Wall Street's main indexes fell sharply on Monday before news
that Tesla Inc chief Elon Musk was buying Twitter for $44
billion spurred a late rally in the Nasdaq.
Twitter extended gains from the previous session, up 0.5% in
premarket trading, while Tesla also inched higher.
There were some bright spots among companies that reported
earnings, but the overall mood was dull as global growth fears
stoked by China's COVID-19 curbs, the Ukraine war and aggressive
tightening by the Federal Reserve sapped risk appetite.
Ukraine's state-run atomic energy company said Russian missiles
flew at low altitude over Europe's largest nuclear power plant
in southern Ukraine, and reiterated warnings that Russia's
invasion could lead to a "nuclear catastrophe".
At 07:13 a.m. ET, Dow e-minis were down 149 points, or 0.44%,
S&P 500 e-minis were down 19 points, or 0.44%, and Nasdaq 100
e-minis were down 69.25 points, or 0.51%.
Nearly a third of the companies listed on the S&P 500 index are
expected to report this week, with Alphabet Inc and Microsoft
Corp publishing results after the closing bell on Tuesday.
Market-leading growth stocks have been hammered this year as
investors fear higher interest rates will erode their future
earnings, while China's lockdown and hawkish pivot by major
central banks have overshadowed what has been a
better-than-expected earnings season so far.
Of the 102 companies in the S&P 500 that reported earnings
through Monday, 77.5% topped analysts' profit expectations,
according to Refinitiv data. In a typical quarter, 66% beat
estimates.
United Parcel Service Inc gained 1.9% after it reported a rise
in quarterly adjusted profit, while industrial giant 3M Co rose
0.9% after it topped profit estimates.
General Electric Co fell 3.5% after forecasting full-year
earnings at the low end of its previous estimate, as persistent
supply chain disruptions and rising freight and raw material
costs take a toll on the industrial conglomerate.
Consumer confidence report for April and durable goods orders
data for March will be released later in the day.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju
Samuel)
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