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postUS stock futures took a breather on Thursday as investors digested the outcome of talks between President Trump and Chinese leader Xi Jinping, the Federal Reserve’s policy meeting, and a mixed bag of Big Tech earnings.
Dow Jones Industrial Average (YM=F) slipped 0.2%. Contracts on the broad benchmark S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) swung between slight gains and losses.
Stocks have lost steam after Fed Chair Jerome Powell stressed that a December rate cut is “not a foregone conclusion — far from it.” His comments, which came after the central bank lowered its benchmark rate by a quarter percentage point, highlight division among policymakers.
The Trump-Xi meeting failed to provide a boost, delivering the deal the market expected: A small cut in overall US tariffs on China goods in return for a pause in Beijing’s curbs on rare earth supplies, and China to start buying US soybeans again.
Meanwhile, investors braced for quarterly results from tech megacaps Apple (AAPL) and Amazon (AMZN) after the bell, following earnings reports from their “Magnificent Seven” counterparts Alphabet (GOOG), Meta (META), and Microsoft (MSFT) late Wednesday.
Alphabet shares jumped over 7% after the Google parent reported stronger-than-expected quarterly results. But Meta sank almost 8% and Microsoft slipped nearly 3% as investors parsed the companies’ outlooks.
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Premarket movers: Google, Estee Lauder and Hanwha
Google parent Alphabet (GOOG, GOOGL) stock rose 7% in premarket trading on Thursday after reporting third quarter revenue and earnings on Wednesday that surpassed Wall Street’s expectations following a slew of AI deals involving its cloud segment.
Estee Lauder (EL) stock rose 5% before the bell on Thursday after beating Wall Street estimates for first-quarter sales in a sign that CEO Stephane de La Faverie’s turnaround push was beginning to take hold, sending its shares up about 5% in premarket trading.
Hanwha Ocean Co. (042660.KS) stock rose 6% on Thursday after the US and China agreed to end its tit-for-tat port fees on on vessels linked to the other for one year.
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Chipotle stock craters nearly 20% on downbeat sales outlook
The slide in Chipotle (CMG) shares is accelerating in premarket, after the burrito chain on Wednesday cut its guidance on full-year sales once again. Traffic to its outlets is falling as customers grapple with the cost of living.
Yahoo Finance’s Brooke DiPalma reports:
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Microsoft earnings: Some derivative trades
Microsoft (MSFT) stock is getting hit premarket after it reported slightly lower than expected Azure sales.
The results for its Azure cloud platform were still strong. Analysts at Citi made a good point in a note this morning, calling out Datadog (DDOG), JFrog (FROG), MongoDB (MDB), and Elastic (ESTC):
“We believe the solid Azure results bode well for other consumption-based companies set to report in coming weeks/months (DDOG, FROG, SNOW, MDB, ESTC).”
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Trump lays out the largest takeaways from Xi meeting
President Donald Trump addressed reporters, discussing the main points of interest from the long-awaited 90-minute trade talk between him and Chinese President Xi Jinping.
Reuters reports:
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Stellantis posts higher revenue, trims estimate of tariff impact
Stellantis (STLA, STLAM.MI) reported a 13% year-on-year increase in revenue in its third quarter earnings on Thursday. The automaker’s US-listed shares fell over 4% before the bell.
Reuters reports:
Read more here.
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OpenAI hints at potentially record-setting IPO
Reuters reports
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