Premarket: Here's what you need to know before the clock
On Wednesday, the electric car manufacturer said it lost $ 408 million over the three months ending June, far worse than Wall Street had expected. Stocks fell more than 10% in trade with the premarket.
"I think everyone was a bit surprised, we thought this could be a moment when Tesla made some more positive news," said Jessica Caldwell, CEO of Insights at Edmunds, to CNN Business.
Nokia shares shot up 8% after the Finnish telecom manufacturer said sales increased by 7% in the second quarter.
It also said "some customers are re-evaluating their vendors in the face of security issues," and suggested that it may collect 5G orders due to concern for the Chinese rival Huawei.
Anheuser-Busch InBev reported increased sales and beverage volumes. Budweiser, Stella Artois and Corona traded 8.5% globally. Stocks in the world's largest brewers achieved over 4.5%.
The Volkswagen share gained a mild boost after the company confirmed its guidance for 201[ads1]9. Revenue was up nearly 5% in the first half of 2019, despite a small drop in vehicle sales. Operating profit increased by 1.9%.
The Unilever results were gloomy. Sales growth missed analyst expectations and Ben & Jerry's owner said that bad weather in Europe and North America had damaged ice cream sales.
Japan's second-largest automaker said that profits were nearly obliterated in the first quarter of the fiscal year. Operating profit fell 99% in the quarter compared to the previous year. In the meantime, revenues dropped almost 13%.
Nissan said it will squeeze about 12,500 jobs from its workforce worldwide. There are more than twice as many positions as the company expected to cut in May. It also plans to reduce the product range and global production capacity by 10%.
4. Stimulus restarts: Investors believe the European Central Bank is preparing new stimulus to strengthen the region's flag economy. The question is when and how it will turn on the cranes.
The central bank could answer on Thursday, when it reports its latest interest rate decision and outgoing president Mario Draghi holds a press conference.
Many investors expect the ECB to lay the foundations for a cut in September that would push the key rate forward to negative territory. The central bank could also revive its bond procurement program.
The ECB has less room for maneuver than the US central bank, which is also expected to reduce interest rates soon. With interest rates in Europe at record low levels, economists say governments must act to increase spending.
"The days to" whatever it takes is long gone, "strategist Kit Juckes, Societe Generale, said. "Fiscal policy must engage."
6. Coming this week:
Friday – US GDP 2nd Quarter; McDonald's ( MCD ) and Twitter ( TWTR ) earnings
