5 Things to Know Before Markets Open

Meta shares are surging after the social media giant posted third quarter revenue projections that beat expectations and the release of the U.S. GDP is expected to show the economy remained steady in the second quarter. Here’s what investors need to know today.

  1. Meta Shares Pop After Strong Earnings, Forward Guidance

Meta (META) shares surged more than 8% in pre-market trading after it posted third quarter revenue guidance that was well ahead of analyst estimates, while also beating estimates for revenues and profits. The parent of Facebook, Instagram and Threads reported an 11% increase in quarterly revenue to $32 billion, while its earnings of $2.98 a share were ahead of analyst projections of $2.89. Its third-quarter revenue projections of $32 billion to $34.5 billion was above the $31.2 billion that analysts were expecting.1

  1. US GDP Expected to Come in Steady for Second Quarter

The pace of economic growth in the U.S. is expected to remain steady when the Bureau of Economic Analysis releases its advanced Gross Domestic Product for the second quarter at 8:30 a.m. ET, with economists expecting it to stay at 2%. Also today, initial jobless claims at 8:30 a.m. ET are projected to move up to 235,000 for the week ending July 22, up from 228,000 the week prior. Pending home sales are expected to have fallen 0.5% in June, less of a decline than May’s 2.7% drop.2

  1. Chipotle Shares Drop After Revenue Projections Fall Short

Chipotle Mexican Grill (CMG) shares dove more than 8% in pre-market trading after the fast food chain posted a quarterly revenue of $2.51 billion, short of projections of $2.53 billion. The restaurant’s quarterly same-store sales growth of 7.4% was softer than the 7.5% projection that analysts were looking to see.3

  1. Southwest Shares Fall After it Misses Profit Projection

Southwest Airlines (LUV)  shares dropped more than 6% in pre-market trading after it reported a drop in quarterly unit revenue and higher costs. The airline posted adjusted earnings per share of $1.09, which was lower than $1.10 profit that analysts were projecting, while Southwest’s quarterly revenue came in at $7.04 billion, above the expectations of $6.98 billion.4

  1. ServiceNow Shares Fall After Posting Revenue Growth

Shares of ServiceNow (NOW) fell 3.3% in pre-market trading despite posting earnings that beat expectations and lifting its full-year outlook, while also promoting its push into artificial intelligence (AI) software. The software provider posted a 23% quarterly revenue improvement compared with last year, coming in at $2.15 billion, above the $2.13 billion that analysts projected.5

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