US stock futures point to recovery on Wall Street, with focus on Microsoft and Alphabet earnings

US stock index futures were pointing to gains on Wall Street on Wednesday, focusing on the tech sector after conflicting results from Microsoft and Alphabet Inc. and the worst day for the Nasdaq Composite on Tuesday since 2020.

How are stock index futures traded?
  • S&P 500 ES00 index futures,
    + 0.45%
    It rose 0.9% to 4210

  • Dow Jones Industrial Average futures YM00,
    + 0.70%
    It rose 372 points, or 1.1%, to 33,533 points

  • Nasdaq -100 futures NQ00,
    + 0.24%
    It rose 0.9% to 13135

employment Tuesday, Dow Industries DJIA,
-2.38%
It fell 809.28 points, or 2.4%, to close at 33,240.18 points. S&P 500 SPX Index,
-2.81%
It fell 2.8% to end at 4175.20. Nasdaq Composite,
-3.95%
It fell 4% to 12,490.74, marking the largest daily percentage drop since September 8, 2020 and the lowest close since December 14, 2020, according to market data from Dow Jones.

What is driving the markets?

Investors are grappling with several concerns at once, including fears that the Federal Reserve could push the economy into recession as it raises interest rates to fight high inflation, concerns about the COVID outbreak in China slowing economic growth, the ongoing war in Ukraine, and the mixed US. . Corporate earnings season.

The attempt to rebound tech stocks could stem from upbeat results from Microsoft MSFT,
-3.74%
After the tech giant reported late on Tuesday Earnings and sales estimates that exceed expectations. Shares jumped 5% in pre-market trading.

But Google’s Alphabet Company GOOGL,
-3.59%
Reported sales and profits That came in below estimates. The company also announced a $70 billion share buyback program. Shares fell 2.5 percent in pre-market trading.

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Tesla Inc. stock. TSLA for electric cars,
-12.18%
It rose 2.8% in pre-market trading, after a 10% drop on Tuesday amid concerns over CEO Elon Musk. It may take a lot With his suggested deal on Twitter TWTR,
-3.91%.

Read: If Elon Musk and Twitter don’t complete their deal, one of them will have to pay $1 billion

Chris Weston, head of research at Pepperstone, said in a note to clients.

“Again, ask what will [be] Circuit breaker to promote a higher permanent direction. Weston said my view is either it comes from believing that China has COVID under control or we hear a Fed member say, “Inflation is a concern but we’re watching for signs that growth concerns or financial conditions are tense.” Investors won’t hear from Fed officials after the Fed’s next meeting on May 4.

Parent on Facebook Meta FB,
-3.23%
The next big tech group to report, with those results expected after the market closes on Wednesday, along with Qualcomm QCOM, will be
-2.24%And
PayPal PYPL,
-4.65%
and Ford Motor F,
-3.16%.
Ahead of Wednesday’s opening, investors will hear from Boeing BA,
-0.04%
and Kraft-Heinz KHC, Inc.,
-1.70%And
Among other things.

Wednesday’s upcoming US economic data includes an advance report on international trade in goods, followed by the pending home sales index.

Investors are also watching tensions surrounding the war in Ukraine, with signs of an escalation after Russia’s Gazprom said on Wednesday it had halted gas shipments to Bulgaria and Poland. Because of the failure of those countries to pay in rubles. European gas prices saw a 10% jump.

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“It also highlights the weakness of other EU members such as Germany as they risk a similar cut soon,” Danske Bank strategists said in a note to clients. Those tensions affected the EURUSD,
-0.50%And
Which fell 0.3% against the dollar and its weakest level since April 2017.

Read: “Energy is increasingly weaponised.” Analysts assess the risks after Russia cut off gas to two EU countries

US crude prices CL00,
+ 0.20%

BRN00,
+ 0.20%
It is mostly trading higher, with NGK22 natural gas prices,
+ 0.66%
About 1% higher.

What companies are focused on?
  • General Motors Corporation
    GM,
    -4.47%
    Shares rose 3.8% in pre-market trading after the automaker reported disappointing first-quarter revenue, but He gave optimistic instructions.

  • stock in Texas Instruments Inc.
    TXN,
    -3.15%
    It fell 3% after the chip maker gave a cautious outlook on COVID-19 restrictions in China affecting manufacturing for its customers.

  • Robinhood Markets Inc.
    Hood,
    -3.75%
    down 1.2%. CEO of the online trading platform, Vlad Tenev, Announced a 9% reduction in the company’s workforce.

  • Mattel company
    mat,
    -4.70%
    Shares rose 11% after the Wall Street Journal reported The playmaker had informal conversations with private equity firms Apollo Global Management and L Catterton regarding their purchase.

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