Earnings season has kicked off for the Magnificent Seven tech giants that have been dominating stock market activity, with Tesla (TSLA) set to report results after the closing bell. Investors are eagerly watching to see if robotaxis or a cheaper car model will mark the electric vehicle maker’s future growth. General Motors (GM) shares are on the rise after an earnings beat and guidance lift, while PepsiCo (PEP) managed to post an earnings beat despite a Quaker Foods recall.
Apple (AAPL) faced a setback as its China iPhone sales plunged 19% in the first quarter, allowing rival Huawei to catch up. The U.S. Federal Trade Commission (FTC) has filed a lawsuit to prevent luxury giant Tapestry (TPR) from buying rival Capri Holdings (CPRI) in an $8.5 billion deal, citing concerns about a decline in competition in the “accessible luxury” handbags market.
U.S. stock futures are on the rise, while gold prices are falling and trading around $2,310 an ounce as fears of a broader Middle East conflict ebb and investors shift their focus to earnings. Here’s a breakdown of what investors need to know today:
1. Tesla is expected to report Q1 declines, with revenue expected to fall amid declines in deliveries. Investors are keen to see where the company sees itself going as it embarks on price cuts to compete with Chinese rivals.
2. GM shares surged after the car maker posted first-quarter results that exceeded expectations and raised its 2024 profit guidance.
3. PepsiCo reported better-than-expected first-quarter profit, despite a recall of products at Quaker Foods in the U.S. during the period.
4. Apple’s China iPhone sales took a hit in the first quarter, with market share falling to third place behind Huawei in the Chinese market.
5. The FTC has sued to block Tapestry’s $8.5 billion purchase of Capri Holdings, citing concerns about competition in the luxury handbags market.
Overall, investors are keeping a close eye on these developments as they navigate the current market landscape.
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