What's moving markets today: April 25, 2019

11:09 a.m. ET, April 25, 2019

Southwest CEO said it might not only fly Boeing 737s in the future

Southwest Airlines (LUV) exclusively uses Boeing 737 aircraft, but CEO Gary Kelly said its fleet lineup could change.

"That doesn't mean we will be an all 737 carrier into perpetuity," Kelly said on CNBC earlier.

Kelly said he's "not happy" about the grounding the Boeing 737 Max, which consists of less than 5% of the airline's fleet, but he's not concerned that Boeing (BA) is putting speed ahead of safety.

"Our negotiations and our relationship with Boeing is something I’ll take up with them privately," he said.

Earlier today, the airline revealed in its earnings that the grounding of its 737 Max planes, the government shutdown, and other "several unexpected events" cost the airline $200 million in the first quarter.

10:55 a.m. ET, April 25, 2019

3M drags stocks lower

About an hour into the trading day, the Dow, the S&P 500 are down and the Nasdaq has given back its earlier gains.

3M (MMM) continues to be the biggest drag on the Dow, dropping 10.5%. Equipment maker Caterpiller (CAT), which was already weak following yesterday's earnings, added to its slide and was down 2.5%.

3M is also an S&P component, and one of the biggest losers in that index as well. It was only outdone by semiconductor producer Xilinx (XLNX), which fell nearly 15% after it reported earnings earlier.

10:54 a.m. ET, April 25, 2019

Snap hires its first CMO

Kenny Mitchell will be Snap's first Chief Marketing Officer.

He begins in June, and will report to CEO Evan Spiegel. Mitchell will lead the company's consumer and product marketing. Previously, he was the VP of brand content and engagement at McDonald’s (MCD).

Mitchell joins the company as Snap (SNAP) works to boost its marketing efforts to attract new users. Snapchat recently revamped its Android app, which could be key to expanding its audience.

On Snap's earnings call this week, Spiegel acknowledged the company will have to win back Android users who had a bad experience with the old version of the app. Part of that effort will be through a marketing campaign.

9:42 a.m. ET, April 25, 2019

Stocks open mixed with a lower Dow and a stronger Nasdaq

Stocks were mixed at the start of the trading day, as investors await further earnings reports.

  • The Dow was down 0.8%, or 223 points
  • The S&P 500 was down 0.2%
  • The Nasdaq was up 0.3%

Microsoft (MSFT) opened higher after yesterday’s strong earnings, rising enough to bring its market capitalization above $1 trillion immediately after the market open. Shares were last up 3.7%.

3M (MMM) reported weakening sales and slashed its forward guidance, which is weighing on its stock and the Dow. The company’s shares were off 10.2%.

Facebook (FB), which reported after the bell yesterday, was up 7.2%. The social media giant said it expected to pay up to $5 billion in a fine to the US Federal Trade Commission, but that doesn’t seem to faze investors.

9:52 a.m. ET, April 25, 2019

Severe winter weather costs UPS $80 million

A polar vortex, extreme flooding and massive amounts of snow in the first few months of the year across the United States has hurt UPS.

The shipping company said the severe weather shaved $80 million off its US bottom line in its first quarter, which is why it reported a lower-than-expected profit.

Earnings-per-share for the quarter came in slightly below expectations, but UPS still expects its full-year 2019 profit to remain on target.

UPS (UPS) shares are down 7% in early trading.

8:22 a.m. ET, April 25, 2019

Microsoft heads for $1 trillion valuation

Microsoft is en route to top $1 trillion in market cap today.

Microsoft (MSFT) shares were up nearly 5% in premarket trading at $131.15, forecasting a valuation above the psychologically-important $1 trillion mark at the market open.

The tech company was boosted by Wednesday's first quarter earnings report. Microsoft reported a 41% jump in revenues for its commercial cloud business.

Apple (AAPL) is the only US company that has reached the $1 trillion market capitalization valuation so far, zooming past the mark last year. On Wednesday, Apple's market cap stood at round $977 billion at the close. With the company's earnings due on Friday, it could rally to top the key level again.

Amazon (AMZN) is in a similar boat, with its market cap standing at $936 billion at Wednesday's close. Amazon is reporting later in the day and could take course on the $1 trillion valuation.

9:14 a.m. ET, April 25, 2019

'No pilot on the plane:' Tesla bull downgrades stock

This won't make Tesla (TSLA) executives feel any better a day after it's horrid earnings report.

Daniel Ives, a once-bullish Tesla analyst at Wedbush Securities, is expressing reservations about the company:

In our 20 years of covering tech stocks on the Street we view this quarter as one of top debacles we have ever seen while Musk & Co. in an episode out of the Twilight Zone act as if demand and profitability will magically return to the Tesla story," he wrote in a new note.

Ives said he's throwing in the "white towel on the name" and is downgrading the stock to a neutral from outperform and slashed his price target on the stock.

He expressed a loss of "confidence in the story with no pilot on the plane to navigate through this severe demand turbulence."

Tesla's shares are down more than 1% in premarket trading.

7:15 a.m. ET, April 25, 2019

3M, the company that makes Post-Its, had a terrible quarter. Dow futures are tumbling

3M's (MMM), which makes Post-It notes and Scotch tape, had a "disappointing start to the year," according to its CEO.

  • Sales slid 5% to $7.9 billion compared to the same time period a year ago.
  • It slashed its full-year guidance.
  • The conglomerate also said it's cutting 2,000 jobs around the world because of a "slower than expected" year ahead.
  • The stock is sinking 10% in premarket trading, which is sending Dow futures lower.
7:00 a.m. ET, April 25, 2019

Southwest says the government shutdown and 737 Max grounding cost it $200 million

Southwest (LUV) revealed that the government shutdown, the grounding of its Boeing 737 Max fleet and other "several unexpected events" cost the airline $200 million in the first quarter.

Earlier this month, Southwest said that it was extending changes to its flight schedule to account for the grounded aircraft's absence through much of the busy summer travel season.

The airline had a largely positive earnings report: Revenue and earnings per share slightly beat analysts' expectations.

Our first quarter 2019 net income was solid despite unexpected headwinds significantly impacting our performance," said CEO Gary Kelly in a statement.

Southwest's stock is up 3% in premarket trading.