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May 8 Premarket Briefing: 10 Things You Should Know

Stocks in this article: TSLA DISH BCS DTV T TGT TM PCLN

Updated from 7:14 a.m. EDT

Here are 10 things you should know for Thursday, May 8:

1. 
-- U.S. stock futures were flat Thursday as investors awaited jobless claims numbers and a second day of congressional testimony from Federal Reserve Chair Janet Yellen

International markets rose on improved China trade data. Japan's Nikkei 225 index finished the session with a gain of 0.9% while China's Shanghai Composite gained 0.3%.

2. -- The economic calendar in the U.S. on Thursday includes weekly initial jobless claims at 8:30 a.m. EDT. Federal Reserve Chairwoman Janet Yellen will appear before the Senate Budget Committee at 9:30 a.m. in her second day of testimony before Congress.

3. -- U.S. stocks on Wednesday closed mixed Wednesday as tech stocks fell and investors digested remarks from Federal Reserve Chair Janet Yellen. 

The Dow Jones Industrial Average rose 0.72% to close at 16,518.54 while the S&P 500 rose 0.56% to 1,878.21. The Nasdaq fell 0.32% to 4,067.67.

4. -- Barclays (BCS), the British bank, said Thursday it would cut about 14,000 jobs this year as it looks to streamline its operations and reduce the size of its investment banking arm.

The figure was higher than anticipated; previously the bank had indicated that it was looking to get rid of between 10,000 and 12,000 people.

Barclays said it would cut a total of 7,000 positions in investment banking by the end of 2016. A total of 19,000 jobs will be cut through 2016.

Barclays shares rose 5.2% in premarket trading to $17.37.

5. -- Tesla Motors  (TSLA), the electric-car maker, reported first-quarter results that topped analysts' expectations.

Tesla earned 12 cents a share on an adjusted basis on revenue of $713 million, as it delivered 6,457 Model S units in the first quarter. Tesla produced 7,535 Model S units during the quarter, but wasn't able to deliver them all due to the number of cars in transit to both Europe and Asia.

The company said non-GAAP gross margins were 25.4% for the quarter, slightly above the 25.2% it reported in the fourth quarter. Tesla generated $61 million in cash flow from operations during the quarter. 

Wall Street expected Tesla to report first-quarter earnings of 10 cents a share on sales of $699.1 million.

Tesla said it expects to deliver about 7,500 Model S units, as the company looks to surpass 35,000 Model S deliveries for the year. Tesla is looking to produce between 8,500 and 9,000 cars for the quarter, up 13% to 19% sequentially.

"We still plan to invest $650-850 million for the year in capital expenditures for increased production capacity, growth in our store, service center and Supercharger footprints, Model X and S development and start of Gigafactory construction," CEO Elon Musk noted. As a result, he expects Tesla to be cash flow negative for 2014, before "considering the equity required for leasing."

Tesla shares fell 8.7% in premarket trading to $183.89.

6. -- DirecTV (DTV) is working with advisers including Goldman Sachs to evaluate a possible combination with AT&T (T), people familiar with the matter told The Wall Street Journal.

The two companies are in talks following an approach from AT&T to acquire DirecTV, people familiar with the matter said. A deal would create a pay-television giant that would serve more than 25 million subscribers and rival a combined Comcast and Time Warner Cable, the Journal noted.

DirecTV shares rose 0.2% in premarket trading; AT& sharesrose 0.6%.

7.
 -- A man arrested by Texas police over his alleged involvement in the data breach at retailer Target (TGT) last year was in fact picked up in a "street-level arrest" unrelated to a broader federal investigation into the matter, a law enforcement official told Reuters.

In the cyber-attack over the holidays, about 40 million payment card records were stolen, along with 70 million other records of customer information, including addresses and telephone numbers.

8. -- Toyota (TM), the world's top automaker, posted a record annual profit and sales above 10 million vehicles for the first time, but forecast Thursday a slower year ahead as the momentum from a weak yen fades.

Expenses such as the $1.2 billion penalty it paid in a settlement with the U.S. Justice Department earlier this year for hiding information about defects in its cars dented its profit for January-March quarter, according toToyota.

Toyota is forecasting a 1.78 trillion yen ($17.5 billion) profit for the fiscal year through March 2015.

9. -- Satellite TV provider Dish Network (DISH) reported first-quarter net income on Thursday of 38 cents a share on revenue of $3.59 billion.

Wall Street expected earnings of 44 cents a share on revenue of $3.58 billion.

Dish shares fell 0.7% to $62.20 in premarket trading on Thursday.

10 . -- Online travel agency Priceline (PCLN) is forecast to post first-quarter earnings of $6.92 a share on revenue of $1.63 billion.

-- Written by Joseph Woelfel

To contact the writer of this article, click here:Joseph Woelfel

To submit a news tip, send an email to:tips@thestreet.com.

Follow @josephwoe58

 

Copyright 2014 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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