Here are five things you must know for Thursday, April 25:
1. -- Stocks Trade Mixed as Growth Worries Resurface
U.S. stock futures traded mixed on Thursday and global stocks were mostly lower as weaker data and dovish central bank actions added to concerns over the pace of world growth and offset strong corporate earnings.
A surprise contraction in first-quarter GDP in South Korea, followed by pledge from the Bank of Japan to keep interest rates near zero until at least next year, matched a similar dovish tilt from the Bank of Canada on Wednesday and weakening German business sentiment, driving investors into safer assets.
Contracts tied to the Dow Jones Industrial Average fell 122 points, futures for the S&P 500 declined 2.30 points, and Nasdaq futures gained 10.50 points.
3M Co. (MMM) - Get Report posted weaker-than-expected first-quarter earnings and said it will launch a restructuring plan, including 2,000 job cuts, that will re-align the company into four business units as it slashed 2019 profit forecasts. The stock fell 7.6% in premarket trading.
Earnings reports are also expected Thursday from Amazon.com (AMZN) - Get Report , Intel (INTC) - Get Report , Ford (F) - Get Report , Southwest Airlines (LUV) - Get Report , AbbVie (ABBV) - Get Report , Bristol-Myers Squibb (BMY) - Get Report , Starbucks (SBUX) - Get Report , Comcast (CMCSA) - Get Report , D.R. Horton (DHI) - Get Report , United Parcel Service (UPS) - Get Report and Waste Management (WM) - Get Report .
The economic calendar in the U.S. Thursday includes Durable Goods Orders for March at 8:30 a.m. ET, and weekly Jobless Claims at 8:30 a.m.
2. -- Microsoft Posts Blowout Third Quarter as Revenue at Azure Soars
The company earned $1.14 a share in its fiscal third quarter vs. 95 cents a year earlier and higher than analysts' forecasts of $1 a share.
Revenue in the period rose to $30.57 billion from $26.82 billion a year earlier and beat forecasts of $29.88 billion.
"Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year over year," said Microsoft Chief Financial Officer Amy Hood. "We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments."
Revenue at Microsoft's cloud-computing division, Azure, rose 73% in the period. Analysts at UBS had estimated Azure revenue would jump 66% in the quarter.
"Bottom line, Microsoft is firing on all cylinders," wrote Cramer and the AAP team, which hold Microsoft in its portfolio. "Azure remains the dominant hybrid cloud ecosystem and we continue to believe that it will gain market share as businesses around the world increasingly shift toward cloud computing, with a clear preference for a hybrid-cloud environment, the best of which is Azure."
The stock was rising 4.6% to $130.80 in premarket trading, putting Microsoft's market cap above $1 trillion.
3. -- Facebook Records $3 Billion Charge for Expected FTC Fine
earnings during the period would have been $1.89 a share, excluding a charge of $3 billion Facebook set aside in the quarter after the social media giant "reasonably estimated" it would be required to pay a fine of that amount issued by the Federal Trade Commission for issues related to its Cambridge Analytica scandal.
Analysts had been calling for earnings of $1.62 a share on revenue of $14.98 billion.
Facebook said the FTC fine could be as high $5 billion, but set aside $3 billion because the "matter remains unresolved."
Facebook reported monthly active users of 2.38 billion, an increase of 8% from a year earlier, and daily active users of 1.56 billion, also up 8%. Analysts were expecting 2.37 billion MAUs, and 1.56 billion DAUs.
"We had a good quarter and our business and community continue to grow," said Mark Zuckerberg, Facebook founder and CEO. "We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet."
The stock jumped 8.7% in premarket trading Thursday to $198.46.
"This quarter was another perfect example of how advertisers need Facebook's platform to reach the customer, and at the same time, those same customers continue to use Facebook's platforms at an increasing rate," said Jim Cramer and the Action Alerts PLUS team, which holds Facebook in its portfolio. "That's the bread and butter of the Facebook business model, and it's why we stayed long this name during its turbulent second half of 2018."
4. -- Tesla Reports Wider-Than-Expected Loss But Sees Return to Profitability in Q3
Tesla (TSLA) - Get Report declined 0.6% in premarket trading Thursday after the electric vehicle company reported a wider-than-expected first-quarter loss but said it expects to return to profitability in the third quarter.
Tesla posted an adjusted loss of $2.90 a share on revenue of $4.54 billion. Analysts had expected a loss from Tesla of $1.15 a share on sales of $5.42 billion. In the first quarter of 2018, the company posted an adjusted loss of $3.35 a share.
The GAAP loss in the quarter was $702 million, or $4.10 a share, vs. a year-earlier GAAP loss of $4.19 a share.
Tesla produced roughly 63,000 Model 3 vehicles in the first quarter, about 3% more than the previous quarter. In an earnings release, the company attributed the modest increase to supplier limitations, fewer working days and changes to the production process.
Elon Musk's company forecast it will report a "significantly" narrower loss in the second quarter, and will have negative free cash flow during the quarter. Tesla added, however, that it expects to return to profitability in the third quarter and to report positive free cash flow in the third and fourth periods.
5. -- Deutsche Bank and Commerzbank End Merger Talks
"After thorough analysis, we have concluded that this transaction would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration," said Deutsche Bank CEO Christian Sewing in a statement.
"Deutsche Bank will continue to review all alternatives to improve long-term profitability and shareholder returns," Germany's biggest lender added.