U.S. Stocks Dip Before Tesla, Alphabet Releases Earnings | Wall Street Today
Major U.S. stock indices started the day in the green only to close with minor declines as investors looked to big tech's financial results that could provide clues whether their earnings growth is keeping pace with rising valuations.
After the market closed Tuesday, $Tesla(TSLA.US$ and $Alphabet-A(GOOGL.US$ reported revenue that beat estimates. The two, together with their Magnificent Seven peers $NVIDIA(NVDA.US$, $Amazon(AMZN.US$, $Meta Platforms(META.US$, $Microsoft(MSFT.US$ and $Apple(AAPL.US$ are expected to post a 56.4% earnings growth for the second quarter, from a year earlier FactSet said in a report Monday.
The $S&P 500 Index(.SPX.US$ slipped 0.2% to close at 5555.74, while the $Nasdaq Composite Index(.IXIC.US$ slid 0.06% to 17,997.35. The $Dow Jones Industrial Average(.DJI.US$ lost 0.1% to 40,358.09.
Nvidia, Amazon.com, Meta Platforms, and Alphabet are four of the top five contributors to year-over-year earnings growth for the S&P 500 in the second quarter, according to the FactSet report. That, along with their heavy weighting in major indices, highlights their importance and why their financial prospects could sway the entire stock market.
Excluding these four companies, earnings growth rate for the remaining 496 companies in the S&P 500 would be 5.7% for the second quarter of 2024, according to FactSet.
(To see the options market page, click here.)
MACRO
The median sales price for existing homes climbed in June to a record high for a second straight month, cooling demand, according to the latest data from the National Association of Realtors. All four major U.S. regions posted sales declines. Year-over-year, sales waned in the Northeast, Midwest and South but were unchanged in the West.
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers," the organization's chief economist Lawrence Yun said in a press release Tuesday. "Even as the median home price reached a new record high, further large accelerations are unlikely."
SECTORS
Treasury yields declined after existing-home sales fell in June and total housing inventory gained in June, signaling prices could soon cool and strengthening the case for the U.S. Federal Reserve to start cutting interest rates in the next few months.
Crude oil fell to a six-week low as investors await the next inventory data from the Energy Information Administration on Wednesday for signs of strength in demand.
MOVERS
Alphabet shares advanced after the market closed as second quarter earnings beat estimates. "We are innovating at every layer of the AI stack," CEO Sundar Pichai said in the company's press release.
The tech giant also announced a cash dividend of 20 cents a share that will be paid on Sept. 16 to shareholders of record as of Sept. 9.
Tesla shares dipped both during regular market hours and after the close as the electric vehicle maker reported earnings that missed analysts' estimates.
$CrowdStrike(CRWD.US$ gained, rebounding from a two-day slump that took the share price to the lowest since January.
$GE Aerospace(GE.US$ shares advanced after the company raised its outlook, surpassing analysts' estimates, signaling strong demand for its commercial engines and services.
$United Parcel Service(UPS.US$ shares declined after the company cut its full year revenue outlook.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
In 10 minutes it’s history. At four I’m a dinosaur!
38KFollowers
26Following
42KVisitors
Follow
104476495 : hi