Stock futures are pointing higher on Thursday following the Federal Reserve's decision to raise interest rates to the highest level in over 22 years. However, many experts on Wall Street believe that this is the end of the hiking cycle for the central bank.
Meta Platforms Reports Strong Q2 Earnings
Shares of Meta Platforms (META) have risen by 7.7% in premarket trading after the parent company of Facebook, Instagram, WhatsApp, and Threads released better-than-expected second-quarter earnings. Additionally, Meta announced that it anticipates third-quarter revenue of $32 billion to $34.5 billion, surpassing Wall Street estimates of $31.2 billion.
According to Meta CEO Mark Zuckerberg, "We had a good quarter. We continue to see strong engagement across our apps and we have an exciting roadmap ahead. This includes the launch of Llama 2, Threads, Reels, new AI products, and Quest 3 this fall."
Chipotle Mexican Grill Faces Revenue Shortfall
On the other hand, Chipotle Mexican Grill (CMG) has declined by 8.8% after its second-quarter earnings exceeded expectations, but revenue fell short at $2.51 billion. Same-store sales growth was also slightly lower than projected, increasing by 7.4% in the quarter compared to the anticipated 7.5%.
ServiceNow Exceeds Expectations, Falls in Trading
ServiceNow (NOW) has posted better-than-expected earnings in the second quarter and has raised its full-year outlook. However, the stock is currently falling by 2.3% in premarket trading. Alongside its strong performance, ServiceNow has announced two significant additions to its generative artificial intelligence tools suite and has formed an alliance with Nvidia (NVDA) and Accenture (ACN) to support companies in developing generative AI software.
Lam Research (LRCX) Reports Strong First-Quarter Revenue
Lam Research (LRCX) shares rose 2.7% in premarket trading following the company's announcement of its fiscal first-quarter revenue expectations. The chip equipment manufacturer forecasts revenue between $3.1 billion and $3.7 billion, slightly lower than analysts' expectations of $3.3 billion. Additionally, Lam Research expects adjusted earnings in the range of $5.30 to $6.80 per share, surpassing analysts' predictions of $5.56 per share.
Shell (SHEL) Announces Disappointing Second-Quarter Results
Shares of Shell (SHEL) declined 1.3% in premarket trading as the oil company reported second-quarter adjusted earnings of $5.1 billion, which fell short of expectations. Weaker oil and natural-gas prices, lower refining margins, and reduced volumes impacted Shell's financial performance. Despite this setback, the company plans to repurchase $3 billion of its stock and raise its dividend.
Align Technology (ALGN) Experiences 13% Increase in Share Price
Align Technology (ALGN), the creator of clear tooth straighteners, witnessed a notable 13% surge in its shares after reporting stronger-than-expected adjusted earnings for the second quarter. The company anticipates third-quarter revenue between $990 million and $1.01 billion, aligning with consensus estimates.
Upcoming Earnings Reports from Prominent Companies
On Thursday, before the market opens, Mastercard (MA), AbbVie (ABBV), McDonald’s (MCD), Royal Caribbean (RCL), Comcast (CMCSA), Honeywell (HON), and Bristol Myers Squibb (BMY) are set to release their earnings reports. Following the market close, reports will be issued by Ford (F), T-Mobile (TMUS), Intel (INTC), and KLA Corp. (KLAC).
For more information, please refer to our financial section.
