May 8 Premarket Briefing: 10 Things You Should Know
Here are 10 things you should know for Thursday, May 8:
1. -- U.S. stock futures were flat Thursday as investors awaited jobless claims numbers and a second day of congressional testimony from Federal Reserve Chair Janet Yellen .
International markets rose on improved China trade data. Japan's Nikkei 225 index finished the session with a gain of 0.9% while China's Shanghai Composite gained 0.3%.
2. -- The economic calendar in the U.S. on Thursday includes weekly initial jobless claims at 8:30 a.m. EDT. Federal Reserve Chairwoman Janet Yellen will appear before the Senate Budget Committee at 9:30 a.m. in her second day of testimony before Congress.
3. -- U.S. stocks on Wednesday closed mixed Wednesday as tech stocks fell and investors digested remarks from Federal Reserve Chair Janet Yellen.
The Dow Jones Industrial Average rose 0.72% to close at 16,518.54 while the S&P 500 rose 0.56% to 1,878.21. The Nasdaq fell 0.32% to 4,067.67.
4. -- Barclays
The figure was higher than anticipated; previously the bank had indicated that it was looking to get rid of between 10,000 and 12,000 people.
Barclays said it would cut a total of 7,000 positions in investment banking by the end of 2016. A total of 19,000 jobs will be cut through 2016.
Barclays shares rose 5.2% in premarket trading to $17.37.
5. -- Tesla Motors
Tesla earned 12 cents a share on an adjusted basis on revenue of $713 million, as it delivered 6,457 Model S units in the first quarter. Tesla produced 7,535 Model S units during the quarter, but wasn't able to deliver them all due to the number of cars in transit to both Europe and Asia.
The company said non-GAAP gross margins were 25.4% for the quarter, slightly above the 25.2% it reported in the fourth quarter. Tesla generated $61 million in cash flow from operations during the quarter.
Wall Street expected Tesla to report first-quarter earnings of 10 cents a share on sales of $699.1 million.
Tesla said it expects to deliver about 7,500 Model S units, as the company looks to surpass 35,000 Model S deliveries for the year. Tesla is looking to produce between 8,500 and 9,000 cars for the quarter, up 13% to 19% sequentially.
"We still plan to invest $650-850 million for the year in capital expenditures for increased production capacity, growth in our store, service center and Supercharger footprints, Model X and S development and start of Gigafactory construction," CEO Elon Musk noted. As a result, he expects Tesla to be cash flow negative for 2014, before "considering the equity required for leasing."