Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024.
Miguel M. Santiago | fake images
U.S. stock futures fell Thursday morning as Salesforce shares fell due to a lack of quarterly revenue and weak guidance.
Futures linked to Dow Jones Industrial Average fell 384 points, or 0.9%. S&P 500 Futures fell by approximately 0.5%, and Nasdaq-100 Futures fell 0.56%.
In extended trade, Sales force plummeted around 16% after failing income expectations for the first fiscal quarter. The company's earnings and revenue outlook for the second quarter also fell short of Street estimates. Retailer American Eagle Outfitters It also declined about 10% after first-quarter revenue missed analyst forecasts.
During Wednesday's session, the Nasdaq Composite fell about 0.6%, recording its worst session in May despite a 0.8% advance for Nvidia. He S&P 500 decreased by 0.7% and the Dow fell almost 1.1%.
It was a notably difficult day for equity markets. More than 400 stocks in the S&P 500 traded negative that day and all 11 sectors plummeted.
A rebound in 10-year Treasury The yield, which exceeded 4.6%, affected investor confidence, according to Ross Mayfield, an investment strategy analyst at Baird. Higher yields can be bad news for stock investors, as they reduce the multiples investors are willing to pay for stocks and make safer investments, such as Treasury bills and money market funds, more attractive.
"We have a 'higher for longer' context, which is not new news, but in the future [current] catalyst void, is weighing on average stocks, particularly at a stretched valuation like we currently have," Mayfield said.
On Thursday, investors will be watching the weekly jobless claims numbers. The second reading of the real gross domestic product for the first quarter is also scheduled. The main event for economic data this week is Friday's release of the April Personal Consumption Expenditures Price Index report, the Federal Reserve's preferred inflation gauge.
Earnings season continues Thursday, with Best Buy and Dollar General announcing their quarterly results in the morning. Dell Technologies, Costco, Gap and Nordstrom will report earnings after the bell.
