3M and Eli Lilly Surge Pre-Fed, Chegg Stumbles

Key Takeaway

• 3M (MMM) and Eli Lilly & Co. (LLY) lead pre-market gains with shares up 7.4% and 7% respectively, buoyed by strong quarterly results and optimistic forecasts.
• Chegg (CHGG) and Coursera (COUR) face significant drops of 17% and 13%, underperforming due to disappointing revenue projections, amidst a cautious market ahead of the Fed meeting.

A Mixed Bag Ahead of Fed Meeting

As the financial world holds its breath for the Federal Reserve's next move, the pre-market trading session on April 30, 2024, presents a tableau of mixed fortunes for major U.S. equities. With S&P 500 futures barely budging, Nasdaq 100 futures dipping slightly by 0.1%, and Dow Jones Industrial Average futures remaining steady, investors are navigating through a landscape of uncertainty and anticipation.

Winners and Losers in the Corporate Arena

In the spotlight, 3M (MMM) emerges as a notable gainer, with shares climbing 7.4% after the company not only reported impressive first-quarter results but also provided an optimistic full-year profit forecast amidst plans to cut its dividend post-health-care division spinoff. Similarly, Eli Lilly & Co. (LLY) enjoys a 7% uptick, buoyed by raised sales and profit outlooks driven by high demand for its leading weight-loss and diabetes medications. The tech sector sees a glimmer of hope as NXP Semiconductors (NXPI) ascends 3.2%, thanks to its first-quarter earnings surpassing expectations and a promising second-quarter forecast.

Conversely, the educational technology sector faces headwinds, with Chegg (CHGG) tumbling 17% after its second-quarter revenue projection fell short of analysts' predictions. Coursera (COUR) follows suit, dropping 13% after revising its full-year revenue and adjusted EBITDA forecasts downward, triggering a wave of lowered analyst price targets. The automotive and healthcare sectors weren't spared either, as Stellantis (STLA) and GE Healthcare (GEHC) witnessed declines of 4.3% and 7.2%, respectively, due to disappointing sales figures.

Noteworthy Movements and Strategic Shifts

Amid these fluctuations, Blend Labs (BLND) stands out with a 15% jump after securing a $150 million investment from Haveli Investments, showcasing the potential for growth and transformation in the fintech space. Sensata (ST) also captures attention with a 19% surge, propelled by a new cooperation agreement with Elliott Investment Management and the consequential CEO departure, hinting at significant strategic shifts within the company.