U.S. Stock Futures Rise as Tech Earnings Impact Sentiment
Stock futures are pointing higher and markets are trading with a cautiously positive tone Thursday as investors continue to digest earnings results from major technology companies and a Federal Reserve decision to keep interest rates unchanged. At the same time, concerns about parts of the tech sector were underscored by a notable decline in Microsoft shares after weaker-than-expected cloud revenue, signaling that sentiment around AI spending and returns remains a key focus for traders.Outside of equities, broader market dynamics reflect ongoing macro and geopolitical influences. Safe-haven assets such as gold have remained elevated amid continued uncertainty, and oil prices have pushed higher on geopolitical developments, underscoring that macro risks continue to shape positioning across asset classes. Overseas markets have been mixed, with some Asian and European indexes showing resilience even as global risk sentiment fluctuates around earnings news and policy expectations.In pre-market trading, S&P 500 futures rose 0.26%, Nasdaq futures rose 0.15% and Dow futures rose 0.09%.Check out this morning's top movers from around Wall Street, compiled by The Fly.UP AFTER EARNINGS -Meta Platformsup 9%Royal Caribbeanup 8%IBMup 8%Southwestup 7%MasterCardup 5%Lockheed Martinup 3%Teslaup 2%Caterpillarup 1%Honeywellup 1%Comcastdown 1%DOWN AFTER EARNINGS -ServiceNowdown 8%Microsoftdown 6%Las Vegas Sandsdown 5%Tractor Supplydown 4%L3Harris Technologiesdown 3%Sherwin Williamsdown 2%Dow Inc.down 2%Thermo Fisherdown 1%
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Caterpillar Q4 Earnings Preview: Mixed Expectations
- Earnings Expectations: Caterpillar is expected to report Q4 EPS of $4.71, reflecting an 8.4% decline year-over-year, while revenue is projected to increase nearly 10% to $17.76 billion, indicating the company's potential amid surging demand for energy and transportation equipment.
- Business Growth: The energy and transportation unit has outperformed expectations, becoming the fastest-growing segment, although traditional construction and mining operations are weighed down by U.S. import tariffs, impacting overall profitability.
- Market Performance: Over the past two years, Caterpillar has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, demonstrating its ability to manage market expectations, despite analysts maintaining a cautious outlook for the future.
- Stock Performance: Caterpillar's stock rose 59% last year, significantly outperforming the S&P 500's 16% increase, reflecting market confidence in its future growth potential.
Software Stocks Plunge as Tesla Reports Revenue Decline
- ServiceNow's Disappointing Results: Despite ServiceNow reporting a fourth-quarter EPS of $11.09, which exceeded expectations, its stock plummeted 11% as Morgan Stanley expressed concerns that growth prospects were insufficient to alleviate investor fears regarding AI competition.
- Widespread Software Stock Decline: Following ServiceNow's results, other software stocks like Atlassian and Salesforce fell 12% and 7% respectively, indicating strong market apprehension about AI disrupting traditional business models, leading the sector into a bear market.
- Tesla's First Revenue Decline: Tesla's stock dropped over 2% after announcing its first annual revenue decline and plans to halt production of Model S and X, shifting focus to developing Optimus robots and autonomous vehicles, highlighting the urgency of its strategic pivot.
- Royal Caribbean's Stock Surge: Royal Caribbean guided for first-quarter adjusted earnings between $3.18 and $3.28 per share, surpassing analyst expectations of $2.91, resulting in a 15% stock increase and also boosting shares of rival cruise lines.
