Nasdaq futures fall after Alphabet, Tesla report earnings: Live updates

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on July 22, 2024.

Timothy A. Clary | AFP | Getty Images

Nasdaq stock futures traded lower Tuesday night after megacap tech companies Alphabet and Tesla reported their second-quarter results.

Futures tied to the tech-heavy Nasdaq 100 moved down 0.5%, while S&P 500 futures fell 0.4%. Dow Jones Industrial Average futures slipped 0.2%.

Shares of Google parent company Alphabet fell 1.7% in extending trading. Although Alphabet reported a top and bottom line beat, Youtube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined more than 6% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.

At the start of the week, around 20% of the S&P 500 companies that had reported their second-quarter earnings, with 80% of them topping expectations, according to FactSet data.

During Tuesday’s main trading session, the broad market index pulled back around 0.2%, while the Nasdaq Composite and the Dow inched down around 0.1% each.

Investors have largely priced in the chances of the Federal Reserve cutting interest rates at its September meeting. Combined with rising confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small caps and industrials rising in recent weeks.

“You’re left with an economy that continues to grow, corporations that continue to manage the environment very, very well and a market that’s reflecting that in its elevated valuations,” said Solus Alternative Asset Management chief strategist and economist Dan Greenhaus.

Regarding the market rally, Greenhaus added, “As long as something doesn’t change on that front, I don’t know why I would be any more scared tomorrow or the next day that I’ve been over the previous eight, three months.”

On the earnings front, investors will be looking at AT&T, General Dynamics and Boston Scientific’s quarterly results Wednesday morning.

Tesla records fourth straight earnings miss

Tesla posted weaker-than-expected earnings on Tuesday, marking the electric vehicle maker’s fourth straight earnings miss — the first time for the company.

Earnings came in 17% below consensus in the second quarter, which was its largest earnings miss since January 2021.

Gross margins for Tesla fell to 14.6% in the latest quarter, down by half from 30% in the first quarter of 2022.

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Tesla shares on Tuesday

— Hakyung Kim

Stocks making the biggest moves after hours

Check out the companies making headlines in extended trading:

Alphabet — The tech giant slipped 1% despite a beat on both top and bottom lines in the second quarter. Alphabet earned $1.89 per share on $84.74 billion in revenue. Consensus estimates had called for earnings of $1.84 per share on $84.19 billion in revenue. However, revenue at its YouTube advertising segment missed forecasts.

Tesla — Shares of the electric vehicle maker declined 4.7% after second-quarter earnings missed consensus estimates. Tesla reported adjusted earnings per share at 52 cents, while analysts surveyed by LSEG had called for 62 cents per share. On the other hand, the company posted $25.5 billion in quarterly revenue, which was slightly higher than the $24.77 billion estimated by the Street.

Visa — Shares slipped more than 2% after the company posted a revenue miss in its fiscal third quarter. Visa reported $8.9 billion in revenue, which came in slightly below the $8.92 billion forecast by analysts polled by LSEG. Meanwhile, payments volume rose 7% in the quarter.

Seagate — Shares rallied more than 6% after Seagate posted an earnings and revenue beat in the fiscal fourth quarter. Seagate earned $1.05 per share, excluding items, on $1.89 billion in revenue. Analysts surveyed by LSEG had estimated it would earn 75 cents per share on revenue of $1.87 billion. The company cited an improving cloud environment for its stronger performance.

The full list can be found here.

— Hakyung Kim