Key Highlights in Finance Today: Amazon, Fed Meeting, Eli Lilly, McDonald’s, Coca-Cola, AMD

Amazon is expected to report significant gains in its first-quarter results after the closing bell, with investors eagerly awaiting updates on its ads, Prime Video, AI strategy, and the possibility of dividend plans. The tech giant is projected to post substantial increases in both revenue and profit, with a focus on its cloud platform, AWS, and its market share. Amazon, which recently joined the Dow Jones Industrial Average, is among a few non-dividend paying stocks in the index, sparking speculation about a potential dividend announcement. Shares in Google parent Alphabet surged last week after announcing its first-ever dividend distribution, adding to the anticipation surrounding Amazon’s earnings report.

In other news, the Federal Reserve kicks off its two-day interest rate policy meeting today, with expectations that the central bank will leave the fed funds rate unchanged as it continues to combat inflation and economic pressures with high interest rates. Recent economic data showing higher-than-expected inflation levels has prompted the Fed to maintain its current stance on interest rates.

Eli Lilly shares surged after the drugmaker raised its full-year profit forecast on the back of strong demand for its weight-loss drugs Zepbound and Mounjaro, posting higher-than-expected first-quarter results. The company’s adjusted earnings outlook and revenue forecast were raised significantly, reflecting the positive momentum in its key products.

Consumer giants McDonald’s and Coca-Cola had divergent results, with McDonald’s trailing analysts’ forecasts and Coca-Cola beating expectations. McDonald’s reported lower-than-expected earnings per share and revenue for the quarter, while Coca-Cola posted higher-than-expected top and bottom-line results, increasing its full-year outlook for organic revenue growth.

Advanced Micro Devices is set to report its quarterly earnings after the close, with investors focused on its AI chip sales and data center revenue. The chip maker is expected to show higher earnings, with revenue from its data center segment potentially offsetting seasonal declines. Investors will be watching for insights on how AMD’s newly launched processors will help it compete with rivals like Nvidia and Intel.

Overall, U.S. stock futures are slightly lower amid the flurry of earnings reports, making it an eventful day for investors. Stay tuned for more updates on these key developments in the financial markets.