Stock Market Futures Extend Losses Ahead Of Consumer Price Index Release Due Wednesday
U.S. stock futures are on the decline prior to this week’s opening bell. This follows a mostly turbulent start to May for stocks across the board. Among the key market movers to look out for this week would be the U.S. Bureau of Labor Statistics’s April Consumer Price Index (CPI). For now, consensus economist projections suggest that we could see a year-over-year increase of 8.1%. Should this be the case, it would mark a slight slowdown from the 8.5% increase seen in March.
Nevertheless, there remain plenty of macroeconomic factors weighing in on markets now as well. Explaining this in detail is Nomura (NYSE: NMR) VP and U.S. economist, Robert Dent. He notes, “I think right now investors have to kind of weigh the two outcomes we are facing, which is basically a soft landing, where the Fed can get inflation under control without driving the economy into a recession, and a hard landing, where the Fed has to over-tighten and push growth into negative territory.“
Dent goes on to say, “I also think part of what’s going on is, markets may have focused a little too much on Chair Powell’s comments on Wednesday pushing back against 75 basis point hikes and missed the broader point of the meeting, which was that the Fed is still very much in a mode that [they will do] whatever it takes to get inflation under control, I think they are prepared to hike rates to a very constrictive level.” Aside from all this, investors also have another notable week of earnings ahead as well. As of 4:43 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 1.23%, 1.46%, and 1.66% respectively.
AMC Entertainment Earnings Preview
AMC Entertainment (NYSE: AMC) would be among the firms to look out for in the stock market today. Accordingly, this would be thanks to the company being set to host its latest earnings call after the closing bell. Overall, this movie theater giant is a key name from the initial meme stock trading frenzy. Despite losing most of its gains from this, investors looking to bet on the return of movie screenings would be considering AMC stock now. Even so, AMC seems to be expecting a bumpy road to recovery in the meantime.
As it stands, Wall Street is currently guiding for a loss per share of $0.68 on revenue of $736.2 million. For starters, this would be an improvement of 50% on the earnings front year-over-year. Also, a quarterly revenue of $736.2 million would translate to sizable gains of about 397% over the same period. However, in comparison to the previous two quarters, this is a deceleration in terms of revenue. Another key thing investors will likely be looking at today would be AMC’s total moviegoer count. This would be a major indication of the company’s recovery towards pre-pandemic levels. For the previous quarter, AMC recorded almost 60 million customers, about 64% of its 2019 levels. As such, it would not surprise me to see AMC stock making the rounds in the stock market later today.
Upstart To Report Earnings After Closing Bell: What To Know
Another company to note on the earnings front today would be Upstart (NASDAQ: UPST). For the most part, the company employs an artificial intelligence (AI)-based digital loan platform to serve its clients. The likes of which include a vast total addressable market ranging from small businesses to consumers looking to make personal loans. Through its partnerships with banks and credit unions, Upstart aims to provide optimal financing solutions for its clients using AI. Setting the company aside from the competition would be its non-conventional means of assessing creditworthiness. This would include factors such as education and employment.
Regarding its upcoming earnings report later today, consensus analyst estimates suggest persisting upwards momentum for Upstart. Diving in, current forecasts point towards the company seeing an earnings per share of $0.53 alongside revenue of $300.13 million. Should this be the case, it would add up to massive year-over-year leaps of about 140% and 147% respectively.
For one thing, Upstart does not seem to be slowing down in the least bit as well. As of last week, the company is now working with Firstmark Credit, the oldest state-chartered credit union in San Antonio, Texas. This alongside its ongoing expansion into the auto loans space could further bolster Upstart’s long-term growth sustainability. With all of this in mind, it would not surprise me to see investors tuning into UPST stock now.
Activist Investor Third Point LLC Increases Stake In Shell
According to a Reuters report, activist investor Dan Loeb’s Third Point LLC is increasing its $750 million stake in Shell (NYSE: SHEL). This would serve to add to the pressure Shell faces from Third Point to split up its core operations. In detail, Loeb’s investment firm is suggesting that Shell breaks off its liquefied natural gas (LNG), renewable energy, and marketing businesses. In doing so, this would essentially serve to better differentiate its carbon-focused and greener energy alternatives. According to Loeb, SHEL stock already trades at an attractive value, but he also notes that “proper management” could result in further gains.
According to a letter from Third Point, “This move allows greater flexibility to modify its portfolio (either through asset sales or spin-offs) and allows for a more efficient return of capital, specifically via share repurchases.” Not to mention, the firm also highlights the growing demand for secure energy sources in Europe amidst geopolitical conflicts. Accordingly, Shell’s LNG business would remain highly viable in such a market. When you pair all this with the company’s recent record first-quarter profit figures, we could be looking at exciting times ahead for Shell. While there is no confirmation of a split as of now, SHEL stock could be in focus at today’s opening bell because of this news.
Notable Stock Market Earnings On Tap Today
At the same time, there is no shortage of variety in terms of earnings today as well. In today’s pre-market hours, Palantir (NYSE: PLTR). BioNTech (NASDAQ: BNTX), Tyson Foods (NYSE: TSN), Coty (NYSE: COTY), and Duke Energy (NYSE: DUK) are set to report.
Alternatively, for those keen on earnings calls after today’s market close, there are plenty of firms to consider as well. On the health care side, we have Novavax (NASDAQ: NVAX) and Clover Health (NASDAQ: CLOV) on tap. Aside from that, there is also Suncor Energy (NYSE: SU) and Plug Power (NASDAQ: PLUG) representing the renewable energy space today. Other names reporting earnings at these hours include Aterian (NASDAQ: ATER), Tattooed Chef (NASDAQ: TTCF), Blink Charging (NASDAQ: BLNK), and Lemonade (NYSE: LMND). Safe to say, investors have plenty of stock market news to keep up with at this week’s opening bell.