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.
Why is Alibaba share price on a rally today?
Alibaba stock gained ahead of its Q2 earnings due to broader optimism over technology stocks.
Why is Walmart laying off its employees?
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.
Which stocks will report earnings today?
Eli Lilly, Kellogg and ConocoPhillips, Alibaba will report earnings today.