Stock futures slide as Salesforce tumbles on revenue miss and soft guidance: Live updates

Stock futures slide as Salesforce tumbles on revenue miss and soft guidance: Live updates

Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024.

Michael M. Santiago | Getty Images

U.S. stock futures fell Wednesday night as shares of Salesforce slid on a quarterly revenue miss and soft guidance.

Futures tied to the Dow Jones Industrial Average dropped 260 points, or 0.7%. S&P 500 futures slid 0.3% and Nasdaq-100 futures fell 0.4%.

In extended trading, Salesforce plunged around 16% after missing revenue expectations for the fiscal first quarter. The company’s earnings and revenue outlook for the second quarter also fell short of the Street’s estimates, as did full-year revenue guidance. Retailer American Eagle Outfitters also declined more than 8% after first-quarter revenue missed of analysts’ forecasts.

During Wednesday’s session, the Nasdaq Composite fell about 0.6%, posting its worst session in May in spite of an 0.8% advance for Nvidia. The S&P 500 declined 0.7%, and the Dow slid nearly 1.1%. 

It was a notably difficult day for the equity markets. More than 400 stocks in the S&P 500 were negative on the day, and all 11 sectors tumbled. 

An uptick in the 10-year Treasury yield, which topped 4.6%, weighed upon investor sentiment, according to Ross Mayfield, Baird investment strategy analyst. Higher yields can be bad news for stock investors, as they reduce the multiples investors are willing to pay for equities and make safer investments, such as Treasury bills and money market funds, more attractive.

“We have a ‘higher for longer’ backdrop, which is not new news, but in the [current] catalyst vacuum, is weighing upon the average stock — particularly at an extended valuation like we’re currently at,” Mayfield said.

On Thursday, investors will be looking toward weekly jobless claims numbers. The second reading of the real gross domestic product for the first quarter is also due. The main event for economic data this week is the Friday release of the personal consumption expenditures price index report for April, the Federal Reserve’s preferred inflation gauge 

Earnings season continues Thursday, with Best Buy and Dollar General set to announce quarterly results in the morning. Dell Technologies, Costco, Gap and Nordstrom will report earnings after the bell.

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