Nasdaq 100, Dow Jones, S&P 500: GM to Announce Earnings Before the Bell

Highlights

• Big Tech and consumer discretionary companies to report earnings
• First Republic Bank’s Q1 deposits down 40%, plans to cut headcount
• GM expected to announce Q1 earnings, cut costs, and ramp up EV production

Overview

The major U.S. stock index futures are down early Tuesday as investors awaited corporate earnings announcements from several Big Tech and consumer discretionary companies.

Meanwhile, First Republic Bank‘s latest quarterly results revealed a 40% decrease in deposits to $104.5 billion in the first quarter, causing its shares to slide by about 20%. The bank plans to reduce expenses, including cutting headcount by 20% to 25% in Q2.

At 09:35 GMT, blue chip Dow futures are trading 33862.10, down 139.00 or -0.41%. The benchmark S&P 500 futures are at 4138.75, down 20.75 or -0.50% and the tech-weighted NASDAQ futures are at 12998.50, down 58.00 or -0.44%.

Corporate Giants Report Q1 Earnings

Before the opening bell, UPS, 3M, Verizon, JetBlue, General Motors, McDonald’s, and PepsiCo will announce their quarterly earnings. Amazon and Microsoft will report after the closing bell. Investors anticipate lower growth momentum as 2023 progresses. They will be looking for signs of deterioration or healthy revenues, margins, earnings, and guidance.

Professionals Shift to Defensive Portfolio

Many money managers have adopted a defensive portfolio orientation due to fundamental factors such as slowing growth, a more restrictive set of central bank policies, and the expectation that growth will slow and inflation will come under control, allowing the Federal Reserve to pause the rate hike cycle.

Housing Data May Impact Tuesday’s Trade

On Tuesday, investors will receive new home sales data for March and S&P/Case-Shiller 20-city home price index data for February, as well as consumer confidence data for April, to gauge the state of the housing market.

GM to release Q1 earnings

General Motors (GM) is set to release its first-quarter earnings, which are expected to meet the company’s expectations. CFO Paul Jacobson revealed that sales had increased by 18%, and there had been a rise in market share without price or incentive hikes.

Wall Street expects an 8.3% increase in revenue. This will help offset a decline in adjusted earnings per share from last year. GM anticipates net income attributable to stockholders of $8.7-10.1bn.

The company aims to cut $2bn in structural costs by 2024 using a broad employee buyout program. Additionally, 5,000 workers have so far opted for the scheme. GM’s EV production, which has been slow to ramp up, is also expected to feature in the earnings release, as well as any comments on Tesla’s price cuts.

Analysts are optimistic about the quarter’s results for the automotive industry. Although there are broader economic concerns that may temper investor reactions to optimistic outlooks.

For a look at all of today’s economic events, check out our economic calendar.