Traders work on the trading floor of the New York Stock Exchange (NYSE) on July 22, 2024.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
waiting game
Wall Street closed just below break-even points ahead of the tech giants’ earnings reports. this S&P 500 Index Shares fell 0.16%, their best performance since early June. this Nasdaq Index Down 0.06% Dow Jones Industrial Average down 0.14%. 10-Year Treasury Bond Yield Ministry of Finance Not much has changed, but US oil prices fell to them lowest level in six weeks. Nasdaq futures fall After Alphabet and Tesla released their earnings reports.
Tesla Motors revenue declines
Teslaof Second quarter profit fell short of expectations Auto sales fell for the second consecutive quarter. Although revenue beat expectations, the company reported a 7% decline in auto sales, partially offset by an $890 million regulatory credit. After the earnings report was released, Tesla’s stock price fell nearly 8% in after-hours trading. It comes after Tesla endured a challenging first half of the year, which included layoffs and a drop in deliveries from the previous year.
YouTube ad misses
letterGoogle’s parent company, Second-quarter results announced were largely in line with expectationsBut YouTube’s ad revenue has been disappointing. Driven by search and cloud computing, overall revenue increased by 14% year-on-year, quarterly revenue exceeded US$10 billion for the first time, and operating profit exceeded US$1 billion for the first time. YouTube’s ad revenue fell short of expectations due to increased competition from platforms like TikTok. Chief Financial Officer Ruth Porat said the company is working on Waymo secures new $5 billion multi-year investment. Alphabet shares fell 2% in after-hours trading.
gm skid
General Motors‘ Exceeded second-quarter profit expectations But shares fell 6% as the company restructures its troubled self-driving car and China operations. GM also said Slow down all-electric car plans. Analysts worry that GM’s profits may have peaked. Morgan Stanley’s Adam Jonas warned that historical trends suggest the current positive performance may not be sustainable. Tom Narayan of RBC Capital Markets highlighted that GM expects second-half profit to be $2.5 billion lower than in the first half.
UPS sink
United Parcel Service Missed second-quarter profit and revenue expectations and lowered its 2024 revenue guidance. The company’s shares fell 12%, marking its worst trading day ever. UPS now expects revenue of about $93 billion in 2024, down from its previous forecast of $94.5 billion. The report comes as weak freight demand and weak pricing in the shipping industry are creating what some say is Global freight decline.
(PRO) New Goal
barclays bank Raise full-year S&P 500 target to 5,600, believes strong technology earnings will offset weakness in other industries. That was in line with the median forecast of strategists surveyed by CNBC Pro, even as the S&P 500 has soared 16% this year and hit a record high.
bottom line
Despite former President Donald Trump’s growing popularity among the public Cryptocurrency Enthusiast and BillionaireIt cannot be ignored that the Biden administration has allowed investors to trade Bitcoin and Ethereum through a growing number of exchange-traded funds.
ether ETFs officially begin trading in the U.S. on Tuesday, marking an important milestone for cryptocurrencies. The overall response was muted compared to the debut. Bitcoin Net inflows into ETFs exceeded $16 billion earlier this year.
Galaxy Digital CEO Mike Novogratz said in an interview with “Squawk Box”: “We believe that within the first six months, the amount of funds flowing into the Ethereum ETF will account for about 20% of the Bitcoin (ETF) funds. Despite this, , he said this is a significant development for cryptocurrencies.
Samara Cohen, chief information officer for ETF and index investing at BlackRock, highlighted the technical differences between the two cryptocurrencies. “Bitcoin has received widespread attention and is known as digital gold“People may need more time to understand the applications of Ethereum,” Cohen said in an interview with CNBC’s “Squawk on the Street.”
“While Bitcoin is indeed known for its scarcity, with its limited supply of 21 million, Ethereum is a completely different use case. Ethereum is known for its utility; it is a programmable blockchain designed to Let developers build decentralized applications on the blockchain ecosystem.
“For people like us who are really interested in what the next phase of the market looks like and the possibilities of deploying new technologies to create innovative use cases and applications, this is a very important space in Ethereum to watch. .
Ethereum may be one of the future, but investors are also focused on earnings from companies that are off to a strong start. FactSet data shows that about 20% of S&P 500 companies reported second-quarter results, and 80% of them beat expectations.
Analysts at Wolff Research expect earnings from the so-called Big Seven to “Inspire” meaningful uptrends. “We believe a batch of better-than-expected reports could halt the current sell-off and spark a strong rebound,” Wolfe Research said.
Well, a “strong rebound” may still be some way off, because both Tesla and letter Data released after the close was disappointing. You can read more Stocks with the biggest gains after hours trade here
— CNBC’s Jesse Pound, Tanaya Macheel, Jennifer Elias, Lora Kolodny, Samantha Subin, Alex Harring, Fred Imbert and Spencer Kimball contributed to this report.
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