U.S. Bancorp saw a decline of over 3% in premarket trading on Wednesday after reporting weaker-than-expected earnings for the first quarter. The bank earned 78 cents per share according to generally accepted accounting principles, falling short of analysts’ expectations of 84 cents per share. However, net revenue slightly exceeded estimates, coming in at $6.72 billion compared to the consensus forecast of $6.71 billion.
Travelers Companies also experienced a retreat in premarket trading, with shares slipping more than 2% after the insurance provider’s first-quarter earnings disappointed analysts. The company reported earnings of $4.69 per share on $10.18 billion in revenue, missing expectations of $4.90 per share on revenue of $10.51 billion.
In other news, Tesla requested shareholders to revote on a $56 billion compensation package for CEO Elon Musk. The company stated that the package incentivizes Musk to drive growth at Tesla by requiring him to hold onto any shares he receives for five years. This comes after a Delaware court ruled earlier this year that Tesla must rescind the pay package. Tesla shares were up 1% in premarket trading.
Capri Holdings saw a 3% decline in its stock after reports emerged that the Federal Trade Commission was preparing to block its $8.5 billion takeover of Tapestry, the parent company of Coach and Kate Spade. The deal, announced in August, faced scrutiny from regulators.
Fitch downgraded the ratings of Chinese tech giants Alibaba and Tencent from “stable” to “negative,” citing government regulation and oversight in their sector. While the long-term default ratings on their senior debt remained at “A+,” shares of Alibaba and Tencent fell by 1.31% and 0.53% respectively.
Japan’s exports rose 7.3% year on year in March, surpassing economists’ expectations of a 7% increase. However, imports fell by 4.9%, leading to a trade surplus higher than forecasted. Business optimism in Japan also dimmed in April, with the Reuters Tankan index showing a decline in sentiment among large firms.
Interactive Brokers’ founder and chairman, Thomas Peterffy, warned that the recent increase in margin loans could signal a market slowdown. Margin loans, which rose by 30% year on year to $51.2 billion, are viewed as a bearish sign for the market according to Peterffy.
In after-hours trading, United Airlines stock surged nearly 6% after beating analyst expectations for the first quarter and providing a positive outlook for the second quarter. Autodesk’s stock slid 2.4% due to a delayed annual filing, while J.B. Hunt Transport Services saw a more than 5% drop in shares after reporting weaker-than-expected earnings and revenue.
Stock futures opened higher on Tuesday night, with futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite trading close to 0.2% higher shortly after 6 p.m. ET.