On Thursday, U.S. stock index futures gained as heavyweight Tesla (NASDAQ: TSLA) soared on solid earnings. United Airlines forecast a surprise profit in the upcoming quarter, lifting the stock of other airlines.
The world’s most valuable carmaker rose 7.7% in premarket trade as higher pricing helped it overcome supply-chain instability and increased expenses. The previous session saw a selloff in technology and growth companies due to large losses in Netflix Inc (NASDAQ: NFLX) shares following its disappointing earnings, pushing the tech-rich Nasdaq down more than 1%. United Airlines Holdings (NASDAQ: UAL) Inc. was another bright spot, with shares rising 7.5 percent after the company anticipated profit for the second quarter and indicated increasing travel demand might deliver the company’s best quarterly revenue ever.
Impact of Tesla on American Airlines
American Airlines Group Inc (NASDAQ: AAL), Southwest Airlines Co (NYSE: LUV), and Delta Air Lines Inc (NYSE: DAL) all increased between 2.5 and 4.8 percent. According to the data, analysts predict S& P 500 earnings growth of 6.5 percent in the first quarter, compared to a 32.1 percent increase in the preceding quarter. Investors will be looking for indications of monetary policy tightening intentions in Federal Reserve Chair Jerome Powell’s address later in the day, with many predicting a 50 basis point rate rise next month. High-growth equities have been hurt by a jump in Treasury rates due to soaring inflation and hawkish words from Fed members, putting pressure on U.S. stocks this month.
At 8:30 a.m. E.T., the first round of state unemployment compensation claims will become public. For the week ending April 16, claims should drop 5,000 to a seasonally adjusted 180,000. Dow e-minis were up 211 points, or 0.6%, S&P 500 e-minis were up 34.75 points, or 0.78 percent, and Nasdaq 100 e-minis were up 155.75 points, or 1.11 percent, at 06:42 a.m. ET. AT&T Inc (NYSE: T) gained 1.5 percent after reporting higher core cellular revenue in the first quarter, owing to the telecom giant’s aggressive growth of fiber internet and 5G services.