Stock Market Preview: Tech Earnings Drive Premarket Gains Ahead of Inflation Data
Stock futures edged higher in premarket trading on Friday, setting the stage for a potentially positive start to the trading day. The gains were primarily driven by upbeat earnings reports from major technology companies, which overshadowed concerns about upcoming inflation data.
Biggest Stock Gainers
*
Alphabet (GOOG, GOOGL):
Alphabet, the parent company of Google, emerged as the biggest gainer, with its stock soaring 11%. The company reported strong first-quarter (Q1) results, fueled by a surge in YouTube ad revenue, which grew 21% year-over-year (Y/Y). Additionally, the momentum in the Cloud segment continued, with 28% revenue growth. Alphabet also announced a massive share buyback program worth up to $70 billion and declared a cash dividend of $0.20 per share.*
Microsoft (MSFT):
Technology giant Microsoft also performed well, with its shares climbing about 5% after reporting better-than-expected third-quarter (FQ3) earnings. The company’s total sales rose 17%, driven by 31% Y/Y growth in its Azure cloud computing platform, signaling strong demand for AI and cloud services. Microsoft provided a slightly cautious outlook for Q4, with sales expected to be between $63.5 billion and $64.5 billion, slightly below the consensus estimate of $64.57 billion.*
Snap (SNAP):
Social media company Snap reported an upbeat Q1 and Q2 outlook, sending its shares soaring by 24%. The company expects Q2 revenue to be between $1.225 billion and $1.255 billion, implying a Y/Y growth of 15% to 18% and above the consensus of $1.21 billion.Biggest Stock Losers
*
Intel Corporation (INTC):
Semiconductor giant Intel Corporation underperformed, with its stock plunging as much as 7% after the company reported mixed Q1 results. While the company’s revenue grew 9% Y/Y, it missed the top-line expectations. Intel also provided a disappointing outlook, forecasting revenue between $12.5 billion and $13.5 billion, well below the consensus of $13.61 billion. Additionally, the company’s adjusted earnings per share (EPS) came in significantly below the consensus estimate, at $0.10 per share compared to the expected $0.25 per share.As investors await the release of key U.S. inflation data on Friday, the positive earnings reports from tech companies have boosted market sentiment and set the stage for a potentially positive start to the trading day.
