5 Things to Know Before the Stock Market Opens

U.S. second-quarter GDP data is due at 8:30 a.m. ET, which is expected to show subdued growth, another data point that may push the Federal Reserve to cut interest rates soon; shares of fast-casual restaurant chain Chipotle Mexican Grill (CMG) are rising in premarket trading after the burrito maker produced a second-quarter earnings beat; Ford Motor (F) shares are tumbling after the automaker’s results fell short of analysts’ estimates; shares of fellow automaker Stellantis (STLA) also are sinking on excess U.S. inventory; and Unilever (UL) shares are rising after the consumer-goods giant posted Wall Street-beating results and said its spinoff of its ice cream division—including Ben & Jerry’s—is on track. U.S. stock futures are little changed after major equity indexes tumbled Wednesday, with the Nasdaq Composite marking its biggest one-day drop since October 2022, as underwhelming earnings reports from Tesla (TSLA) and Google parent Alphabet (GOOGL) raised doubts about the sustainability of this year’s big-tech rally. Here’s what investors need to know today.

1. Key Q2 GDP Data Expected to Show Subdued Growth

Investors will be watching for second-quarter U.S. gross domestic product (GDP) data due at 8:30 a.m. ET, which is expected to show more growth from the previous quarter but less than the second half of last year. Economists surveyed by Dow Jones Newswires and The Wall Street Journal anticipate GDP grew at an annualized 2.1% rate in the second quarter, up from 1.4% in the first, propped up by consumer spending, and likely boosted by inventory levels. The April-to-June data will be closely watched by the Federal Reserve to weigh when to cut interest rates, which remain at a 23-year high. Fed officials have said they are watching economic data for more evidence that inflation is clearly headed toward the Fed’s 2% annual target before cutting the fed funds rate.

2. Chipotle Jumps After Q2 Beat as Burrito Maker Avoids ‘Value Meal’ Trend

Shares of fast-casual restaurant chain Chipotle Mexican Grill (CMG) are rising 3% in premarket trading after the burrito maker released second-quarter results above Wall Street’s expectations. Demand for the chain’s menu items allowed it to avoid lowering prices, helping to sustain its revenue growth. Chipotle, alongside fast-casual peers like Sweetgreen (SG), has not joined the “value meal” trend many fast-food restaurants have embarked on to draw consumers watching their spending amid inflation. Chipotle’s results are its first since its 50-to-1 stock split last month.

3. Ford Plummets as Q2 Results Lags Forecasts and It Sticks to FY Outlook

Ford Motor (F) shares are tumbling about 13% in premarket trading after the automaker’s second-quarter earnings fell short of expectations and it kept its full-year guidance unchanged. The company reported earnings per share (EPS) of $0.46, down slightly year-over-year and below analysts’ expectations of $0.55, according to Visible Alpha. Looking ahead, Ford maintained its adjusted profit guidance for the full year to be in a range of $10 billion to $12 billion, in contrast to rival General Motors (GM), which raised its outlook a day earlier. Ford’s Model e division, its electric vehicle (EV) unit, is expected to post a full-year loss of between $5 billion and $5.5 billion.

4. Chrysler, Jeep Owner Stellantis Tumbles on Excess US Inventory

Stellantis (STLA) shares are plunging 8% after the automaker reported results that lagged both analysts’ and its own expectations as it struggles with excess inventory in North America. The owner of the Chrysler and Jeep brands said it is taking “decisive actions to address operational challenges” and reported a 48% year-over-year slump in first-half net profit to 5.65 billion euros ($6.13 billion), and a 14% decline in revenue to 85.02 billion. “The Company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues,” Stellantis Chief Executive Officer (CEO) Carlos Tavares said.

5. Unilever Soars on Earnings Beat, Says Ben & Jerry’s Spinoff on Track

Unilever (UL) shares are jumping 6% in premarket trading after the company posted a first-half earnings beat, offered a lofty operating margin target for the year, and said its spinoff of Ben & Jerry’s and the rest of its ice cream division was on track to be completed by the end of 2025. Turnover rose 2.3% year-over-year to 31.1 billion euros ($33.7 billion) for the first half of 2024, and EPS was EUR1.47, beating analysts’ consensus forecasts of EUR30.97 billion and EUR1.39. Unilever, whose brands also include Dove soap and Hellmann’s mayonnaise, said its underlying operating margin for the full year is expected to be at least 18%, after saying in April it expected just “a modest improvement.”