2024-07-25 15:18:08
Wall Street is trading on a negative note, as might be expected, after disappointing results from Alphabet and Tesla.
The tech Nasdaq fell 2%, while the S&P 500 slipped 1.4%. The Dow Jones industrial average lost 341 points, or 0.9%.
Shares in Google’s parent company Alphabet fell nearly 4%. YouTube’s ad revenue fell short of estimates. Meanwhile, Tesla shares tumbled 12% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.
Tesla: In reverse its stock after the disappointing results
Other large-cap tech stocks fell in line with Alphabet and Tesla. Nvidia and Meta Platforms each lost 3%, while Microsoft slipped 2%.
The earnings reports mark investors’ first look at how megacap companies fared during the second quarter.
So far, however, the earnings season as a whole is off to a strong start. More than 25 percent of S&P 500 companies have reported second-quarter earnings, with about 80 percent beating expectations, according to FactSet data.
Processing is sick
However, weaker-than-expected manufacturing data in the US increased investor concerns on Wednesday morning.
The US PMI fell to 49.5 in July, unexpectedly slipping into contraction as new orders, output and inventories fell.
European markets also fell on Wednesday as investors weighed the latest earnings from regional banks and US technology companies.
The pan-European Stoxx 600 fell 0.6%, with most sectors and major bourses in negative territory.
Technology shares fell nearly 2 percent, while travel and leisure shares lost 0.4 percent after Easyjet reported higher earnings and predicted a second consecutive record summer.
The shares of Deutsche Bank fell close to 8% as the bank snapped a four-year winning streak on Wednesday and confirmed it would not make a second share buyback this year.
In Athens, the Stock Exchange ended today’s session with a fall of 0.91% to 1,466 points, with strong pressure on the banks.