Traders work on the trading floor of the New York Stock Exchange (NYSE) on July 22, 2024 in New York City.
Timothy A. Clary | AFP | Getty Images
Nasdaq stock futures were lower Tuesday night after big tech companies Alphabet and Tesla reported second-quarter results.
Futures for the tech-heavy Nasdaq 100 fell 0.6%, while futures for the S&P 500 fell 0.4%. Dow Jones Industrial Average futures fell 0.2%.
Shares of Google parent Alphabet fell 1.7% in extended trading. While Alphabet’s revenue and profit beat estimates, YouTube ad revenue fell short of consensus estimates. At the same time, Tesla’s stock price fell more than 6% due to lower-than-expected results and a 7% annual decline in automotive revenue.
FactSet data shows that at the beginning of this week, about 20% of S&P 500 companies reported second-quarter earnings, and 80% of them beat expectations.
During Tuesday’s main trading session, the broader market index retreated about 0.2%, while the Nasdaq and the Dow each edged down about 0.1%.
Investors have largely priced in the possibility of a rate cut by the Federal Reserve at its September meeting. Coupled with growing confidence in a soft landing, the market has continued to rally, with rate-sensitive sectors such as small-cap stocks and industrials rising in recent weeks.
“The economy continues to grow, companies continue to manage the environment very, very well, and the market’s valuations reflect that,” said Dan Greenhaus, chief strategist and economist at Solus Alternative Asset Management.
Regarding the market rebound, Greenhouse added, “As long as nothing changes on that front, I don’t know why I would be more scared tomorrow or the day after tomorrow than I have been for the past eight or three months.”
On the earnings front, investors will be watching quarterly results from AT&T, General Dynamics and Boston Scientific on Wednesday morning.
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