Stocks futures are pointing lower this morning after major indexes closed at record highs yesterday, as investors await economic data and earnings reports; a key inflation indicator is due to be released this morning; Snowflake shares are soaring after the cloud software company reported earnings and announced a paid of deals; Costco and Dell are scheduled to release their quarterly results after the closing bell; and FedEx Freight will start trading on Monday after completing a spinoff from its parent company. Here’s what you need to know today.
Stock Futures Slip After Indexes Closed at Records
Stock futures are slightly lower this morning after all three major indexes hit record highs on Wednesday. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2% recently, while Nasdaq futures slipped 0.3%. Crude oil prices are back on the rise—WTI crude futures, the U.S. benchmark, were up 3% at $91.20 per barrel—after the U.S. military said late last night that it shot down four drones around the Strait of Hormuz and attacked a site in Iran that was about to launch a fifth, poking holes in investor hopes for an imminent peace deal. Gold futures were down 1.4% at $4,420 an ounce, while bitcoin was at $73,200, down from a high near $76,000 yesterday. The yield on the 10-year Treasury note, which affects interest rates on loans, rose to 4.51% from 4.49% at Wednesday’s close.
PCE Report Leads Busy Day of Economic Data
Investors will get updates on a range of economic indicators this morning, headlined by the Personal Consumption Expenditures index, a key inflation metric. The index is expected to show that inflation in the 12 months through April stood at 3.8%, up from 3.5% in March, as the economy absorbs the impact of rising prices for fuel and other products as a result of the Iran war. “Core” inflation, which excludes volatile food and energy prices, is expected to come in at 3.3%, according to economists. Other noteworthy data points due out today include the second revision to first-quarter gross domestic product, a report on durable goods orders and new home sales figures for April.
Snowflake Stock Jumps After Earnings, New Deals
Shares of Snowflake (SNOW) are skyrocketing after the cloud software company reported better-than-expected first quarter results and announced a pair of deals. The company said after the bell Wednesday that it earned an adjusted 39 cents per share on $1.39 billion in revenue, up 34% year-over-year, each better than analysts had forecast. Snowflake also raised its outlook, citing strong AI demand. Meanwhile, Snowflake announced a commitment to spend $6 billion with Amazon’s (AMZN) AWS cloud unit, as well as the acquisition of startup Natoma to bolster its ability to help customers use AI agents. Snowflake shares, which through yesterday’s close had lost 20% of their value since the start of the year, were up 38% in recent premarket trading.
Reports From Dell, Costco Coming After The Bell Today
More big-name earnings reports are coming today, with results from Costco Wholesale (COST) and Dell Technologies (DELL) due after the closing bell. Analysts expect another solid quarter of growing sales and profits from Costco. Shares of the retail giant have been under pressure in the past week after a mixed report from rival Walmart (WMT) suggested consumers are struggling to keep up with inflation. Dell’s revenue and earnings are expected to grow substantially year-over-year, as demand for the equipment needed to run AI data centers has boosted sales for a number of hardware makers. Costco shares were little changed ahead of the opening bell, while Dell stock rose more than 4%, boosted by news from last night that it won a $9.7 billion contract from the Pentagon.
FedEx Freight to Join S&P 500 Next Week After Spinoff
FedEx Freight is set to start trading on New York Stock Exchange under the symbol ‘FDXF’ on Monday following a separation from its parent company. FedEx (FDX) announced the plans to spin off the freight business in Dec. 2024 following a restructuring process designed to help FedEx cut costs. FedEx Freight will join the S&P 500 a day after its market debut, S&P Global announced late Wednesday. FedEx Freight will replace EPAM Systems (EPAM), which will move to the S&P SmallCap 600.
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