United States stock futures were little changed on Wednesday night (Thursday AEST) following a record-setting session on Wall Street, as investors weighed a strong earnings backdrop against persistent geopolitical tensions in the Middle East.
By 10:00 am AEST (12:00 am GMT) Dow futures slipped 0.4%, S&P 500 futures ticked 0.1% lower, and Nasdaq 100 futures added just 0.04%.
In extended trading, International Business Machines declined 7.2% despite posting stronger-than-expected first-quarter results. The technology group reported earnings of $1.91 per share, excluding items, above expectations of $1.81, while revenue of $15.92 billion also exceeded forecasts.
However, investor sentiment was dampened after the company did not raise its full-year guidance.
Tesla shares edged 0.3% lower after chief executive Elon Musk warned of a significant increase in capital expenditure to support the company’s ambitions in self-driving technology and humanoid robotics.
The stock had initially rallied as much as 4% after the electric vehicle maker reported adjusted first-quarter earnings per share (EPS) at $0.41, beating expectations of $0.35.
Texas Instruments surged 10.6% after issuing an upbeat outlook, forecasting current-quarter EPS between $1.77 and $2.05, well above the $1.57 consensus estimate.
The semiconductor company also expects revenue of between $5 billion and $5.4 billion, ahead of analyst projections of $4.86 billion, after delivering a first-quarter beat on both profit and revenue.
Southwest Airlines fell 3% after reporting adjusted EPS of $0.45 and revenue of $7.20 billion for the first quarter, both below market expectations.
ServiceNow dropped 12.5% despite reporting better-than-expected quarterly earnings and revenue, as concerns around the integration of its recently acquired Armis weighed on its outlook.
The muted moves in futures followed a strong session on Wall Street, with the S&P 500 and Nasdaq Composite closing at record highs after U.S. President Donald Trump extended the ceasefire with Iran.
The S&P 500 rose 1.1%, while the Nasdaq gained 1.6%, and the Dow Jones Industrial Average advanced 0.7%.
However, geopolitical uncertainty remains elevated. Reports suggested that a lack of commitment from Iran led Vice President JD Vance to pause plans to attend further peace talks, while Iranian state media indicated that negotiations with the United States would be a “waste of time”.
Tensions further escalated following Iran’s seizure of two container ships in the Strait of Hormuz on Wednesday.
Investor sentiment has nevertheless been supported by a robust start to the earnings season. Of the roughly 10% of S&P 500 companies that have reported so far, 88% have delivered positive earnings surprises, while 84% have exceeded revenue expectations, according to FactSet Earnings Insight.
Looking ahead, market participants will focus on upcoming corporate results from Honeywell, American Express, Blackstone, American Airlines and Lockheed Martin.
Economic data will also be in focus, with preliminary April readings for S&P Global’s manufacturing and services purchasing managers’ indices due for release.
