Dow Futures Edge Up; Microsoft Declines, Offset by Other Stocks in U.S. Markets
On March 15, 2023, U.S. stock market futures showed a slight increase, driven by mixed reactions from notable tech companies. The Dow Jones futures were up by 15 points, or 0.03%, reaching 49,182, while the S&P 500 rose 15.75 points, or 0.22%, to 7,023. The Nasdaq 100 also saw a minor uptick of 35 points, or 0.13%, bringing it to 26,191.25.
Market Reactions Following Earnings Reports
Investors were reacting to earnings reports from major firms, particularly the so-called “Magnificent Seven.” Although Microsoft faced a negative response after its earnings announcement, Meta and Tesla reported positive results. These gains helped offset Microsoft’s decline.
Microsoft’s Earnings Report
- Microsoft’s stock fell by 6.88%, closing at $448.50.
- The Azure division recorded a 38% growth, in line with expectations.
- Cloud gross margins decreased to 67%, raising concerns about the return on capital expenditure.
- Capital expenditures hit a record high of $37.5 billion.
Positive Performance from Meta and Tesla
- Meta’s stock increased by 9.56%, finishing at $732.69.
- Robust advertising revenue helped the company exceed sales forecasts.
- Tesla’s stock rose by 1.46%, closing at $437.76, as it announced further investments in clean transport infrastructure.
Other Market Movements
Caterpillar and Southwest Airlines also reported earnings that exceeded expectations. Caterpillar’s stock climbed by 1.36%, closing at $652.00, bolstered by increased demand for power generation equipment due to soaring energy needs from AI data centers.
- Southwest Airlines saw a sizable increase of 5.46%, ending at $43.09 thanks to promising earnings guidance.
Economic Outlook and Challenges
Despite positive earnings reports, some economic pressures remain. Following the Federal Open Market Committee (FOMC) meeting, concerns arose regarding potential government shutdowns due to stalled budget negotiations. Additionally, tensions regarding Iran have resurfaced, contributing to market unease.
Overall, while the stock market is currently stable, investors are keeping a close watch on future developments, particularly surrounding upcoming earnings from Apple and other tech giants.
