Several companies made headlines before the bell, with McDonald’s shares dipping nearly 2% in premarket trading after missing analysts’ quarterly earnings estimates. Despite a 1.9% rise in worldwide sales, the fast food chain fell short of the expected 2.1% growth. Stellantis, the Jeep maker, saw a 3.6% drop in shares as first-quarter revenue came in lower than expected due to lower sales and foreign exchange effects. Coca-Cola also dipped about 0.4% as first-quarter results slightly exceeded expectations, reporting 72 cents in adjusted earnings per share on $11.30 billion of revenue.
Tesla, the electric vehicle maker, lost 1.9% after a 15.3% surge the previous day as some investors took profits. The company received approval from China to roll out its advanced driver-assistance service technology in the country. HSBC, Europe’s largest bank by assets, saw a 4.2% increase in shares after beating first-quarter earnings expectations and announcing the departure of its Group Chief Executive Officer, Noel Quinn. The bank’s revenue for the period was $20.8 billion, higher than analysts’ forecasts, and it reiterated its 2024 financial guidance.
Eli Lilly shares popped nearly 7% after reporting first-quarter adjusted earnings of $2.58 per share, beating the consensus estimate. The company also raised its full-year guidance for adjusted earnings and revenue, surpassing analysts’ expectations. 3M shares advanced 7.7% as the maker of industrial products posted earnings of $2.39 per share on revenues of $7.72 billion, exceeding analysts’ estimates. The company also announced a dividend cut after spinning off its healthcare unit earlier in the month.
Overall, the companies making headlines before the bell had mixed results with some falling short of expectations while others exceeded them. Despite the challenges faced by companies like McDonald’s and Stellantis, others like HSBC, Eli Lilly, and 3M saw positive outcomes in their financial performance. The departure of HSBC’s Group CEO and the approval of Tesla’s advanced technology in China were notable developments. Investors reacted differently to the news, with some taking profits on Tesla’s previous surge while others saw opportunities for growth in companies like Eli Lilly and 3M. The varying performances highlight the volatility and uncertainty in the market, with companies facing unique challenges and opportunities in their respective industries.
