U.S. stock futures declined on Thursday following another record-breaking surge on Wednesday. Futures of major benchmark indices were lower at the time of writing as peace efforts in the Iran war stalled amid seizures of vessels in the Strait of Hormuz.

On Wednesday, the Dow Jones index closed 341 points higher after President Donald Trump extended the ceasefire indefinitely, citing a "seriously fractured" government in Tehran.

Meanwhile, the 10-year Treasury bond yields stood at 4.313%, and the two-year bond was at 3.808% at the time of writing. The CME Group’s FedWatch tool‘s projections show markets pricing a 99.5% likelihood of the Federal Reserve leaving the current interest rates unchanged in April.

IndexPerformance (+/-)
Dow Jones-0.56%
S&P 500-0.38%
Nasdaq 100-0.31%
Russell 2000-0.48%

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in pre-market on Thursday. The SPY was down 0.38% at $708.50, while the QQQ declined 0.36% to $652.73.

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Stocks In Focus

Tesla

  • Tesla Inc. (NASDAQ:TSLA) reported better-than-expected first-quarter financial results on Wednesday after market close. Tesla reported first-quarter revenue of $22.71 billion, up 16% year-over-year. TSLA declined 3.03% in pre-market trading.
  • TSLA maintains a weak price trend over the short, medium and long terms, as per Benzinga’s Edge Stock Rankings.

Boeing

  • Boeing Co. (NYSE:BA) reported better-than-expected results for the first quarter on Wednesday. The company reported first-quarter revenue of $22.22 billion, up 14% year over year and above the $21.78 billion estimate. BA declined 0.42% in pre-market trading.
  • BA maintains a strong price trend over the short, medium, and long terms, as per Benzinga’s Edge Stock Rankings.

Intel

  • Wall Street expects Intel Corp. (NASDAQ:INTC) to report earnings of $0.01 per share on revenue of $12.37 billion in the first quarter after the closing bell. INTC was up 1.27% in pre-market trading.
  • INTC maintains a strong price trend over the short, medium, and long terms, as per Benzinga’s Edge Stock Rankings.

Texas Instruments

  • Texas Instruments Inc. (NASDAQ:TXN) reported better-than-expected results for the first quarter on Wednesday. The company reported first-quarter revenue of $4.83 billion, up 19% year over year, while earnings per share stood at $1.68. TXN surged 10.67% in pre-market trading.
  • TXN maintains a strong price trend over the short, medium, and long terms, as per Benzinga’s Edge Stock Rankings.

Lockheed Martin

  • Wall Street analysts expect Lockheed Martin Corp. (NYSE:LMT) to report earnings of $6.72 per share on revenue of $18.24 billion in the first quarter before the opening bell. LMT was up 0.42% in pre-market trading.
  • LMT showed a weak price trend over the short and medium terms, but a strong price trend over the long term, as per Benzinga’s Edge Stock Rankings.

ServiceNow

  • Shares of ServiceNow (NYSE:NOW) extended losses to drop more than 13.5% in premarket trading, after falling 14% on Wednesday as the software company flagged a drag in subscription revenues due to the ongoing Middle East conflict.
  • NOW showed strong growth rank but weak price trends across terms, as per Benzinga’s Edge Stock Rankings.

IBM

  • IBM (NYSE:IBM) stock dropped 8.6% in trading before the bell, as the software company beat analyst first-quarter earnings expectations, but maintained its outlook due to the macro uncertainty.
  • IBM ranks high in quality but low in other metrics, along with weak price trends across terms, as per Benzinga’s Edge Stock Rankings.

Cues From Last Session

Information technology, energy and communication services recorded the biggest surge on Wednesday, while real estate, industrials and financials declined.

IndexPerformance (+/-)Value
Dow Jones0.69%49,490.03
S&P 5001.05%7,137.90
Nasdaq Composite1.64%24,657.57
Russell 20000.74%2,785.38

Insights From Analysts

Analysts at Schwab Center of Financial Research highlighted that some investors appear to have a "casino mentality" when it comes to trading, while stating that the market appears to be overbought in the near term.

"This could set things up for a possible pullback in the next week or two as ‘Magnificent Seven' firms report earnings, especially if those earnings don’t live up to lofty expectations. Or if war reports worsen," the firm stated in its note.

"There's still a high level of uncertainty, and the stock market, at all-time highs, is basically putting a near 0% probability of a prolonged war and/or closure of the strait," said Nathan Peterson, director of derivatives research and strategy at the SCFR.

Upcoming Economic Data

  • On Thursday, the weekly Initial Jobless Claims report will be released at 8:30 a.m. ET.
  • April's S&P Global PMI manufacturing and services preliminary readings will also be on investors’ radar.
  • On Friday, the University of Michigan's final Consumer Sentiment Index reading for April will be released at 10 a.m. ET.
  • The New York Fed Staff Nowcast is also due Friday.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading higher in the early New York session by 2.01% to hover around $94.84 per barrel.

Gold Spot US Dollar declined 0.87% to hover around $4,698.39 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.11% higher at the 98.522 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.40% higher at $78,180.93 per coin, as per the last 24 hours.

Asian markets closed lower on Thursday. India's Nifty 50, Hong Kong’s Hang Seng, Australia’s ASX 200 and Japan’s Nikkei 225 indices closed lower while South Korea’s Kospi index surged. European markets were mostly lower in early trade.

Photo courtesy: Shutterstock

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