5 Things to Know Before the Stock Market Opens

Tesla (TSLA) shares are plunging in premarket trading after the electric vehicle (EV) maker posted a quarterly earnings slump and confirmed the delay of its much-anticipated robotaxi launch to October; Alphabet (GOOGL) shares are falling after the Google parent posted slowing advertising growth even as its strength in the cloud led to a second-quarter earnings beat; LVMH’s (LVMUY) below-forecast results showed that weaker Chinese and overall consumer spending is hurting even the world’s largest luxury brand; Chipotle Mexican Grill (CMG) is expected to show second-quarter profit and sales gains when the burrito chain reports earnings after the bell; and Thermo Fisher Scientific (TMO) shares are slipping despite an earnings beat and guidance raise. U.S. stock futures are falling as investor disappointment with tech giants Tesla and Alphabet weighs on investors after all three major indexes closed lower yesterday. Here’s what investors need to know today.

1. Tesla Sinks After EV Maker Posts Profit Slump, Robotaxi Delay

Tesla (TSLA) shares are plunging 8% in premarket trading after the electric vehicle maker posted a 45% drop in second-quarter profit as demand for EV cools and the average selling price of its vehicles decline. Also weighing on the results of Magnificent Seven tech giant was its warning of a rise in artificial intelligence (AI) costs and Chief Executive Officer (CEO) Elon Musk’s confirmation that the planned date for its highly anticipated robotaxi event had been delayed to October 10 from August 8. 

2. Google Parent Alphabet Posts Earnings Beat But Ad Sales Disappoint

Alphabet (GOOGL) shares are falling 3% in premarket trading after the Google parent posted slowing advertising growth even as it reported second-quarter results that beat analysts’ expectations on the back of strength in its cloud services and core search business. Ad sales, a key revenue driver at Google, rose 11.1% from last year, but that was down from the 13% year-over-year jump it registered in the first quarter. Alphabet Chief Financial Officer (CFO) Ruth Porat also told investors that depreciation and higher expenses from AI investments could affect operating margins in the third quarter.

3. LVMH Sales Slip Shows Impact of China Weakness, Frugal Consumer

LVMH’s (LVMUY) second-quarter results, with tepid sales disappointing investors, showed that the pullback by consumers on high-end items and cooling Chinese spending is affecting even the world’s largest luxury firm. The company, whose brands include Dior and Louis Vuitton, reported Q2 year-over-year organic revenue growth of just 1% to 20.98 billion euros. Sales in Asia excluding Japan plunged 14%, although Chinese spending growth in Japan and Europe was “strong.” LVMH shares fell 4% in French trading, while trench coat maker Burberry (BURBY), Gucci owner Kering (PPRUY), and Cartier owner Richemont (CFRUY) were all lower in European trading. 

4. Chipotle to Report After the Bell in First Results Since Stock Split

Chipotle Mexican Grill (CMG) is expected to show second-quarter profit and sales gains when the burrito chain reports earnings after the bell. The results are its first since its 50-for-1 stock split last month. Analysts expect Chipotle‘s revenue to rise 17% year-over-year, with profits projected to jump about 28%, according to estimates compiled by Visible Alpha. While the results are expected to show the company’s resilience as its rivals suffer from the inflation-fueled downturn in consumer spending, Baird analysts noted that some indicators show demand “softening” earlier this month. Chipotle shares are little changed in premarket trading.

5. Thermo Fisher Beat Estimates, Lifts Guidance

Shares of Thermo Fisher Scientific (TMO) are edging lower in premarket trading even after the medical device maker posted higher-than-forecast results and upped both its full-year revenue and earnings outlook. Its second-quarter revenue slipped 1% from last year to $10.54 billion, while adjusted earnings per share (EPS) was $5.37, with both beating analysts’ consensus estimates compiled by Visible Alpha. Thermo Fisher raised its full-year adjusted EPS guidance to $21.29 to $22.07 from the prior range of $21.14 to $22.02. “We have made very good progress through the halfway point of the year and are in a great position to deliver differentiated performance in 2024,” CEO Marc Casper said.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.