest quarterly revenue it has ever seen. Shares rose 7.5%.
Peers American Airlines (NASDAQ) Group Inc. Southwest Airlines (NYSE) Co. Delta Air Lines Inc. (NYSE) increased between 2.5% – 4.8%.
According to data from Refinitiv, analysts are expecting earnings growth to be 6.5% for the first quarter. This is compared with the 32.1% increase in the prior quarter.
Investors will pay attention to the speech by Jerome Powell, Federal Reserve Chair, later today for information on tightening of monetary policies. Many are expecting a 50 basis point increase in interest rates next month.
U.S. stocks were under pressure in this month’s market. High-growth stocks took a blow from an increase in Treasury yields, which is due to galloping inflation as well as hawkish comments from Fed policymakers.
At 08:30 ET, initial claims for state unemployment benefits are due. Expected claims to be down 5,000 to 180,000 seasonally for the week that ended April 16.
At 06:42 AM. ET was up 211, or 0.6%. It went up 34.75, or 0.78%. ET also increased 155.75, or 1.1%.
AT&T Inc (NYSE:) rose 1.5% after posting a rise in core wireless revenue for the first quarter, as the telecom giant benefited from the aggressive expansion of its fiber internet and 5G services.