Here are five things you must know for Thursday, April 26:
1. -- Stocks Post Modest Gains
U.S. stock futures suggested Wall Street would open modestly higher on Thursday, April 26, as investors waded through corporate earnings season, including a blowout quarter from Facebook Inc. (FB) , and reset expectations for profit growth amid rising bond yields.
Contracts tied to the Dow Jones Industrial Average were up 54 points, while those linked to the broader S&P 500 rose 7 points. Futures for the Nasdaq gained 39.75 points.
The Dow Jones Industrial Average
The U.S. economic calendar on Thursday includes Durable Goods Orders for March at 8:30 a.m. ET, International Trade in Goods for March at 8:30 a.m., and weekly Jobless Claims at 8:30 a.m.
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2. -- Facebook's Profit Not Dented by Cambridge Analytica Scandal
Facebook was rising 7% in premarket trading on Thursday after the social media giant posted first-quarter earnings and revenue that beat analysts' expectations.
Ahead of the earnings report, analysts had cited advertising revenue and user engagement as key concerns following the Cambridge Analytica data scandal. But Facebook reported an average of 1.45 billion daily active users during March 2018, an increase of 13% year over year. Advertising revenue was about $11.8 billion, compared to a consensus estimate of $11.3 billion.
"We think that ads is a great business model that is aligned with our mission," CEO Mark Zuckerberg told investors on a conference call after the earnings were released on Wednesday. "We want to build a service that can help connect everyone around the world, so we want to offer that service for free and have it be affordable, and that's completely aligned with what we're trying to do."
"I know that a lot of people have had questions about the business model, and this is something that I just think we at Facebook are very proud of," Zuckerberg added. "And we think that it is the right way to build a service that connects everyone around the world."
Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
"Though we have scaled down our position because we fear the possible repercussions related to a second scandal like Cambridge Analytica, it is encouraging to see the market regain appreciation for the stock after what has been a turbulent month for the company," said Cramer and the AAP team. "Revenue trends remain strong, the company is better monetizing its steadily growing user base, and initiatives in augmented realty/virtual reality and artificial intelligence are in place to keep users engaged for the long-term."3. -- Amazon, Microsoft and GM Report Earnings
PepsiCo Inc. (PEP) reported first-quarter adjusted earnings of 96 cents a share, beating forecasts by 3 cents. Revenue in the quarter was $12.56 billion, which also topped forecasts of $12.38 billion. Shares rose 0.8%.
General Motors Co. (GM) posted adjusted earnings of $1.43 a share in the first quarter, higher than analysts' estimates of $1.24. Revenue was $36.1 billion; analysts expected $34.66 billion. The stock fell 2.9% in premarket trading.
Earnings are also expected Thursday from Amazon.com Inc. (AMZN) , Microsoft Corp. (MSFT) , Intel Corp. (INTC) , American Airlines Group Inc. (AAL) , Bristol-Myers Squibb Co. (BMY) and Starbucks Corp. (SBUX) .
4. -- Ford Is Doing Away With Almost All Its Cars
Ford Motor Co. (F) rose 1.9% in premarket trading on Thursday after the automaker posted first-quarter earnings that beat analysts' estimates, and said it would shed most of its North American car lineup in a cost-cutting move as customers have shifted their preferences to pickup trucks and crossovers.
CEO Jim Hackett said Ford would get rid of all cars in the region during the next four years except for the Mustang sports car and a compact Focus crossover vehicle.
The company has found another $11.5 billion in cost cuts and efficiencies, bringing the total to $25.5 billion expected by 2022, Chief Financial Officer Bob Shanks told reporters, the Associated Press reproted. Savings will come from engineering, product development, marketing, materials and manufacturing. The company previously predicted $14 billion in cuts by 2022.
5. -- Deutsche Bank Plans 'Significant' Job Cuts
Deutsche Bank AG (DB) said Thursday that it was planning "significant" job cuts for its global investment banking division, including a retreat from some non-European markets, as it moves to slash costs and trim its balance sheet under new CEO Christian Sewing.