U.S. stock futures are pointing lower as investors eye corporate earnings after a two-day markets rally; Google parent Alphabet ( GOOGL ) is set to report highly anticipated quarterly results after the close; IBM ( IBM ) shares are plunging in premarket trading as its CEO warns clients may take a "wait-and-see approach"; Tesla ( TSLA )'s EU sales sink for a third straight month; and PepsiCo ( PEP ) lowers its full-year profit outlook. Here's what investors need to know today.
1. US Stock Futures Point Lower After Two-Session Rally
U.S. stock futures are pointing lower following a two-day winning streak on optimism over President Donald Trump's stances on the Federal Reserve Chair Jerome Powell and China tariffs. Dow Jones Industrial Average futures are 0.5% lower after the blue chip index gained 1.1% in the prior session, while Nasdaq and S&P 500 futures are down by smaller percentages. Bitcoin ( BTCUSD ) is dipping to around $92,500. Gold and oil futures are rising. Yields on the 10-year Treasury note are falling below 4.35%.
2. Alphabet to Report Results After Bell
Alphabet ( GOOGL ) shares are little changed in premarket trading ahead of the Google parent's highly anticipated first-quarter report after markets close today. Alphabet is expected to report an 11% year-over-year increase in revenue with earnings per share rising to $2.01. Analysts are largely bullish on the tech giant's ability to weather economic uncertainty . The search firm shares have lost about 18% of their value so far this year.
3. IBM Stock Drops on CEO Warning About Clients
IBM ( IBM ) shares are sinking 7% after a warning by its chief executive despite the firm's stronger-than-expected quarterly results. "In the near term, uncertainty may cause clients to pause and take a wait-and-see approach," IBM CEO Arvind Krishna said, according to a transcript provided by AlphaSense. Krishna added that IBM hasn't yet seen any "material change in client buying behavior." In its first-quarter report, the company reported adjusted EPS of $1.60 on revenue of $14.51 billion, both above Visible Alpha consensus.
4. Tesla Again Posts Weak EU Sales
Tesla's ( TSLA ) sales in the European Union (EU) have plummeted for a third straight month . According to the European Automobile Manufacturers' Association, Tesla's EU new car registrations, which serve as a proxy for sales, plunged 36% year-over-year in March and have dropped 45% so far this year. They had plummeted 47% in February following a 50% drop in January. Meanwhile, battery-electric vehicle (BEV) registrations in the bloc jumped nearly 17% overall in March. Tesla stock is edging lower in premarket trading.
5. PepsiCo Lowers Full-Year Profit Outlook Amid Tariff Cost Concerns
Food and snack giant PepsiCo ( PEP ) lowered its full-year earnings outlook on concerns over tariffs. The company projected that core earnings per share (EPS) would be roughly flat throughout the year, down from its prior outlook of a mid-single-digit increase. PepsiCo cited "expected higher supply chain costs related to tariffs, elevated macroeconomic volatility, and a subdued consumer backdrop" as reasons for the outlook cut. PepsiCo's sales of $17.92 billion came in ahead of analysts' estimates but its core EPS of $1.48 was short of projections. Shares are little changed in premarket trading.
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