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US pre-open: Stocks to drop as earnings roll in; Twitter slumps after Q4

By Michele Maatouk

Date: Thursday 07 Feb 2019

US pre-open: Stocks to drop as earnings roll in; Twitter slumps after Q4

(Sharecast News) - US stock futures pointed to a downbeat open on Wall Street on Thursday as investors sifted through more earnings releases, with Twitter under the cosh following the release of its quarterly numbers.
At 1235 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.5%.

Konstantinos Anthis, head of research at ADSS, said: "Global stocks have run an impressive rally during the first month of the year but questions now emerge on whether some profit-taking will kick in and drive prices to the downside.

"Risk-off catalysts remain in the background, with the US and China no closer to a trade agreement and President Trump likely to shut down the government again, so we advise caution at this stage."

In corporate news, Twitter shares were down nearly 7% in pre-market trade after its fourth-quarter earnings and revenue beat expectations but the company's guidance was light.

Dunkin' Brands was 2.2% weaker as the Dunkin' Donuts owner's fourth-quarter profit topped expectations but revenue was a miss.

Yum! Brands was also in the red ahead of the opening bell as the company's Q4 earnings came in ahead of forecasts but group sales were a touch light.

Elsewhere, Coach and Kate Spade owner Tapestry tumbled more than 12% as its quarterly sales figures missed analysts' expectations, at $1.80bn.

In deal news, SunTrust Banks and BB&T Corp said they will combine in an all-stock merger of equals valued at approximately $66bn. Shares in both companies were up sharply in pre-market trade.

On the data front, initial jobless claims are at 1330 GMT.

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