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Alphabet's Post-Earnings Plunge Adds to Dow's 500-Point Dive
Barrons.com13d agobearish
Alphabet's Post-Earnings Plunge Adds to Dow's 500-Point Dive

Alphabet, the newest addition to the Dow, dove on its latest quarterly results and it's weighing on the blue-chip index. The Dow is down 1.1%, or 563 points. Alphabet was the worst performer in the Dow, contributing a roughly 142-point drag on the index, Dow Jones Market Data showed.

S&P 500, Nasdaq close lower ahead of technology earnings
Reuters Videos13d agoneutralVIDEO
S&P 500, Nasdaq close lower ahead of technology earnings

<body><p>STORY: U.S. stocks ended lower on Wednesday, with Dow virtually flat, the S&P 500 dipping fractionally, while the Nasdaq lost more than half a percent.</p><p>Investors eagerly awaited earnings results after the closing bell from Alphabet and Tesla, the first of the Magnificent Seven megacaps to report.</p><p>Shares of Alphabet, down more than 1% at the close, dipped further in extended trading despite the Google parent topping Wall Street estimates for cloud revenue growth thanks to the AI boom.</p><p>And shares of Tesla, which also closed lower, tumbled another 2.5% in extended trading after Elon Musk's EV maker reported negative free cash flow for the first time in more than two years due to accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing.</p><p>Bob Lang, founder and chief options analyst of Explosive Options, said that strong earnings are needed to keep the market moving higher.</p><p>“The one thing that has been pretty constant here for the past 4 or 5 months for the stock market has been strong earnings and certainly a first quarter brought us about 26, 27% earnings growth. So far in the second quarter, we're seeing it at about 16 to 17%. And that's without some of the big names that have reported for the second quarter yet. We're going to have big names like, Nvidia. We're going to have big names like Micron reporting in September. That's a couple of months away, of course. But you know, we're going to have some of these companies out there that are probably going to report some stellar earnings. And, it's really been the linchpin for keeping the stock market afloat right now.”</p><p>Shares of IBM rose in extended trading after the company cut its annual revenue growth forecast, days after shocking Wall Street with a warning that corporate spending was shifting toward AI-focused data-center gear at the expense of its software and mainframe computers.</p><p>:: ServiceNow Handout</p><p>And shares of ServiceNow, down about 6.5% at the close, rose more than 3% after hours as the company raised its forecast for annual subscription revenue for the second time after beating second-quarter revenue and profit estimates, driven by growing demand for its AI-powered software.</p><p>Among other tech names, shares of Super Micro Computer rallied almost 20%, making it the S&P 500's biggest percentage gainer, a day after the server maker said it had secured more than $60 billion in new orders in its fiscal fourth quarter.&nbsp;</p></body>

Tech Earnings Will Put a Fragile Stock Market to the Test
Barrons.com14d agoneutral
Tech Earnings Will Put a Fragile Stock Market to the Test

The stock market could face its sternest test since the Iran war recovery this week, as a key component of the tech-led rally reports second-quarter earnings. Google parent Alphabet the world’s third-largest stock, will update investors on its second quarter activity after the close of trading on Wednesday, likely a few minutes after Elon Musk’s Tesla posts results for the three months ending in June. The reports will kick off a long stretch of big-ticket earnings releases, including Microsoft Meta Platforms Amazon and Apple next week, as investors face the market’s weeks-long stall.

Wall Street Turns to Value Ahead of Alphabet Earnings
Barrons.com14d agoneutral
Wall Street Turns to Value Ahead of Alphabet Earnings

What was working on Wall Street was pretty much a mirrored image of yesterday’s action. The Dow was up 64 points, or 0.1%. The top strategies were pure value, low volatility, and dividend stocks, while small-caps, growth, and momentum were lagging behind.

US stocks edge down with Iran and earnings season in focus
Reuters Videos15d agoneutralVIDEO
US stocks edge down with Iran and earnings season in focus

<body><p>STORY: Stocks started the week on a down note, with the Dow falling about six tenths of one percent, while the S&P 500 dropped two tenths and the Nasdaq ended basically flat.</p><p>:: Archive</p><p>Investors looked for moves toward de-escalation in the Middle East&nbsp;while they waited for earnings reports due from major technology companies later in the week.</p><p>Melissa Brown, managing director of investment decision research at SimCorp, says the technology firms will have to post significant earnings growth to maintain their lofty trading levels.&nbsp;</p><p>“Every company, whether it's Google or Tesla, obviously they have very different business models and different drivers of their business. But overall, I think to justify the high valuations that we see in a lot of those names, we would need to see good earnings growth, not just kind of your run-of-the-mill 10%, but you'd want to see higher earnings growth on top of good margins as well. So, we want the businesses to be profitable and growing.”</p><p>:: Archive</p><p>Meanwhile, Yemen's Iran-aligned Houthis said on Monday that they were imposing a naval blockade on Saudi Arabia, opening a new front in the U.S.-Iran war and widening the threat to global energy supplies and trade beyond the Gulf.&nbsp;</p><p>But a senior Iranian official told Reuters that mediators have passed Iran a proposal to de-escalate the war with the U.S. that would offer a 10-day ceasefire to find ways to revive an interim deal reached last month.</p><p>Stocks on the move included Paramount Skydance which lost two percent and Warner Brothers Discovery which slipped almost four percent after a judge halted their $110 billion merger temporarily as a coalition of states argued it would irreparably harm competition.</p><p>And shares of Domino’s Pizza gained two percent after the chain’s quarterly revenue edged past Wall Street estimates.</p></body>

Is Intel (INTC) Stock a Buy Before Q2 Earnings?
Insider Monkey16d agobullish
Is Intel (INTC) Stock a Buy Before Q2 Earnings?

The parabolic AI trade has sent many chip stocks to the moon, as investors have bet that hyperscalers such as Google, Microsoft, Amazon, and Meta will continue to aggressively expand AI capital expenditures. However, the rally now faces significant headwinds, with valuation and revenue sustainability concerns resurfacing amid rising competition from cheaper Chinese models. The […]