US pre-market update: Why is Alibaba share price on a rally? Walmart & Facebook in focus

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How will market open today?

  • Stock futures trading flat amid US-China tensions as China starts live military drills around Taiwan.
  • Surprise rebound in July services PMI data boosted investor sentiments on Wednesday.
  • Eli Lilly, Kellogg and ConocoPhillips, Alibaba will report earnings today.
  • Investors are looking forward to weekly jobless claims data.

Walmart starts lay offs

  • Walmart has begun to lay off corporate employees amid inflationary pressures.
  • This comes after it slashed its profit outlook and warned of lesser spending by customers, last week.
  • Walmart is the largest employer in US, with nearly 1.6 million workers.
  • Amazon, Shopify, Robinhood have also announced layoffs recently.

First ever Bond Sale by Facebook (Meta)

  • Facebook (meta) is considering its first ever bond sale and has asked banks to set up investor meetings.
  • As per analysts, it could raise billions of low cost debt amid rising spending on metaverse and share buybacks, as free cash flow contracted.
  • S&P Global Ratings has assigned an AA rating, with "stable" outlook on Wednesday.

Alibaba Earnings preview

  • Alibaba may report its first-ever decline in revenue, due to a series of COVID lockdowns in China.
  • Investors to focus on guidance amid slowing economy, regulatory crackdown and US-China tensions.
  • However, analysts expect to see improving prospects through the rest of the year.
  • Why is Alibaba share price on a rally today?

  • Why is Walmart laying off its employees?

  • Which stocks will report earnings today?