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

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.