U.S. stock futures point higher after markets plunged yesterday on recession worries; airline stocks decline sharply after Delta Air Lines ( DAL ) cut its sales and earnings guidance; Oracle ( ORCL ) stock dips after it missed quarterly sales estimates; Tesla ( TSLA ) CEO Elon Musk says he runs his businesses "with great difficulty" amid his DOGE work for the U.S. government; and Southwest Airlines ( LUV ) will start charging for checked bags for the first time amid Elliott Investment Management pressure. Here's what investors need to know today.
1. US Stocks Point Higher After Sharp Selloff Monday
U.S. stock futures are pointing higher after indexes plunged yesterday over tariffs and economic uncertainty. Nasdaq futures are 0.6% higher following a 4% drop in the prior session, its biggest one-day loss since September 2022 while S&P 500 and Dow Jones Industrial Average futures are up 0.5% and 0.4%, respectively. Bitcoin ( BTCUSD ) is higher, trading near $82,000. The 10-year Treasury yield is little changed at around 4.2%. Oil and gold futures are higher.
2. US Airline Stocks Tumble After Delta, Others Lower Outlook
U.S. airline stocks are dropping in premarket trading after Delta Air Lines ( DAL ) cut its sales and profit guidance for the first quarter Monday, citing economic "uncertainty" that has hit travel demand. American Airlines ( AAL ) and Southwest Airlines ( LUV ), in turn, lowered their outlooks early Tuesday. Delta shares are tumbling 7% in premarket trading, United Airlines ( UAL ) is down 5%, and American is falling 4%. Southwest shares are up 7% after it announced it will be charging for checked bags for the first time (see below).
3. Oracle Stock Slips on Weaker-Than-Expected Q3 Results
Oracle ( ORCL ) shares are 1% lower in premarket trading after the tech giant reported quarterly sales that were lower than analysts’ estimates , despite an optimistic outlook over artificial intelligence (AI) . Oracle posted third-quarter adjusted EPS of $1.47 on revenue that climbed 6% year-over-year to $14.1 billion, both below the analyst consensus compiled by Visible Alpha. However, CEO Safra Catz said revenue is expected to grow 15% in the upcoming fiscal year and highlighted cloud agreements with AI leaders including Nvidia ( NVDA ), Meta ( META ), OpenAI, and xAI.
4. Musk Cites 'Difficulty' Running Businesses Amid DOGE Work
Tesla ( TSLA ) CEO Elon Musk said in a Fox Business interview that he was running his other businesses "with great difficulty" over his work with the cost-cutting Department of Government Efficiency (DOGE). Tesla's stock has fallen more than 55% from its December record high amid investor concerns about potential fallout from Musk's extensive involvement in the Trump administration and weak sales figures. In an X post, Musk dismissed worries over the stock's decline, writing that it "will be fine long-term." Tesla shares are nearly 3% higher in premarket trading after sinking 15% yesterday.
5. Southwest Stock Surges on Plan to Charge for Checked Bags
Southwest Airlines (
LUV
) shares are jumping around 7% in premarket trading after the airline announced that it would end its longstanding policy of not charging fees on checked baggage. The announcement comes as Southwest also lowered its first-quarter revenue projection in a regulatory filing Tuesday morning, following other airlines in cutting their outlooks amid weakening demand. Southwest has been under
pressure
from
activist investor
Elliott Investment Management to improve its balance sheet, which included
announcing the first mass layoffs
in the company's 53-year history.
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