Today’s Premarket shows Stock futures moved lower in the premarket hours of Tuesday, amid Middle Eastern concerns ahead of Powell’s address later.
Top stock gainers
Telefonaktiebolaget LM Ericsson (ERIC) shares rose more than 7% after the company reported a strong Q1 adjusted profit of SEK0.77, compared to SEK0.45 a year ago. This result includes a one-time gain of 1.9 billion crowns associated with the termination of a business dispute. The business expects revenues to recover in the second half of the year as a result of recent contract wins and the normalization of client inventory levels in North America. Ericsson estimates the Networks gross margin to be between 42-44% in the second quarter, excluding restructuring charges. An better business mix is likely to boost margins in the latter part of the year. Ericsson’s primary goal continues to improve cash flow.
Shares of Macatawa Bank (MCBC) rose 38% after Wintrust Financial (WTFC) agreed to buy the bank in an all-stock transaction worth about $510.3 million. This transaction is intended to help Wintrust increase its foothold in western Michigan.
Top stock losses
Shares of Live Nation Entertainment (LYV) fell around 8% on news that the Justice Department is planning to bring an antitrust case against the event promoter as early as next month. According to a Wall Street Journal story published on Monday, the regulator is expected to argue that Live Nation (LYV) used its strong position to hinder competition in live event tickets.
Premarket
Gainers
Ericsson (BS:ERICAs) ADRs rose 8.1% after the Swedish telecom equipment maker reported a higher-than-expected first-quarter earnings and indicated sales should stabilize in the second half of the year amid sluggish demand for 5G gear.
UnitedHealth (NYSE:UNH) shares climbed 7.5% after the health insurer reported that it expects to lose up to $1.35 per share in full-year earnings as a result of interruptions caused by the February cyber assault at its Change Healthcare (NASDAQ:CHNG) arm, a significant sum but not as much as previously thought.
Morgan Stanley (NYSE:MS) shares jumped 2.8% as the banking behemoth reported a profit increase in the first quarter, boosted by a rebound in investment banking following a two-year dealmaking drought.
Trump Media & Technology (NASDAQ:DJT) shares increased 1.9% after the media company revealed intentions to launch a live TV streaming platform in phases following six months of testing.
BNY Mellon (NYSE:BK) shares increased 1.6% after the lender announced a 5% increase in earnings, with growing asset prices driving up investment services fees, more than offsetting decreased interest income for the world’s largest custodian bank.
AMD (NASDAQ:AMD) shares jumped 1% after HSBC raised the chipmaker’s rating to ‘buy’ from ‘hold’, stating that the artificial intelligence total addressable market is “more than enough to go around.”
Bank of America’s (NYSE:BAC) stock jumped 0.7% after the lender reported a significant increase in income from investment banking and wealth management, slightly offsetting the projected reduction in interest payments.
Losers
Tesla’s (NASDAQ:TSLA) shares slumped 2.3% after CEO Elon Musk warned employees in an internal message obtained by Reuters that the EV manufacturer is cutting off more than 10% of its worldwide workforce as it struggles with declining sales and an increasing pricing battle for electric vehicles.
PNC Financial Services Group (NYSE:PNC) shares declined 0.7% after the lender announced a 21% drop in first-quarter earnings, attributed to decreased interest revenue as it paid more to keep client deposits in a high interest rate environment.
Johnson & Johnson’s (NYSE:JNJ) shares dipped 0.2% as the healthcare company posted poor first-quarter revenue statistics, with sales of its blockbuster psoriasis medicine Stelara falling short of expectations.
Stock in focus
Before the market opened, Johnson & Johnson (JNJ) stock fell 1% as the pharmaceutical company reduced its annual operating sales guidance and missed quarterly revenue targets. Adjusted Q1 J&J (JNJ) earnings were $2.71 per share on $21.4B in revenue. Analysts predicted $21.4B in revenue and $2.65 per share. J&J’s (JNJ) medical technology segment earned $7.8B quarterly, missing consensus. The company’s flagship psoriasis treatment Stelara experienced a 0.3% Y/Y increase in revenue to $2.45B. Charts for J&J (JNJ).
Morgan Stanley (MS) shares rose 4% before the bell after reporting a Q1 top and bottom line beat. Credit benefit, investment banking comeback, and wealth management revenue drove success. The Firm has $7T of client assets across Wealth and Investment Management due to robust net new asset growth. Morgan Stanley (MS) CEO Ted Pick said Institutional Securities observed market and underwriting strength. The lender’s quarterly net interest income fell to $1.80B from $1.90B a year earlier and below the Visible Alpha average of $1.99B.
BAC also attributed its Q1 top and bottom line performance to a comeback in investment banking. The lender’s stock rose 2% before market open, among the most actively traded. “21 quarters of net checking account growth brought us to 36.9M consumer checking accounts. Our Wealth Management team saw record revenue and client balances, and investment banking rebounded “BAC CEO Brian Moynihan remarked. BofA’s (BAC) quarterly net interest income was $14.2B, down from $14.6B a year earlier but above the Visible Alpha consensus of $14B. Charts showing BAC performance.
DJT shares rose 1% pre-market. They fell more than 18% the day before after the corporation listed shares for sale. Former U.S. President Donald Trump’s social media company registered 146.11M common stock for holders, 21.49M warrant-eligible shares, and 4.06M warrants to purchase common stock. After its successful market launch in early March, Trump Media (DJT) shares has fallen 62.5% from $70.90 to $26.61.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.