U.S. index futures pointed upward a second straight day as investors prepare for another round of quarterly earnings and as states prepare to reopen their economies after the coronavirus lockdown, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
After starting the week on a high note, Wall Street looked to continue the rise as several U.S. states begin to allow businesses to slowly reopen after the coronavirus ground the economy to a halt.
Powered by a raft of U.S. monetary and fiscal stimulus, all three major stock indexes are now within 20% of their record closing highs, but analysts warn of further losses as economic data foreshadows a deep global recession.
Consumer confidence figures for April due later today are expected to slide further from near three-year lows hit in March, as widespread production halts put millions of Americans out of work.
Investors are also waiting for a two-day Federal Reserve policy meeting that kicks off Tuesday, although expectations are low for more central bank easing at this time.
Drugmakers Merck & Co. Inc. (NYSE: MRK) and Pfizer Inc. (NYSE: PFE) and industrial conglomerate 3M Co. (NYSE: MMM) are also scheduled to report results before the bell, while Google parent Alphabet Inc. (Nasdaq: GOOG), Ford Motor Co. (NYSE: F) and Starbucks Corp. (Nasdaq: SBUX) are among the high-profile companies reporting after markets close.
As of 9:20 a.m., Dow Jones futures are up 1.75%. S&P 500 futures gained 1.5%, while Nasdaq Composite futures rose 1.1%.
Stocks to Watch Today
Pfizer Inc. (NYSE: PFE) — The American pharmaceutical company beat Wall Street estimates on first-quarter earnings by $0.07 per share. The company also confirmed its 2020 financial guidance with revenue expected to be between $40.7 billion and $42.3 billion. Shares of Pfizer were up 2.5% in premarket trading.
Southwest Airlines Co. (NYSE: LUV) — Despite posting a narrower-than-expected quarterly loss, shares of the airline fell nearly 2%. The company posted an adjusted loss of $77 million, or $0.15 per share, compared to a $387 million profit in the same period a year ago.
3M Co. (NYSE: MMM) — Shares of the consumer goods company rose 3.4% in premarket trading after it reported stronger-than-expected Q1 earnings and revenue. 3M pulled its full-year profit guidance and suspended its share buyback program, but did keep its quarterly dividend.
Oil Futures Crater After Index Shift Prompts Fire Sale
West Texas Intermediate crude oil fell to around $11 a barrel after S&P Dow Jones Indices followed the United States Oil Fund LP (NYSEARCA: USO) and rolled its June contracts into July.
Oil prices have fallen 80% this year as the pandemic has wiped out demand for gasoline and crude oil, according to Bloomberg. U.S. oil producers have started delivering crude to the nation’s emergency stockpile as commercial space has run out.
Delays Hamper Small-Business Loan Program
The federal government has reopened the application process for small businesses seeking money from the Paycheck Protection Program.
However, The Wall Street Journal said the Small Business Administration’s portal for accepting those applications is being overwhelmed by demand and last-minute changes to guidelines on how to submit applications.
Senator Asks For Investigation Into Amazon
Sen. Josh Hawley, R-Missouri, has asked the Department of Justice to open a criminal antitrust investigation into Amazon.com Inc. (Nasdaq: AMZN).
In a letter to U.S. Attorney General William Barr, Hawley suggested the company “has engaged in predatory and exclusionary data practices to build and maintain a monopoly,” according to The Wall Street Journal.
What We’re Reading
Profit From the V-Shaped Economic Recovery With This Top Innovation ETF (Money & Markets)
HSBC Hits Pause on Mass Layoffs After Profits Plunge By 50% (CNN Business)
Hands Off Boeing, Embraer Stock as Companies Head to Arbitration (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
3M Co. (NYSE: MMM)
Alphabet Inc. (Nasdaq: GOOG)
Caterpillar Inc. (NYSE: CAT)
Ford Motor Co. (NYSE: F)
Southwest Airlines Co. (NYSE: LUV)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.