Dow futures fall nearly 300 points, Microsoft tumbles after earnings

Boeing, News Corp, AT&T among stocks making biggest pre-market moves

Here are some of the companies making headlines before the bell:

Boeing – Boeing’s stock fell about 1.7% before market after the aircraft maker reported earnings and revenue that beat expectations, despite a recovery in demand. The company cited labor and supply shortages for the disappointing numbers.

press company, FoxNews – Shares of News Corp and Fox News rose 4.9% and 1.8%, respectively, after Rupert Murdoch abandoned plans to merge the two companies, a proposal that was rebuffed by shareholders.

AT&T – Shares rose 1.8% after the telecom giant’s fourth-quarter report was released on Wednesday, showing an increase in subscribers but forecasting annual profit below expectations.

Microsoft – Microsoft shares fell nearly 3% after the software giant shared a dismal revenue forecast for the current quarter. The tech leader beat earnings expectations but said new business growth slowed in December, including within its Azure segment.

Click here to learn more about the top players in today’s market.

—Pia Singh

Amazon shares fall as Bernstein cuts price target

Shares of Amazon fell nearly 3% premarket as part of a cut to Bernstein analysts’ price target.

The company cut its price target by $5 to $120 per share, which is up about 25% from Tuesday’s closing price.

“We remain comfortably above the street on EBIT for 2023 as we see operating leverage as a moment, not an if, but we are keeping an eye on the outlook for AWS as MSFT…has well performed this quarter but the guide was weak,” analyst Nikhil Devnani said in a note to clients on Wednesday.

Bank of America analyst Justin Post, meanwhile, raised concerns about the company’s Amazon Web Services division heading for profit. He cited Microsoft’s recent Azure guidelines as an indicator of decelerating cloud spending.

“We believe it will take a few more quarters to digest the high cloud spend in the pandemic era, but with a large total addressable market and healthy innovation, industry growth may accelerate in 2024. “, he said in a Tuesday note.

— Samantha Subin

AT&T grows at the rate of profits

AT&T shares rose more than 2% before the bell despite posting mixed quarterly results.

The telecommunications giant beat earnings estimates by 4 cents per share, although revenue was slightly lower at $31.39 billion, as analysts expected.

— Samantha Subin

Boeing declines due to shortfall

Boeing shares fell as much as 4% before the bell after fourth-quarter earnings fell short of estimates at both the top and bottom due to labor and supply shortages.

The aircraft manufacturer posted an unexpected loss of $1.75 per share on revenue of $19.98 billion. Analysts had forecast earnings of 26 cents per share on revenue of $20.38 billion.

Despite the failure of the top and bottom, Boeing generated free cash flow last year for the first time since 2018.

Boeing drops due to shortfall

— Leslie Josephs, Samantha Subin

Mortgage interest rates fall for the third week in a row

Demand for weekly mortgages rose last week as rates fell for the third consecutive period.

Total demand volume rose 7% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

At the same time, rates fell to their lowest level since September, with the average contractual interest rate for 30-year fixed-rate mortgages with conforming loan balances falling from 6.23% to 6.2 %.

—Diana Olick, Samantha Subin

Intuitive Surgical Falls After Shortfall

Shares of Intuitive Surgical fell nearly 9% premarket after the company reported weaker-than-expected quarterly results.

Intuitive Surgical earned $1.23 per share on revenue of $1.66 billion. Analysts polled by Refinitiv had expected earnings of $1.25 per share on revenue of $1.67 billion. The company cited a resurgence in Covid cases in China, which hurt procedure volumes in the region.

ISRG drops after earnings

Microsoft shares lose after-hours gains and turn negative

Microsoft shares fell about 1% in after-hours trading, reversing earlier gains.

Shares were initially higher after the company posted quarterly earnings per share that beat Street expectations. However, investor sentiment soured after Microsoft issued a disappointing current-quarter revenue forecast on its earnings conference call.

The company forecast revenue of $50.5 billion to $51.5 billion in the fiscal third quarter, while analysts polled by Refinitiv expected $52.43 billion.

Learn more about Microsoft’s results here.

Darla Mercado, Jordan Novet

Morgan Stanley’s Mike Wilson expects profits to start rolling on weaker consumer

Morgan Stanley’s Mike Wilson said investors should prepare for tougher times ahead.

“The numbers are finally going to come down in a way that we didn’t think would happen in the fourth quarter, which they haven’t, but now we think it’s happening,” Wilson said Tuesday on “Closing Bell: Overtime” from CNBC. ”

The investment strategist said he expects earnings to start to pick up as companies deal with a weakening consumer.

Still, he’s ready to change his outlook if he doesn’t see a “more meaningful” levy in the next three or four months, or by April.

“We’ll probably cancel our call, … because we’re still in a world of some financial repression, and bonds aren’t necessarily a great longer-term alternative, and stocks are kind of the only game in city ​​in a higher inflationary environment,” he said. “We’re not prepared to make that call today because we think the reward for risk is out of whack.”

—Sarah Min

Microsoft shares rise after earnings results show resilience in the cloud

Shares of Microsoft led the gains in after-hours trading, up more than 4% after its quarterly results beat estimates on both top and bottom earnings. The stronger than expected report was driven by strong growth in its cloud unit.

Revenue from Microsoft’s Intelligent Cloud segment was $21.51 billion, up 18%. Meanwhile, sales of Azure and other cloud services, which Microsoft does not report in dollars, rose 31%.

—Yun Li

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