Index futures rebounded as quarterly earnings reports increased investor sentiment following a two-day selloff, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
After the two-day rout of stocks thanks to a record crash in oil prices, Wall Street picked up Wednesday morning.
The benchmark S&P 500 index fell nearly 5% in the first two days of the week as West Texas Intermediate futures contracts for May plunged below zero and the benchmark Brent hovered near 1999 lows, triggering alarms about a hit to the global economy from a near halt in all business activity thanks to the novel coronavirus pandemic.
Trillions of dollars in stimulus have helped Wall Street recover from its March lows and the U.S. Senate on Tuesday approved another $484 billion in relief (see below for more), sending the bill to the House of Representatives for a final vote later this week.
Texas Instruments Inc. (Nasdaq: TXN) headed higher in thin premarket trading as it reported better-than-expected first-quarter results and said a strong inventory allowed it to be prepared for disruptions caused by the pandemic.
Fast-casual chain Chipotle Mexican Grill Inc. (NYSE: CMG) reported soaring digital and home delivery sales late Tuesday and said it had enough cash and liquidity to get through the next year.
Investor sentiment was also boosted by news that governors of about half a dozen U.S. states are pushing ahead with plans to partially reopen for business despite warnings by some health officials that doing so could trigger a new surge in the coronavirus cases.
As of 9:20 a.m. EDT, Dow Jones futures were up 1.6%. S&P 500 futures rose 1.7%, and Nasdaq Composite futures moved 1.6% higher.
Stocks to Watch Today
Netflix Inc. (Nasdaq: NFLX) — It was a big first quarter for the streaming service as it added 16 million new subscribers (see below for more). However, the company issued a cautious look ahead with lower paid subscribers and revenue. Shares of Netflix were down nearly 1% in premarket trading.
Delta Air Lines Inc. (NYSE: DAL) — The airline posted a $0.51-per-share loss in earnings, which was less than Wall Street projected for the first quarter. The company reported revenue of $8.59 billion — slightly below forecasts of $8.92 billion. Shares of Delta were up 1.9%.
Snap Inc. (NYSE: SNAP) — The parent company to social media platform Snapchat rose 19.7% after beating analyst expectations in both earnings and revenue. The company also saw active users jump 20% from last year.
Senate Approves $484 Billion Small Business Aid Package
On Tuesday night, the U.S. Senate approved a deal worth $484 billion in additional aid to small businesses and hospitals.
The new bill is an addition to the $2.2 trillion Congress already approved last month to try and help individuals, businesses and the health sector in the midst of a coronavirus lockdown that has nearly frozen the economy.
It also set aside an additional $320 billion for the Paycheck Protection Program after the original allocation of $350 billion was depleted last week.
According to The Wall Street Journal, President Donald Trump supported the legislation passed Tuesday, which now goes to the House, where a vote is expected Thursday.
Mortgage Application Volume Drops 0.8%
Demand for new mortgages hit a five-year low while refinancing application demand remained high.
Total mortgage application volume fell 0.8%, according to the Mortgage Bankers Association index. Refinance demand fell 1% last week, but remained 225% higher than a year ago and accounted for the total volume being 70% higher than last year.
Netflix Adds 16 Million New Customers Amid Coronavirus Lockdown
The coronavirus lockdown helped Netflix Inc. (Nasdaq: NFLX) add nearly 16 million new subscribers in the first quarter — more than double what the company projected.
The solid quarterly figures bring Netflix’s total subscriber count to 182.9 million globally, according to The Wall Street Journal.
What We’re Reading
3 Industrial Stocks to Buy for a Market Rebound (Money & Markets)
Small Firms Feel Ignored by Stimulus Loan Program (USA Today)
Sizemore: Negative Oil Prices — When Finance Breaks (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
AT&T Inc. (NYSE: T)
Delta Air Lines Inc. (NYSE: DAL)
Kinder Morgan Inc. (NYSE: KMI)
Lam Research Corp. (Nasdaq: LRCX)
TD Ameritrade Holding Corp. (Nasdaq: AMTD)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.