In a surprising turn of events, Salesforce Inc. is set to have a major impact on the Dow Jones Industrial Average at Thursday’s market open. The tech giant’s postmarket decline of nearly $43 in after-hours trading on Wednesday is expected to slice a whopping 281 points off the Dow Industrials.
This significant drop comes after Salesforce’s second-quarter forecasts for revenue and earnings per share fell short of analysts’ consensus estimates. According to FactSet data, the company’s disappointing performance has sent shockwaves through Wall Street.
Because the Dow is weighted by price, every dollar change in any component stock moves the average up or down by about 6.6 points. With Salesforce’s $42.60 loss, the Dow is projected to see a 281-point decline when trading begins on Thursday morning.
This news comes on the heels of activist investor Nelson Peltz selling his entire stake in Disney following a proxy battle defeat. Peltz sold all of his Disney stock at around $120 a share, making approximately $1 billion on the position. The exit comes after Peltz’s Trian Partners lost a proxy battle at Disney in early April.
In addition to Salesforce’s impact on the market, other companies are also making headlines after hours. UiPath saw a significant drop of 30% after announcing the resignation of its CEO, while HP Inc. rose 3% after posting better-than-expected earnings.
Overall, the stock market is facing some turbulence as stock futures opened lower on Wednesday evening. Futures tied to the Dow Jones Industrial Average declined 258 points, while S&P 500 and Nasdaq-100 futures also fell.
Stay tuned for more updates on how these developments will continue to shape the market in the coming days.
