Stock market news today: Nasdaq leads losses as first Big Tech earnings fail to deliver
07/24/2024 20:51
Disappointing Alphabet and Tesla earnings have stirred up worries that Big Tech's power to fuel stock market gains is fading.
The Nasdaq led US stocks lower on Wednesday, after lackluster Alphabet and Tesla earnings stirred up worries that Big Tech's power to fuel gains is fading.
The benchmark S&P 500 (^GSPC) slipped about 0.9%, and the Dow Jones Industrial Average (^DJI) dropped about 0.4%. The tech-heavy Nasdaq Composite (^IXIC) led the losses, falling about 1.5%.
Stocks are sinking as investors digest mixed quarterly earnings from Google parent Alphabet (GOOGL, GOOG) and Tesla (TSLA), the first of the "Magnificent 7" megacaps to report. EV maker Tesla's stock price slid almost 9% in morning trading, while Alphabet shares dropped about 5%.
Read more: 32 charts that tell the story of markets and the economy right now
Investors are bracing for the next wave of earnings to flood in, with Chipotle (CMG), Ford (F) and IBM (IBM) due to post results after the bell on Wednesday.
Also ahead are readings on US manufacturing and services activity in July. Next up are Thursday's second-quarter GDP print and Friday's key release on June PCE inflation, the report favored by the Federal Reserve.
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Tech stocks lead losses at Wednesday's open
Lackluster Alphabet (GOOGL, GOOG,) and Tesla (TSLA) earnings stirred up worries that Big Tech's power to fuel gains is fading.EV maker Tesla's stock price slid almost 9% in morning trading, while Alphabet shares dropped about 5%.
This led to a sea of red in the Nasdaq on Wednesday, where other tech stalwart Nvidia (NVDA) was also down more than 3%
Source: Yahoo Finance Off the phone with: AT&T CFO
Not exactly a blowout quarter from AT&T (T) just crossing the wires – in-line earnings and a reiteration of guidance (which the Street may see as a letdown).
I caught up with AT&T CFO Pascal Desroches and asked him about the consumer weakness we are starting to hear being called out on earnings calls:
“We are probably a bit of a lagging indicator. We're not going to be the ones to first see weakness. When you look at the criticality of phone service, this is probably one of the last things a consumer is going to cut out,” Desroches told me.
He added that it looks like “consumers are hanging in there.”
Musk on Nvidia
And it's time to start guessing how huge Nvidia's (NVDA) quarter will be when it reports in a few weeks.
What Tesla (TSLA) CEO Elon Musk said about the chip-maker on his earnings call last night:
"I'm incredibly impressed by Nvidia's execution and the capability of their hardware. And what we are seeing is that the demand for Nvidia hardware is so high that it's often difficult to get the GPUs. And there just seems this, I guess I'm quite concerned about actually being able to get state-of-the-art Nvidia GPUs when we want them."
