WASHINGTON (dpa-AFX) - The major U.S. index futures are currently pointing
to a sharply lower open on Thursday, with stocks likely to come under pressure
following the lackluster performance seen in the previous session.

A negative reaction to earnings news from Meta Platforms (META) is likely to
weigh on Wall Street, as the Facebook parent is plunging by 15.5 percent in
pre-market trading.

Meta Platforms reported first quarter results that beat estimates on both the
top and bottom lines but provided disappointing second quarter revenue guidance.

Tech giant IBM Corp. (IBM) is also likely to come under pressure after reporting
weaker than expected first quarter revenues. IBM also announced a deal to
acquire HashiCorp (HCP) for $35 per share in cash, representing an enterprise
value of $6.4 billion.

On the other hand, fellow Dow components Merck (MRK) and Honeywell (HON) are
seeing pre-market strength after reporting first quarter results that exceeded
analyst estimates.

The futures saw further downside following the release of a Commerce Department
report showing the U.S. economy grew by much less than expected in the first
quarter of 2024.

The Commerce Department said gross domestic product increased by 1.6 percent in
the first quarter after surging by 3.4 percent in the fourth quarter of 2023.
Economists had expected GDP to jump by 2.5 percent.

The notable slowdown in GDP growth primarily reflected decelerations in consumer
spending, exports, and state and local government spending and a downturn in
federal government spending.

Stocks turned in a lackluster performance during trading on Wednesday following
the strong upward move seen to start the week. After moving to the upside early
in the session, the major averages spent the day bouncing back and forth across
the unchanged line.

The major averages eventually ended the day narrowly mixed. While the Dow edged
down 42.77 points or 0.1 percent to 38,460.92, the S&P 500 crept up 1.08 points
or less than a tenth of a percent to 5,071.63 and the Nasdaq inched up 16.11
points or 0.1 percent to 15,712.75.

A positive reaction to the latest corporate earnings news initially contributed
to an extended rebound on Wall Street following the considerable weakness seen
last week.

Shares of Tesla (TSLA) spiked by 12.1 percent even though the electric vehicle
maker reported weaker than expected first quarter results.

The surge by Tesla came after CEO Elon Musk said the company plans to start
production of a new affordable model by early 2025.

Semiconductor company Texas Instruments (TXN) also saw significant strength
after reporting first quarter results that beat expectations on both the top and
bottom lines.

Shares of Visa (V) and Mattel (MAT) also moved to the upside after the companies
reported better than expected quarterly results.

Buying interest waned shortly after the start of trading, however, with traders
still worried about the outlook for interest rates ahead of next week's Federal
Reserve meeting.

While the Fed is widely expected to leave interest rates unchanged, traders will
be looking for clues about the possibility of future rate cuts.

Later this week, the Commerce Department is due to release a report on personal
income and spending that includes readings on inflation said to be preferred by
the Fed.

Traders may also have been reluctant to make significant moves ahead of more
big-name tech earnings in the coming days.

On the U.S. economic front, the Commerce Department released a report showing
new orders for U.S. manufactured durable goods surged by more than expected in
the month of March.

The report said durable goods orders soared by 2.6 percent in March after
climbing by a downwardly revised 0.7 percent in February.

Economists had expected durable goods orders to spike by 2.3 percent compared to
the 1.3 percent jump that had been reported for the previous month.

Excluding a surge in orders for transportation equipment, durable goods orders
crept up by 0.2 percent in March after inching up by 0.1 percent in February.
Ex-transportation orders were expected to rise by 0.3 percent.

Transportation stocks showed a substantial move to the downside on the day,
dragging the Dow Jones Transportation Average down by 2.3 percent.

Considerable weakness was also visible among housing stocks, as reflected by the
1.2 percent loss posted by the Philadelphia Housing Sector Index.

Pharmaceutical and retail stocks also saw some weakness, while semiconductor
stocks turned in a strong performance following the upbeat results from Texas
Instruments.

Reflecting the strength in the semiconductor sector, the Philadelphia
Semiconductor Index climbed by 1.1 percent on the day.

Commodity, Currency Markets

Crude oil futures are climbing $0.45 to $83.26 a barrel after falling $0.55 to
$82.81 a barrel on Wednesday. Meanwhile, after slipping $3.70 to $2,338.40 an
ounce in the previous session, gold futures are edging down $1 to $2,337.40 an
ounce.

On the currency front, the U.S. dollar is trading at 155.63 yen versus the
155.35 yen it fetched at the close of New York trading on Wednesday. Against the
euro, the dollar is valued at $1.0695 compared to yesterday's $1.0699.

Asia

Asian stocks fell in thin holiday trading on Thursday, with the Australian and
New Zealand markets closed for Anzac Day.

Investor sentiment was hit as Facebook parent Meta Platforms posted
better-than-expected earnings but warned that expenses would be higher this year
due to 'aggressive' spending on artificial intelligence (AI).

Investors also looked ahead to the release of U.S. GDP data for the first
quarter as well as earnings reports from major companies across various sectors,
including tech giants like Intel, Microsoft, and Alphabet, for more direction.

Chinese stocks edged up slightly, with the benchmark Shanghai Composite Index
rising 0.3 percent to 3,052.90.

Hong Kong's Hang Seng Index rose 0.5 percent to 17,284.54 after reports global
funds are raising their allocation to China on hopes for economic and earnings
recovery.

Japanese markets tumbled as the yen weakened beyond 155 per dollar for the first
time in more than three decades, raising speculation about the Bank of Japan
intervening in the forex market to prop up the ailing currency.

The Nikkei 225 Index plunged 2.2 percent to 37,628.48 after a three-day rally.
The broader Topix Index dropped 1.7 percent to 2,663.53 as the Bank of Japan
kicked off its two-day policy meeting.

Tech stocks and exporters lost ground, with SoftBank Group, Advantest, Tokyo
Electron and Toyota Motor falling 2-3 percent.

Camera maker Canon lost 8.4 percent after posting a drop in first-quarter
operating profit. Robot maker Fanuc tumbled 3.4 percent after its annual profit
forecast came in below expectations.

Seoul stocks fell sharply, with the Kospi average ending down 1.8 percent at
2,628.62. Nvidia supplier SK Hynix plummeted 5.1 percent despite returning to a
profit in the first quarter on the back of rising global demand for premium
memory chip products used for AI computing.

Data showed earlier in the day that the South Korean economy grew at the fastest
pace in more than two years in the first quarter on robust exports.

Europe

European stocks are mixed on Thursday as a disappointing earnings report from
Facebook parent Meta Platforms gave way to caution ahead of earnings results
from some of biggest and most important growth and tech companies in the U.S.

U.K. stocks have outperformed on the back of strong earnings reports and news of
a takeover approach for Anglo American.

While the U.K.'s FTSE 100 Index is up by 0.7 percent, the German DAX Index is
down by 0.5 percent and the French CAC 40 Index is down by 0.8 percent.

Anglo American has soared after mining giant BHP Group proposed a takeover of
the rival in a deal that seeks to create world's biggest copper miner with
around 10 percent of global output.

Online takeaway food company Delivery Hero has also surged after reporting
strong first quarter results and raising its full-year revenue outlook.

Sanofi has also jumped. The pharmaceutical giant reiterated its outlook for 2024
adjusted earnings per share (EPS) to decrease by a low single-digit percentage,
excluding currency fluctuations.

Barclays has also moved sharply higher in London after the lender reported a
smaller-than-expected drop in first-quarter profit.

Unilever has also rallied. The consumer goods giant beat first-quarter sales
forecasts and kept its full-year guidance for underlying sales growth within its
multi-year range of 3-5 percent.

Meanwhile, Deutsche Bank shares have fallen despite the German lender posting
better-than-expected profit growth in the first quarter amid an ongoing recovery
in its investment banking unit.

French spirits maker Pernod Ricard has also tumbled after reporting worse than
expected fiscal third quarter sales.

Software maker Dassault Systemes has also moved sharply lower despite reporting
solid first-quarter results and backing guidance.

Nestle has also moved to the downside after the Swiss food and drinks giant
missed first-quarter organic sales growth estimates.

In economic news, German consumer confidence is set to rise again in May, a
survey conducted by the market research group GfK and the Nuremberg Institute
for Market Decisions (NIM) showed earlier today.

The forward-looking consumer sentiment index rose to -24.2 in May from revised
-27.3 in April. The reading was expected to rise moderately to -25.9.

French manufacturing confidence weakened in April largely due to the worsening
order books, monthly survey results from the statistical office INSEE revealed.

The manufacturing confidence index fell more-than-expected to 100 in April from
an upwardly revised 103 in March. The reading was seen at 102.

U.S. Economic Reports

The Labor Department released a report on Thursday showing an unexpected
decrease by first-time claims for U.S. unemployment benefits in the week ended
April 20th.

The report said initial jobless claims fell to 207,000, a decrease of 5,000 from
the previous week's unrevised level of 212,000. The dip surprised economists,
who had expected jobless claims to inch up to 214,000.

The Labor Department said the less volatile four-week moving average also edged
down to 213,250, a decrease of 1,250 from the previous week's unrevised average
of 214,500.

A separate report released by the Commerce Department on Thursday showed the
U.S. economy grew by much less than expected in the first quarter of 2024.

The Commerce Department said gross domestic product increased by 1.6 percent in
the first quarter after surging by 3.4 percent in the fourth quarter of 2023.
Economists had expected GDP to jump by 2.5 percent.

The notable slowdown in GDP growth primarily reflected decelerations in consumer
spending, exports, and state and local government spending and a downturn in
federal government spending.

At 10 am ET, the National Association of Realtors is scheduled to release its
report on pending home sales in the month of March. Pending home sales are
expected to rise by 0.3 percent in March after jumping by 1.6 percent in
February.

The Treasury Department is due to announce the results of this month's auction
of $44 billion worth of seven-year notes at 1 pm ET.

Stocks In Focus

Shares of American Airlines (AAL) are moving sharply higher in pre-market
trading after the airline reported a wider than expected fiscal quarter loss but
provided upbeat earnings guidance for the current quarter.

Restaurant chain Chipotle Mexican Grill (CMG) is also likely to see initial
strength after reporting first quarter results that exceeded expectations.

On the other hand, shares of Southwest Airlines (LUV) are plummeting in
pre-market trading after the airline reported disappointing first quarter
results and warned about the impact of Boeing's (BA) airplane delays.

Construction equipment maker Caterpillar (CAT) may also come under pressure
after reporting first quarter earnings that beat estimates but weaker than
expected revenues.



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