US stock futures climb as Tesla restores faith in season after Netflix shock

US stock index futures advanced Thursday, as Tesla Inc.’s banner earnings report relieved investors a day after shares of Netflix Inc. plunged on disappointment over the streaming giant’s results.

What’s happening
  • Futures on the Dow Jones Industrial Average YM00
    rose 226 points, or 0.6%, to 34,305.

  • S&P 500 futures ES00
    gained 37.50 points, or 0.8%, to trade at 4,493.

  • Nasdaq-100 futures NQ00
    jumped 162 points, or 1.2%, to 14,166.75.

On Wednesday, stocks turned in a mixed performance, with the Dow DJIA
rising 250 points, or 0.7, while the S&P 500 SPX
shed less tahn 0.1% and the Nasdaq Composite COMP
dropped 1.2%.

What’s driving markets

Tesla
shares rose 7% in premarket action as the electric vehicle maker posted better-than-forecast earnings, thanks to price hikes.

The Tesla results helped to offset the shock from fellow megacap technology giant Netflix NFLX,
which slumped 35% on Wednesday after forecasting it will lose 2 million subscribers in the current quarter.

Meanwhile, airline shares were lifted after another round of upbeat results from major carriers.

“While earnings season so far has been mixed, Tesla’s numbers last night did much to restore optimism, especially at a tricky time for the company,” said Chris Beauchamp, chief market analyst at IG Group.

Traders also will be focusing on Washington, DC, where Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde will join a panel discussion on the global economy later Thursday. The euro EURUSD
and German bond yields BX:TMBMKDE-02Y
rose after multiple ECB officials suggested the first eurozone rate hike of the cycle could come as early as July.

In US data, first-time claims for unemployment benefits fell to 184,000, down 2,000, in the week ended April 16, the Labor Department said. The Philadelphia Fed’s regional manufacturing index fell to 17.6 in April from 27.4 a month earlier.

Companies in focus
  • Shares of United Airlines Holdings Inc.
    UAL
    jumped 8% after executives late Wednesday said they expect to report a profit this year, surprising investors.

  • American Airlines Group Inc.
    AAL
    shares were up more than 10% after the air carrier reported a narrower-than-expected first-quarter loss and revenue that more than doubled to beat forecasts, and provided an upbeat sales outlook.

  • Blackstone Inc.
    BX
    shares were up 5% after reporting distributable earnings that beat expectations.

  • Carvana Co.
    CVNA
    shares fell after the used-car retailer said that both industry-wide and company-specific issues affected its business in the first quarter but said that it had plans to address its challenges.

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