The Dow futures are down 200 points, while those on the S&P 500 and Nasdaq are trading little changed. The move comes after both tech-heavy indices closed at record highs during regular trade. The Dow also surged nearly 350 points, buoyed by the ceasefire extension by US President Donald Trump overnight.
However, oil prices are back at elevated levels with Brent Crude rising towards $102 a barrel, while West Texas Intermediate trading above the mark of $92 a barrel after Iran attacked commercial ships in the Strait of Hormuz.
The divergence in the futures though is due to varied reactions by specific index components to their results. Shares of IBM fell over 7% in extended trading after their results were in-line with expectations, while analysts were hoping for a better performance from its Software division. Analysts believe that the results did little to allay investor concerns regarding the impact of AI on the business.
IBM is an important component of the Dow Jones, carrying a weightage between 3% to 3.25% currently and a sharp fall in the stock price is weighing on the futures.
On the flip side, any potential losses on the S&P 500 and Nasdaq are being kept in check due to strong results from Texas Instruments, shares of which surged 10% in extended trading after projecting a stronger-than-expected sales outlook for the ongoing quarter.
Shares of Tesla, part of the tech-heavy indices, surged 4% afterhours after reporting an EPS beat for the quarter but revenue missed expectations. The stock gave up those gains soon after and turned negative as it projected capex to be higher than what was guided for earlier.
Today is also an important session for Wall Street in terms of results with companies such as Intel, American Express, SAP, Honeywell, Lockheed Martin coming out with numbers. Initial jobless claims will also be reported later this evening.
