Here are five things you must know for Thursday, July 25:
1. -- Stock Futures Mixed as Earnings Parade Continues
U.S. stock futures were mixed on Thursday, a day after the S&P 500 and Nasdaq reached all-time highs, and ahead of the busiest day so far of the quarterly earnings season.
Contracts tied to the Dow Jones Industrial Average rose 23 points, futures for the S&P 500 were down 1.85 points, and Nasdaq futures fell 27.50 points. The S&P 500 rose 0.47% on Wednesday to 3,019.56, and the Nasdaq advanced 0.85% to 8,321.50 as tech shares, particularly chip stocks, rallied. The Dow fell 0.29% on Wednesday.
Earnings reports are expected Thursday from Amazon.com (AMZN - Get Report) , Alphabet (GOOGL - Get Report) , Intel (INTC - Get Report) , American Airlines (AAL - Get Report) , Southwest Airlines (LUV - Get Report) , Bristol-Myers Squibb (BMY - Get Report) , Comcast (CMCSA - Get Report) , Starbucks (SBUX - Get Report) , Royal Caribbean Cruises (RCL - Get Report) , Mattel (MAT - Get Report) , Waste Management (WM - Get Report) and T-Mobile US (TMUS - Get Report) .
Dow Inc. (DOW) reported core second-quarter earnings of 86 cents a share, matching analysts' estimates.
The economic calendar in the U.S. on Thursday includes Durable Goods Orders for June at 8:30 a.m. ET, International Trade in Goods for June at 8:30 a.m., and weekly Jobless Claims at 8:30 a.m.
European shares rose modestly Thursday ahead of a monetary policy decision from the European Central Bank. Some economists forecast the ECB will ease rates at the meeting amid soft economic data, while most expect ECB President Mario Draghi to signal that rates will be cut in September.
2. -- Tesla Tumbles on Wider-Than-Expected Loss, CTO Resignation
Tesla (TSLA - Get Report) slumped 11.47% to $234.50 in premarket trading Thursday after the electric car company posted a second-quarter loss far wider than analysts' estimates, and said its chief technology officer will be stepping down to take an advisory role.
Elon Musk's company reported an adjusted loss in the period of $1.12 a share, below forecasts that predicted a loss of 40 cents. Revenue in the quarter of $6.35 billion also came up shy of consensus.
"We expect to be around breakeven this quarter and profitable next quarter," Musk told investors. "I feel pretty confident about that."
Tesla said it delivered 95,356 vehicles in the quarter, beating its own guidance, and more than 77,000 Model 3s. The company stuck to its previous forecast that it would ship 360,000 to 400,000 vehicles this year.
"We are working to increase our deliveries sequentially and annually, with some expected fluctuations from seasonality," Musk said. "This is consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year."
Gross margins in the quarter fell to 14.5% from 15.5% a year earlier.
Meanwhile, Musk said J.B. Straubel, one of Tesla's founders, would be leaving the company.
Straubel was in charge of the engineering and design of Tesla vehicles. He joined Tesla in 2003 along with Musk.
Drew Baglino, now a vice president of technology at Tesla, will be taking over Straubel's role.
3. -- Facebook's Earnings Top Forecasts as Users Grow
Facebook earned $1.99 a share in the second quarter, up from $1.74 a year earlier. Revenue jumped 28% in the quarter to $16.9 billion.
Analysts had been expecting Facebook to report earnings of $1.88 a share on revenue of $16.49 billion.
The company said monthly-active users rose 8% to 2.41 billion in the quarter, while average revenue per user was $7.05, higher than estimates.
Facebook's report came the same day it announced it had agreed to a record $5 billion fine to settle charges brought by the Federal Trade Commission. Absent the charges from the FTC settlement and developments in a legal proceeding, Facebook earned 91 cents a share in the quarter.
Facebook also confirmed in its earnings release on Wednesday that it had been notified by both the FTC and the Department of Justice that the agencies had opened antitrust investigations of Facebook and other large tech companies.
"We had a strong quarter and our business and community continue to grow," said Mark Zuckerberg, Facebook founder and CEO. "We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services."
"Privacy and security and their associated headline risks will always be a concern for investors, and management will have to continue to invest to ensure proper compliance," said Jim Cramer and the Action Alerts PLUS team, which holds Facebook in its portfolio. "But the company is firing on all cylinders with regards to engagement and monetization. The earnings power here is terrific."
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4. -- Ford Posts Earnings and Sales Below Estimates, Issues Weak 2019 Forecast
Ford (F - Get Report) declined 4.55% in premarket trading Thursday to $9.86 after the automaker posted second-quarter earnings and sales below expectations and issued a weaker-than-expected forecast for the year.
Ford posted earnings on an adjusted basis of 28 cents a share in the quarter as revenue fell to $38.85 billion from $38.92 billion a year earlier.
Wall Street has been calling adjusted earnings of 31 cents a share on revenue of $38.49 billion.
"Midway through this key year of action, we are pleased with the progress we are making toward creating a more dynamic and profitable business," said CEO Jim Hackett. "In this time of profound change in our industry, Ford has amazing opportunities to delight customers, innovate and collaborate in new ways, and create value."
Ford said it expects adjusted earnings in 2019 of $1.20 to $1.35 a share, below projections of $1.40 a share.
Ford said the guidance was "based on the current economic environment, including the status of commodities, foreign exchange and tariffs."
5. -- PayPal Slumps on Soft Revenue Guidance
The stock declined 3.4% to $117.18 in premarket trading.
PayPal reported earnings in the second quarter of 86 cents a share on revenue of $4.31 billion. Analysts were expecting earnings of 73 cents per share on revenue of $4.33 billion.
The company said it expects full-year revenue of between $17.6 billion and $17.8 billion, short of Wall Street's estimate of $17.99 billion. For the year it expects earnings of between $3.12 and $3.17 a share vs. Wall Street's call for $3.03.
"PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year. Net new active accounts increased by a record 41 million over the last 12 months, and engagement per active account once again increased by 9% to 39 times a year," said CEO Dan Schulman.