Global Stock Markets Dip on Disappointing US Tech Earnings

European Shares Set To Open Lower As US Earnings Disappoint

(RTTNews) - European stocks are likely to open on a tepid note Wednesday after Google parent Alphabet and electric vehicle maker Tesla reported disappointing financial results. Alphabet topped quarterly revenue estimates, but advertising sales growth slowed, dampening the search giant's recovery from a brief dip in its core business. Tesla's Q2 profit missed estimates amid price cuts to revive demand and increased spending on AI projects. Asian markets were mostly lower, with Japan's Nikkei falling over 1 percent as the yen strengthened ahead of a Bank of Japan policy meeting next week where a rate hike remains on the table. The dollar index held close to a two-week high ahead of U.S. President Joe Biden's final Oval Office speech to explain why he dropped out of November's election. U.S. two-year yields edged lower after a solid $69 billion auction, which reinforced market bets on a rate cut in September. Gold consolidated above $2,400 per ounce after snapping a four-day losing streak on Tuesday. Oil prices edged up in Asian trade after industry data showed a draw in U.S. inventories. In economic releases, purchasing managers' index figures across the globe will be in focus today. U.S. data on Q2 GDP is due on Thursday and PCE data - the Fed's favored measure of inflation - on Friday. U.S. stocks struggled for direction before eventually ending modestly lower overnight as investors assessed mixed earnings reports and monitored the fast-changing presidential contest. Coca-Cola and GE Aerospace posted impressive earnings, but General Motors reported weakness in its China business and UPS reported lower profits and revenues. The Dow slid 0.1 percent, the tech-heavy Nasdaq Composite ended little changed and the S&P 500 eased 0.2 percent. European stocks closed on a mixed note Tuesday as tech shares rallied, offsetting losses in the mining sector. The pan European STOXX 600 inched up 0.1 percent. The German DAX climbed 0.8 percent, while France's CAC 40 gave up 0.3 percent and the U.K.'s FTSE 100 declined 0.4 percent. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

US stocks lower after Google, Tesla results

Wall Street stocks retreated early Wednesday following declines by Tesla and Google parent Alphabet after earnings results as market watchers worried over excessive equity prices. Tesla dropped more than 10 percent in opening trade after missing earnings estimates as CEO Elon Musk touted progress on robotic and artificial intelligence technology. Meanwhile Alphabet fell 5.2 percent after topping analyst estimates in general but reporting disappointing figures for its Youtube business. About 10 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 40,219.35. The broad-based S&P 500 fell 1.1 percent to 5,497.58, while the tech-rich Nasdaq Composite Index tumbled 1.8 percent to 17,680.65. Briefing.com analyst Patrick O'Hare pointed to "consolidation interest stemming from valuation angst" as a factor in the early losses following the rise in major indices so far in 2024. Wednesday's calendar includes new home sales and earnings from Ford.

European stocks open lower on disappointing earnings

European markets fell Wednesday after mixed earnings. FTSE 100 dropped 0.4%, CAC 40 lost 1.2%, DAX down 0.8%. Wall Street closed lower Tuesday. Tesla's Q2 profits fell 45% due to price cuts and AI investment. Alphabet exceeded expectations. LVMH, including Louis Vuitton, saw shares drop 5%, net profits down 14%.European stock markets tumbled at the open on Wednesday following mixed corporate earnings reports. London's FTSE 100 dropped 0.4 percent to 8,136.64 points while the Paris CAC 40 sank 1.2 percent to 7,511.57 and the Frankfurt DAX shed 0.8 percent to 18,416.71. After Wall Street indices closed in the red on Tuesday, Tesla reported that its profits fell 45 percent in the second quarter owing to price cuts and aggressive AI investment. By contrast, Google-parent Alphabet posted profit and revenue that beat expectations as its AI-amped cloud and search ads businesses thrived. In Europe, shares in French luxury giant LVMH, home to Louis Vuitton, sank five percent on Wednesday after it logged a 14-percent drop in net profit in the first half of the year.

Disappointing Earnings News Contributing To Sell-Off On Wall Street

(RTTNews) - Stocks have moved sharply lower during trading on Wednesday, with the major averages adding to the modest losses posted in the previous session. The Nasdaq has shown a particularly steep drop amid weakness among tech stocks. In recent trading, the Nasdaq and the S&P 500 have fallen to new lows for the session. The Nasdaq is down 426.16 points or 2.4 percent at 17,571.19, the S&P 500 is down 84.25 points or 1.5 percent at 5,471.49 and the Dow is down 293.01 points or 0.7 percent at 40,065.08. The sell-off on Wall Street comes amid a negative reaction to corporate earnings news from companies like Tesla (TSLA) and Alphabet (GOOGL). Shares of Tesla have plummeted by 11.4 percent after the electric vehicle maker reported weaker than expected second quarter earnings. Google parent Alphabet has also slumped by 3.9 percent after reporting second quarter earnings that beat analyst estimates but missing expectations for YouTube advertising revenue. Shares of Meta Platforms (META) have also tumbled by 3.8 percent after the Facebook parent announced a free version of its Llama artificial intelligence model. On the other hand, telecom giant AT&T (T) has jumped by 4.3 percent after reporting second quarter earnings in line with estimates and stronger than expected phone subscriber growth. In U.S. economic news, the Commerce Department released a report unexpectedly showing a continued decrease by new home sales in the U.S. in the month of June. The report said new home sales fell by 0.6 percent to an annual rate of 617,000 in June after plummeting by 14.9 percent to a revised rate of 621,000 in May. Economists had expected new home sales to surge by 3.4 percent to a rate of 640,000 from the 619,000 originally reported for the previous month. With the unexpected decline, new home sales slumped to their lowest level since hitting an annual rate of 611,000 in November 2023. Sector News Semiconductor stocks have shown a substantial move to the downside on the day, with the Philadelphia Semiconductor Index plunging by 2.8 percent to its lowest intraday level in well over a month. Significant weakness is also visible among software stocks, as reflected by the 2.2 percent slump by the Dow Jones U.S. Software Index. Airline, retail and consumer stocks are also seeing notable weakness, while gold stocks have moved sharply higher amid an increase by the price of the precious metal. Other Markets In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index slumped by 1.1 percent, while China's Shanghai Composite Index fell by 0.5 percent. The major European markets have also moved to the downside on the day. While the French CAC 40 Index is down by 0.9 percent, the German DAX Index is down by 0.7 percent and the U.K.'s FTSE 100 Index is down by 0.1 percent. In the bond market, treasuries are extending the modest upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 4.219 percent. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.