The Market News Today: Stock Futures Slide on Salesforce Revenue Miss Ahead of GDP Data

James Hyerczyk
Updated: May 30, 2024, 08:33 GMT+00:00

Key Points:

  • Revised GDP for Q1 is expected to show growth between 1.3% and 1.5%, down from 3.4% in Q4.
  • U.S. stock futures dropped Thursday as Salesforce shares fell 16% on a revenue miss and weak guidance.
  • Wall Street analysts are positive about Dollar General's Q1 earnings, forecasting a 6.5% revenue increase.
  • U.S. Treasury yields rose Thursday, with the 10-year yield climbing to 4.614%.
  • Gold prices slipped for a second session as the U.S. dollar strengthened and Treasury yields increased.
The Market News Today

In this article:

Revised GDP Expected to Show Slower Q1 Growth

The Bureau of Economic Analysis projected a 1.6% annual GDP growth for Q1, down from 3.4% in Q4. A revised estimate, expected Thursday, is likely to show growth between 1.3% and 1.5%. Analysts suggest the data will indicate moderating but not weakening activity. Core PCE data for April, due Friday, is expected at +0.3%, highlighting the significance of core inflation metrics emphasized by JP Morgan fixed-income experts.

Stock Futures Drop as Salesforce Misses Revenue Targets

U.S. stock futures are lower early Thursday as Salesforce shares fell 16% on a revenue miss and weak guidance. American Eagle Outfitters also dropped 10% after missing revenue forecasts. Investors await weekly jobless claims and GDP data. Key economic data this week includes the PCE price index report. Earnings from Best Buy, Dollar General, Dell Technologies, Costco, Gap, and Nordstrom are expected Thursday.

Analysts Upbeat on Dollar General Ahead of Q1 Earnings

Wall Street analysts are generally positive about Dollar General’s upcoming Q1 earnings report, with a consensus Buy rating. UBS Global Research analyst Michael Lasser expects the company to demonstrate continued sales progress despite challenges like timing shifts, unfavorable weather, and higher labor costs. Analysts forecast Q1 earnings of $1.57 per share, a 32.9% decline year-over-year, with revenue projected at $9.9 billion, a 6.5% increase.

U.S. Treasury Yields Rise as Investors Assess Economic Outlook

U.S. Treasury yields increased on Thursday as investors evaluated economic conditions and a weak five-year note auction. The 10-year yield rose over 7 basis points to 4.614%, and the 2-year yield climbed 2 basis points to 4.975%. The poor auction, with a bid-to-cover ratio of 2.3, contributed to the rise. Investors are also awaiting economic data, including the Fed’s preferred inflation gauge, and remarks from Fed officials for insights on future interest rate moves.

Gold Prices Slip as Dollar Strengthens, Treasury Yields Rise

Gold prices fell for a second session on Thursday as the U.S. dollar and Treasury yields climbed ahead of key inflation data. The stronger dollar, up 0.5%, made gold less attractive to non-dollar holders. Benchmark 10-year bond yields remained near multi-week highs. Investors anticipate a prolonged high-interest-rate environment, shifting focus to U.S. yields. Gold has dropped over $100 since its May 20 record high. Traders await the Fed’s preferred inflation measure, due Friday, for further rate hike insights.

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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