5 things to know before the stock market opens on Thursday, April 28

Here are the most important news, trends and analysis investors need to start their trading day:

Nasdaq futures contract up nearly 2% on Thursday, fueled by a 14% gain in shares of parent company Facebook Meta . Platform better-than-expected earnings. Bond yields rose on data showing U.S. economic growth slowed in the first quarter. After Thursday’s bell, megatech continues to lead US companies with quarterly results of Apple and Amazon scheduled for reporting.

• The tech heavy index, already in a bear market, closed Wednesday at low of the yeara day after the worst sell-off since September 2020.
• The Dow Jones Industrial Average and S&P 500 both are set to open higher on Thursday after ending the previous session with modest gains. The S&P 500 is still correcting.
• The Dow is below a 10% or more downside correction from recent highs.

Some pre-market dynamics: Teladoc 44% after reporting a missed earnings; Southwest Airlines up more than 4% after giving an upbeat outlook; and Ford rose 1.5% after beating expectations slightly on earnings and revenue.

Exact score 10-year Treasury yield on Thursday rose, trading around 2.88%after the government reported that the US economy contract 1.4% in the first quarter. Economists had expected 1% growth. Initial jobless claims for the week ended April 23 were 180,000, in line with estimates. The Federal Reserve Will pay special attention to the reports as it looks for a sweet spot to aggressively raise interest rates further to combat inflation without shutting down economic growth.

Meta . Platformformerly known as Facebook, reported mixed first quarter results after the closing bell on Wednesday. Still, while revenue missed, key engagement metrics were better than expected, and so was earnings. During the call, management made very encouraging comments about costs, monetization, and long-term profit potential. They said they also expect revenue growth to accelerate over time. Despite skyrocketing to around $199 per share in the crypto market, such a level would still see Meta Platforms down more than 40% for the year.

Twitter grant earnings in the first quarter before the opening bell on Thursday, in what could be one of its last reports as a public company after the social network’s board agreed to sell to Elon Musk for $44 billion. Twitter shares rose 1% to about $49 per share in money markets, but that was well below Musk’s $54.20 per share in cash. Twitter said monetized daily active users beat estimates for the first quarter but total revenue was slightly below expectations.

• McDonald’s set to open 2% higher after delivery Revenue better than expecteddriven by price increases in the US and strong international sales growth.
• Caterpillar is set to open 2% lower despite a beating on earnings and revenue, with help from rising construction activity and rising commodity prices leading to more mining.
• Merck is set to open about 2% after beat the top line and the bottom linebacked by the power of cancer treatment Keytruda, its HPV vaccine Gardasil and its Covid oral antiviral drug Molnupiravir.

Eli Lilly Stocks rallied 4% in money markets on Thursday, soon after Promising data release from a 72-week trial of its obesity drug tirzepatide. Participants lost up to 22.5% of their body weight, or about 52 pounds. Sixty-three percent of the participants taking tirzepatide lost at least 20% of their body weight. Also before the bell on Thursday, Lilly reported better-than-expected quarterly earnings and revenue. The drugmaker lowered its guidance for full-year earnings but raised its revenue outlook.

– by CNBC Samantha Subin, Hannah Miao, Sarah Min, Jeff Cox, Zev Fima, Lauren Feiner and Dom Chu contributed to this report.

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