Key Points To Watch Out For:
- Snap shares fell 14% after warning of advertising expenditure.
- Starbucks fell 7% after report of profits below expectations.
- Super Micro slumped 15% due to lower than expected preliminary revenues.
Starbucks (SBUX): Weak results and negative market reaction
Starbucks shares fell 7% in premarket trading after the coffee chain reported quarterly earnings below Wall Street expectations. While the CEO noted progress in serving customers, weak revenue continues to be a key concern for investors.
Snap (SNAP): Advertising spending warnings hit hard
Snap plunged 14% before the open after reporting that marketers are cutting budgets due to the US government’s tariff policies. This macroeconomic factor is impacting the platform’s revenue and growth outlook.
Super Micro (SMCI): Preliminary revenue disappoints the market
Super Micro fell about 15% in premarket trading after publishing preliminary figures below its own guidance, attributing the weakness to delays in orders for servers and computer products. The news is particularly hard on the technology sector, which is sensitive to AI investment cycles.
Mercedes-Benz (MBG), Stellantis (STLA): Tariff uncertainty complicates financial visibility
Mercedes-Benz and Stellantis withdrew their annual financial forecasts, citing uncertainty caused by US tariffs. While Volkswagen kept its projections unchanged, it warned that some metrics could be at the lower end of the estimated range. Automotive stocks traded volatile in Europe.
Samsung Electronics (KRX:005930): Mobile technology offsets weakness in chips
Samsung fell on the Seoul stock exchange, although growth in its smartphone division helped cushion weak results from its semiconductor business, which continues to be pressured by lower global demand and regulatory restrictions.
Caterpillar (CAT), Humana (HUM): Results before the open
Caterpillar and Humana are on the agenda this Wednesday, with investors closely watching their results to assess the impact of industrial and regulatory costs on the construction and healthcare sectors. Both companies will report results before the market opens.
Microsoft (MSFT), Meta (META) and Qualcomm (QCOM): High expectations for tech results
Three tech giants will report earnings after the close: Microsoft, Meta Platforms, and Qualcomm. The performance of these companies will be critical in setting the tone for the tech sector, especially after recent losses driven by trade concerns.
