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Nasdaq Index, Dow Jones, S&P 500 News: Stock Futures Fall on Salesforce Revenue Miss

By:
James Hyerczyk
Updated: May 30, 2024, 12:46 GMT+00:00

Key Points:

  • Salesforce shares fall over 15% after missing revenue expectations and providing weak guidance for Q2.
  • Kohl’s drops 20% pre-market on unexpected Q1 loss, missing revenue and earnings forecasts.
  • Broader market struggles with S&P 500, Nasdaq down 0.7%, Dow off 1.1% Wednesday.
Dow Jones, Nasdaq-100, S&P 500 Index

In this article:

Stock Futures Dip as Salesforce Drags Market

U.S. stock futures are set for another challenging session on Thursday, driven by a significant drop in Salesforce shares following a quarterly revenue miss and subdued guidance.

At 11:59 GMT, Dow futures are trading 38187.00, down 337.00 or -0.87%. S&P 500 Index futures are at 5265.00, down 19.00 or -0.36% and Nasdaq futures are trading 18754.75, down 48.00 or -0.26%.

Salesforce Takes a Hit

Salesforce saw its shares plummet by over 15% after falling short of revenue expectations for the fiscal first quarter. The company also provided weaker-than-expected guidance for the upcoming quarter, further dampening investor sentiment. This performance contrasts sharply with Foot Locker, which surged more than 12% on the back of better-than-expected earnings per share. Best Buy missed Wall Street’s quarterly sales expectations on Thursday as softer demand for consumer electronics persisted.

Kohl’s Slumps on Disappointing Earnings

Kohl’s experienced a significant drop, with shares falling around 20% pre-market after reporting weak earnings and guidance. The retailer posted an unexpected loss of 24 cents per share for the first quarter, while analysts had predicted a profit of 4 cents per share. Revenue also missed expectations, coming in at $3.18 billion compared to the anticipated $3.34 billion. Additionally, Kohl’s forecasted a more significant decline in full-year sales and offered a conservative outlook for annual per-share earnings. This continues a rough year for Kohl’s, with shares already down about 5% in 2024.

Market Sentiment Sours

The broader market struggled on Wednesday, with over 400 stocks in the S&P 500 closing in negative territory. The S&P 500 and Nasdaq Composite each fell by 0.7%, while the Dow Jones Industrial Average dropped 1.1%. Rising 10-year Treasury yields, which exceeded 4.6%, have been a headwind for stocks, making bonds and money market funds more appealing to investors. This environment of persistently high yields has pressured stock valuations, particularly those with extended valuations.

Economic Data in Focus

Thursday’s trading will be influenced by several key economic reports. Investors are anticipating weekly jobless claims numbers and the second reading of the real gross domestic product for the first quarter. However, the week’s main event will be Friday’s release of the personal consumption expenditures price index for April, the Federal Reserve’s preferred inflation gauge.

Market Forecast

Given the current economic indicators and disappointing earnings reports from major companies, the market outlook remains bearish in the short term. The persistent high yields and upcoming economic data releases could continue to exert downward pressure on stock prices. Traders should brace for potential volatility and adjust their strategies accordingly.

Technical Analysis

Daily E-mini S&P 500 Index

E-mini S&P 500 Index futures are lower on Thursday after taking a significant hit the previous session. The downside momentum from the early move indicates a weaker cash market opening. Intense selling pressure today could drive the benchmark into the 50-day moving average at 5216.75. Look out to the downside if this intermediate trend indicator is taken out with conviction.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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