Following the lackluster performance seen in the previous session, stocks are likely to come under pressure in early trading on Thursday. The major index futures are currently pointing to a sharply lower open for the markets, with the S&P 500 futures down by 1.1 percent.

A negative reaction to earnings news from Meta Platforms (META) is likely to weigh on Wall Street, as the Facebook parent is plunging by 15.5 percent in pre-market trading.

Meta Platforms reported first quarter results that beat estimates on both the top and bottom lines but provided disappointing second quarter revenue guidance.

Tech giant IBM Corp. (IBM) is also likely to come under pressure after reporting weaker than expected first quarter revenues. IBM also announced a deal to acquire HashiCorp (HCP) for $35 per share in cash, representing an enterprise value of $6.4 billion.

On the other hand, fellow Dow components Merck (MRK) and Honeywell (HON) are seeing pre-market strength after reporting first quarter results that exceeded analyst estimates.

The futures saw further downside following the release of a Commerce Department report showing the U.S. economy grew by much less than expected in the first quarter of 2024.

The Commerce Department said gross domestic product increased by 1.6 percent in the first quarter after surging by 3.4 percent in the fourth quarter of 2023. Economists had expected GDP to jump by 2.5 percent.

The notable slowdown in GDP growth primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending.

Meanwhile, the Labor Department also released a report showing an unexpected decrease by first-time claims for U.S. unemployment benefits in the week ended April 20th.

The report said initial jobless claims fell to 207,000, a decrease of 5,000 from the previous week’s unrevised level of 212,000. The dip surprised economists, who had expected jobless claims to inch up to 214,000.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on pending home sales in the month of March. Pending home sales are expected to rise by 0.3 percent in March after jumping by 1.6 percent in February.

Stocks turned in a lackluster performance during trading on Wednesday following the strong upward move seen to start the week. After moving to the upside early in the session, the major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the day narrowly mixed. While the Dow edged down 42.77 points or 0.1 percent to 38,460.92, the S&P 500 crept up 1.08 points or less than a tenth of a percent to 5,071.63 and the Nasdaq inched up 16.11 points or 0.1 percent to 15,712.75.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index plunged by 2.2 percent, while Hong Kong’s Hang Seng Index climb by 0.5 percent.

The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index is up by 0.7 percent, the German DAX Index is down by 0.5 percent and the French CAC 40 Index is down by 0.8 percent.

In commodities trading, crude oil futures are climbing $0.45 to $83.26 a barrel after falling $0.55 to $82.81 a barrel on Wednesday. Meanwhile, after slipping $3.70 to $2,338.40 an ounce in the previous session, gold futures are edging down $1 to $2,337.40 an ounce.

On the currency front, the U.S. dollar is trading at 155.63 yen versus the 155.35 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0695 compared to yesterday’s $1.0699.