Apr 25, 2024 (MENAFN via COMTEX) --
(MENAFN) As trading commenced on Wall Street, there was a slight retreat in the markets, with both the Dow Jones industrials and the S&P 500 futures dipping by 0.6 percent before the opening bell. This decline came amidst anticipation for a busy day of corporate earnings releases and the awaited release of the U.S. government's initial assessment of the economy's performance in the first quarter of 2024.
One notable decline was seen in shares of Southwest Airlines, which plummeted nearly 8 percent following the announcement of a USD231 million loss in the first quarter. In response, the airline unveiled plans to implement cost-cutting measures, including limiting hiring, offering voluntary leave options to employees, and discontinuing operations to four airports. CEO Robert Jordan emphasized the company's swift actions to address financial challenges, including delays in Boeing aircraft deliveries.
Conversely, American Airlines reported a USD312 million loss for the same period, largely attributed to rising labor costs. However, the airline expressed optimism about returning to profitability in the second quarter, leading to a 5.2 percent increase in its stock price before the market opening on Thursday.
Meanwhile, Meta, the parent company of Facebook and Instagram, experienced a significant downturn of 15.6 percent in after-hours trading. This decline followed the issuance of tepid revenue guidance alongside otherwise strong first-quarter financial results, sparking investor concerns.
Looking ahead, market attention turned to the forthcoming earnings reports from two tech giants, Google parent Alphabet and Microsoft. These companies, which were pivotal in driving the U.S. stock market's gains in the previous year, are under pressure to deliver strong performances to justify their elevated stock prices.
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