Wall Street wanted to bounce back from Tuesday's steep declines, and it appeared that a slate of corporate earnings releases was exactly what the doctor ordered. Led largely by Microsoft and its big post-earnings gains, futures contracts on the Dow Jones Industrial Average (^DJI -0.11%) pointed to a higher open Wednesday morning.
Microsoft wasn't the only positive influence on the Dow early Wednesday. Both Boeing (BA -2.87%) and Visa (V 0.33%) also had financial results to report, and each stock had solid gains that added to the Dow's advance. Below, you'll find all the details you need to explain why these two members of the Dow Jones Industrials gained ground.
Boeing looks to overcome production delays
Shares of Boeing were up more than 2% in premarket trading on Wednesday morning. The aerospace giant reported first-quarter financial results that showed its ability to overcome some sizable obstacles that have been holding it back recently.
Boeing's numbers from the first three months of 2023 were mixed. Revenue jumped 28% to $17.9 billion, led by a 60% leap in revenue from its commercial aircraft division. Boeing delivered 130 commercial planes during the quarter, up 37% year over year from the 95 it delivered in same period last year. Elsewhere, Boeing's defense, space, and security division enjoyed slower revenue growth of 19%.
The problem for Boeing, though, was in its lack of profitability. Boeing lost $425 million during the quarter, and although that compared favorably to $1.24 billion in losses in the year-ago period, it wasn't as good as investors had hoped to see. Moreover, operating cash flow remained negative, showing that Boeing hasn't quite yet gotten itself back to full health.
Investors were pleased to see that Boeing is still expecting to meet its delivery guidance on its key 737 model, with plans to boost production rates to 38 aircraft per month later in 2023. Despite ongoing supply chain disruptions, Boeing is optimistic that it can keep building momentum and give its customers the stability they need to count on receiving the aircraft that they've ordered in a timely manner.
Visa charges ahead
Visa also gained ground in premarket trading, rising 1.5%. The credit card giant reported financial results from its fiscal second quarter late Tuesday, and investors liked what they saw in terms of the resilience of the global economy.
Visa's numbers from the quarter that ended March 31 reflected a healthier economic environment than many had predicted. Net revenue rose 11% year over year to $7.99 billion, and adjusted net income climbed a steeper 14% to $4.38 billion. That produced adjusted earnings of $2.09 per share, 17% higher than in the year-ago period.
The reopening of the global economy was particularly pronounced in its impact on Visa's results. Cross-border volume jumped 19% from year-ago levels, even though weakness in the European economy actually held Visa back from seeing even better results. Across the system, processed transactions topped the 50 billion mark, rising 12% from the same period last year.
Many have feared that Visa would prove to be susceptible to sluggishness in the global economy, particularly because of its dependence on healthy levels of transactional activity in order to generate revenue from card use. However, many consumers turn more to credit cards in times of financial stress. That could actually help support Visa's business even if the economy falls into a recession, and given that its business model involves taking on no credit risk, Visa seems like a better bet than many other players in the financial space right now.
