AT&T, Snap, Chipotle, Intel, Ford - 5 Things You Must Know Thursday

Stock futures fall as investors focus on corporate earnings but keep watch on the lingering coronavirus pandemic; AT&T, Snap and Intel report earnings; digital sales surge at Chipotle.
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Here are five things you must know for Thursday, April 22:

1. -- Stock Futures Fall as Wall Street Eyes Earnings and Virus Resurgence

Stock futures were lower Thursday as investors focused on corporate earnings reports but kept watch on the possibility that the lingering coronavirus pandemic could halt a global economic rebound.

Contracts linked to the Dow Jones Industrial Average fell 27 points, S&P 500 futures were down 6 points and Nasdaq futures dropped 23 points.

The yield on the benchmark 10-year Treasury was unchanged early Thursday to 1.564%, near a five-week low.  

Stocks finished higher Wednesday, snapping a two-day losing streak. The Nasdaq posted a sharp 1.19% gain, shaking off a tumble in Netflix  (NFLX) - Get Report following a subscribers miss for the streaming giant.

Roughly 80 companies in the S&P 500 have reported or are scheduled to post earnings this week. So far, 85% of the companies that issued reports have topped Wall Street estimates, according to FactSet.

Wall Street analysts expect an increase in earnings of more than 24% for companies in the S&P 500 during the first-quarter season.

“Those companies that meet or beat on revenue and paint a nice picture for the rest of the year are being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “When a railroad company is saying we really see improvement for the second half of the year, that’s a really good sign.”

As for the pandemic, COVID-19 infections have been increasing in major economies such as Brazil and India. According to a report in The New York Times, India recorded 312,731 new infections in a 24-hour period, the highest daily coronavirus case count in a single country since the pandemic began more than a year ago.

2.-- Thursday's Calendar: AT&T, Intel and Snap Earnings

AT&T  (T) - Get Report posted first-quarter adjusted earnings of 86 cents a share, beating analysts' estimates of 78 cents. Revenue of $43.94 billion also topped forecasts. 

Southwest Airlines  (LUV) - Get Report posted a narrower-than-expected adjusted loss for the first quarter as air travel continued to recover amid ongoing vaccinations and the reopening of the U.S. economy.

American Airlines  (AAL) - Get Report reported a first-quarter adjusted loss of $4.32 a share, 2 cents wider than forecasts.

Earnings reports are also expected Thursday from Intel  (INTC) - Get ReportSnap  (SNAP) - Get Report, Dow Inc.  (DOW) - Get Report, Biogen  (BIIB) - Get Report, Mattel  (MAT) - Get Report, Tractor Supply  (TSCO) - Get Report, Cleveland-Cliffs  (CLF) - Get Report, Union Pacific  (UNP) - Get Report, World Wrestling Entertainment  (WWE) - Get Report, Freeport-McMoRan  (FCX) - Get Report and Seagate Technology  (STX) - Get Report.

Highlighting Snap, TheStreet's Jim Cramer told his "Mad Money" viewers Wednesday night that he expects the company to "have a great quarter with fantastic growth."

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The U.S. economic calendar Thursday includes weekly Jobless Claims at 8:30 a.m. ET and Existing Home Sales for March at 10 a.m.

3. -- Credit Suisse Posts Loss From Archegos Meltdown

Credit Suisse  (CS) - Get Report posted a loss for the second straight quarter as it took a hit from the meltdown of Archegos, a U.S.-based hedge fund.

The Swiss bank reported a net loss of 252 million francs ($275 million) in the first quarter, largely due to the one-time charge of 4.4 billion francs.

“The loss we report in this quarter, because of this matter, is unacceptable,” said CEO Thomas Gottstein in a statement.

The Associated Press reported Thursday that Switzerland’s financial markets authority was looking into possible penalties against Credit Suisse following the bank's losses linked to Archegos.

4. -- Digital Sales Surge Boosts Chipotle Profit

Shares of Chipotle Mexican Grill  (CMG) - Get Report traded nearly 1% higher in premarket trading Thursday after the burrito chain posted first-quarter earnings that beat analysts' estimates.

Revenue in the quarter rose 23% to $1.74 billion and was in-line with estimates. Same-store sales rose 17.2%.

Digital sales jumped 134% to $869.8 million. "A little more than half" the digital sales were from order-ahead transactions, Chipotle said. 

Chipotle said it expects second-quarter same-store sales to be in the "high-twenties" percent to 30% range.

"As vaccines roll out and we get closer to moving past this pandemic ... Chipotle is well-positioned for growth,” said Chairman and CEO Brian Niccol in a statement.

5. -- Ford to Extend Downtime at U.S. Plants Amid Chip Shortage

Ford  (F) - Get Report will extend downtime at several North American factories amid the worldwide semiconductor shortage that has hampered auto production and threatened global supply chains.

The automaker's plants in Chicago, suburban Detroit and Kansas City, Mo., will be idled the weeks of May 3 and May 10. An SUV plant in Ontario also take an extra week of downtime in early May.

Ford has been forced to cancel weeks of production at its two plants that make the F-150, the truck model that generates the bulk of the company's global profit, The Wall Street Journal noted.

"Ford's North American plants continue to be affected by the global semiconductor shortage - along with automakers and other industries around the world," John Savona, Ford's vice president of manufacturing and labor affairs, wrote in a memo to employees that  was obtained by The Detroit News. "As you build every vehicle you can for our dealers and customers, our teams behind the scenes are working hard to source additional parts."

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