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Pre-Market: Tesla Shares Fall Following Poor Earnings; US Jobless Claims Tick Lower

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Janet Yellen addresses Congress for a second day.

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Stock futures pointed toward a lower open on Thursday morning. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.01% to 16,466. Futures on the S&P 500 (INDEXSP:.INX) were down 0.17% to 1,871.00. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.25% to 3,531.50.

Stocks

Earnings season continued with reports from Toyota (NYSE:TM), Tesla (NASDAQ:TSLA), and Keurig Green Mountain (NASDAQ:GMCR). Toyota clocked a record annual profit of $17.9 billion and over 10 million vehicles sales in the fiscal year ending in March; however, forecasts point to a slower FY 2015. Tesla's higher-than-expected first-quarter earnings failed to motivate investors as the company set a poor outlook for the second quarter. K-Cup maker Keurig Green Mountain beat estimates with $1.1 billion in sales and announced a new partnership with J.M. Smucker Co. (NYSE:SJM) to sell Smucker coffee brands such as Folgers for the Keurig brewing system. Tesla shares were down 8.15% in pre-market trading. Keurig Green Mountain was up 5.27%.

Investors await a number of earnings reports today, including News Corp (NASDAQ:NWSA) and Wendy's (NASDAQ:WEN). News Corp saw advertising revenue and subscription revenue decline in the previous quarter, and investors will be looking for ways the company is navigating the embattled publishing sector. Wendy's will deliver its first quarterly earning report of the year following a strong 2013 thanks to its new Pretzel Bacon Cheeseburger offering. Wendy's has managed to stay ahead of its competitors McDonald's (NYSE:MCD) and Burger King (NYSE:BKW) in same-store sales growth in the past four quarters. Meanwhile, McDonald's will report its April sales figures today. Shares of Wendy's were up 6.24% ahead of the open.

Ford (NYSE:F) and Gilead Sciences (NASDAQ:GILD) both announced share buybacks yesterday. Ford will repurchase up to 116 million shares of common stock currently valued at $1.8 billion. Ford says it's repurchasing shares to offset the dilutive effect of potential conversion of senior convertible notes in 2016. Gilead has authorized a $5 billion share buyback program, which adds to another $5 billion share buyback program announced in January 2011. Shares of Ford were up 1% in pre-market trading. Gilead was up 0.42%.

Barclays (NYSE:BCS) plans to cut 7,000 jobs at its investment bank, bringing the total number of jobs cut throughout the firm to 19,000 by 2016. That includes 12,000 that Barclays announced in February. Barclays, which has been down 10.5% this year, rose 5.57% in pre-market trading.

Economy

Initial jobless claims fell by 26,000 people to a seasonally adjusted 319,000 in the past week, beating analyst expectations that claims would fall by only 20,000 jobs. The four-week moving average for jobless claims, however, was higher, at 324,750.

Philadelphia Fed President Charles Plosser suggested ways the central bank could be more transparent in a speech to the Council on Foreign Relations in New York this morning. Federal Reserve board member Daniel Tarullo also spoke this morning, addressing an audience at the 50th Annual Conference on Bank Structure and Competition. At 9:30 a.m. EDT, Janet Yellen will continue her testimony before Congress, today speaking to the Senate Banking Committee. At 9:45 a.m., the Bloomberg Consumer Comfort Index will be released. The results of the $16 billion 30-year note auction will be available at 1:00 p.m. The Fed will release the money supply and its balance sheet at 4:30 p.m.

Global Markets

Asian stocks pulled off their largest decline in seven weeks after the Federal Reserve pledged to continue its support of the US economy and China reported a climb in trade. Chinese trade grew unexpectedly in April, with the country sporting a trade surplus of $18.46 billion. In Vietnam, stocks suffered their biggest decline in a decade, as tension with China in the South China Sea hit a breaking point when a China Coast Guard ship shot a water cannon at a Vietnamese vessel. Meanwhile, in Australia the jobless rate held at 5.8% as the economy continued its recovery.

In Europe, stocks gained for the first time in five days, following a decision by EU policy makers to leave rates unchanged. In the UK, the Bank of England also left interest rates unchanged at 0.5%. Meanwhile, tensions in the Ukraine eased as pro-Russian separatists in the country said they would consider Putin's request to postpone an upcoming referendum on independence.

Twitter: @brokawbrokaw
No positions in stocks mentioned.
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