Mixed Earnings Reports from Tesla and Alphabet Impact US Stocks
US stock indices slid Today due to the mixed second quarter earnings and ahead of results from big guns of the tech industry such as Alphabet and Tesla. At 9.50 am ET, the Dow Jones Industrial Average was down 7.58 points or 0.02 percent at 40,407.86 points while the S&P Global 500 was up 10.65 points, or 0.19 percent at 5,575.06 points. The Nasdaq Composite was up 51.70 points or 0.29 percent at 18,059.27 points.
In the first hours after the opening bell, the Dow Jones Industrial Average rose 28.29 points, or 0.07 percent to 40,443 .73 points. The S&P Global 500 index was higher by 0.89 points or 0.02 percent at 5565.30 while the Nasdaq Composite dropped 24.83 points or 0.14 percent to 17 982.74 points.
Alphabet shares rose 0.5 percent while Tesla had an exact opposite result of a 0.5 percent fall. Among the mega capital stocks Microsoft rose by 0.6 percent while Amazon.com jumped up 2.5 percent.
Some of the stocks that slagged down were United Parcel Service Stock slumping a huge 12.4% after it missed earning estimates. Along with it, NXP Semiconductors stock shed 7.2% after the third quarter revenue forecast.
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GE Aerospace stock gained 6.7 percent after better earnings were reported while Spotify Technology surged 13.6 percent after second quarter results.
Google parent Alphabet delivered a beat on both the top and bottom lines. The company praised its search and cloud businesses, announcing a $0.20 cash dividend and reported better advertising revenue. Sectors of the company that disappointed are Network revenue, service revenue, along with subscriptions, platforms, devices revenue.
Tesla missed earnings expectations in the second quarter but delivered a beat on the top line. It reported a gross margin of 18%, ahead of consensus calls of 17.4%. But free cash flow, capital expenditure and operating income led to a drop in the stock in after hours trading with shares down more than 5%.
Meanwhile, the volatility around the US presidential election has reduced over the past few days. VP Kamala Harris is projected to have secured delegate backing to become the Democratic presidential nominee, helping settle any remaining doubts of current president Joe Biden’s withdrawal from the white house race.
