NASDAQ 100, Dow Jones, S&P 500: Futures Rise; Penn Entertainment, Lyft Steal Spotlight

Highlights

• Penn Entertainment launches ESPN Bet, stock up 12%.
• Lyft’s strong Q2 earnings overshadowed by Q4 outlook.
• Rivian’s optimistic 2023 production forecast.

Overview

U.S. stock futures signaled a positive start for Wall Street on Wednesday, following a dip in the last trading session.

At 10:15 GMT, the Dow Jones, S&P 500, and Nasdaq-100 futures were all up, by 0.20%, 0.26%, and 0.29% respectively.

Amid these moves, Penn Entertainment made headlines with its upcoming online sportsbook in collaboration with ESPN, named ESPN Bet, expected to launch this fall. The announcement led to a robust 12% surge in its stock.

Lyft’s Q2 Earnings Beat Expectations, But Shares Dip on Q4 Outlook

Lyft, the renowned ride-hailing platform, showcased strong quarterly earnings, exceeding analysts’ predictions, driving the stock up by an initial 14%. Earnings per share were 16 cents, a stark contrast to the anticipated loss of 1 cent. Their quarterly revenue, reaching $1.02 billion, was consistent with estimates. However, concerns emerged after Lyft’s Q4 forecasts suggested a weaker-than-expected revenue growth and a marginal decline in earnings margin. Additionally, despite high demand for their service, the revenue per rider dropped by 5%, attributed to promotional pricing.

Rivian Automotive Ups Production Guidance, Outpacing Previous Estimates

Electric vehicle manufacturer, Rivian Automotive, announced an optimistic production forecast for 2023. The company now aims to produce roughly 52,000 vehicles, marking a significant leap from its 2022 production and surpassing its initial estimate of 50,000 vehicles for the upcoming year.

Market Recap: Recent Downslide But Optimism Prevails

While Tuesday saw stocks falter, with the Dow, S&P 500, and Nasdaq Composite closing lower by 0.45%, 0.42%, and 0.79% respectively, it wasn’t all gloom. The Dow’s decline was much less severe than its intra-day drop of approximately 465 points. The market mood was partly affected by Moody’s recent downgrade of several regional banks. Some market players view this as an alarm for potential challenges ahead, but others believe a minor pullback is reasonable considering this year’s stellar equity rally.

Upcoming Earnings to Watch

Investors are keenly awaiting earnings reports from Roblox, expected before Wednesday’s opening bell, and entertainment mogul Disney alongside casino operator Wynn Resorts, both scheduled to release their quarterly figures post trading hours.