US stock futures inched down Wednesday night after another record-setting session from the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC).
Futures tied to the S&P 500 (ES=F) edged down 0.3%, while Nasdaq 100 futures (NQ=F), slid 0.1%. Contracts linked to the Dow Jones Industrial Average (YM=F) fell about 0.4%.
During Wednesday’s regular session, both the S&P 500 and Nasdaq Composite closed at all-time highs, gaining 1% and 1.6%, respectively. The Dow Jones Industrial Average (^DJI) added 0.7%.
In after-hours trading, earnings drove sharp moves. Tesla (TSLA) initially climbed on an earnings beat but later turned lower, slipping around 2% after CEO Elon Musk cautioned that capital expenditure will be increasing and claiming that Tesla HW3.0 cars ‘do not have the capability’ for self-driving’.
Other moves in extended trading included ServiceNow (NOW) which fell 11.9% despite beating earnings expectations, and IBM (IBM) slipped 6.8% on slowed revenue growth with fears Anthropic will disrupt IBM’s business model.
Oil futures rose despite the announcement of a ceasefire between the US and Iran. Iran’s navy also said it seized two container ships in the Strait of Hormuz, highlighting the instability in the region. Brent (BZ=F) crude’s price per barrel jumped back above $100. West Texas Intermediate (CL=F) prices hovered around $92 a barrel.
Looking ahead, investors will be watching earnings from American Express (AXP), Blackstone (BX), and American Airlines (AAL). Economic data will also be in focus, including preliminary April readings for S&P Global manufacturing.
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Oil continues to rise as delayed US-Iran negotiations stokes supply fears
Bloomberg reports:
Oil rose for a fourth day as the US and Iran remained locked in a battle for control of the Strait of Hormuz after failing to meet for a fresh round of peace talks.
Brent (BZ=F) traded near $104 a barrel after jumping almost 13% in the last three sessions, while West Texas Intermediate (CL=F) was around $95. US President Donald Trump said the truce agreed April 7 would stay in place indefinitely while Washington waits for Iran to submit a new peace proposal, although Tehran says it has no plans to take part in negotiations imminently.
Global benchmark Brent jumped as much as 4.2% early in the session before quickly reversing on unconfirmed reports that there were explosions in Iran.
The war has rattled energy markets since it started at the end of February, with the near-closure of the Strait of Hormuz causing a sharp drop in flows from major producers in the Persian Gulf. The US maintained a naval blockade on ships going to and from Iran’s ports to pile pressure on the Islamic Republic, in a move Foreign Minister Abbas Araghchi called a violation of the ceasefire.
Read more here.
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ServiceNow stock slumps as Iran war dampens prospects, AI edges into market
Reuters reports:
ServiceNow (NOW) reported on Wednesday that delays in closing several large government deals in the Middle East hurt first-quarter subscription revenue growth, sending its shares down 12% in extended trading.
The company said its subscription revenue growth faced about a 75-basis-point headwind from delayed closures of several large on-premises deals in the region due to the ongoing conflict.
Chief Operating Officer Amit Zavery told Reuters that those deals are expected to close throughout the year. “We don’t know when these conflicts will get sorted out, but we continue to work with these customers,” he said.
ServiceNow, like its peers, is also facing investor concerns that artificial intelligence tools could shift enterprise clients away from traditional software by automating some of the tasks previously done by their products.
Read more here.
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Texas Instruments jumps after-hours following forecast
Bloomberg reports:
Texas Instruments Inc. (TXN) shares surged in late trading after the chipmaker gave a surprisingly strong forecast, helped by booming spending on data centers and industrial equipment.
Revenue will be $5 billion to $5.4 billion in the second quarter, the company said in a statement Wednesday. Analysts had estimated $4.85 billion on average, according to data compiled by Bloomberg.
A resurgence in demand for industrial components spanned all geographies and segments, Chief Executive Officer Haviv Ilan said on a conference call with analysts. The company’s revenue is still short of prior peaks, but that’s spurring optimism that the run-up can continue, he said.
Read more here.
