Stocks fell due to disappointing earnings from Tesla and Google, with market uncertainty lingering.

From Nasdaq: 2024-07-24 11:32:47

Stocks were down today, with the S&P 500 falling 1.15% and the Nasdaq 100 dropping 1.92%. Disappointing earnings from Tesla and Alphabet, as well as European companies, contributed to the decline. Market focus remains on upcoming tech earnings next week. Key companies reporting include Microsoft, Meta, Apple, Amazon, and Nvidia.

Q2 earnings for S&P 500 companies expected to rise 9% y/y with many beating forecasts so far. Investors are awaiting Friday’s PCE deflator report for clues on inflation and potential rate cuts. Consensus is for inflation to fall to 2.4% y/y (headline) and 2.5% y/y (core), signaling potential rate cuts by the Fed.

Chances for a rate cut at next week’s FOMC meeting at 7%, but 100% for September meeting. Overseas markets are down, with Euro Stoxx 50 falling 0.81% and Shanghai Composite sliding for the third straight day. Japanese index also closed down. Interest Rates: 10-year T-notes up, yield down at 2.25%.

Alphabet drops 4% due to YouTube weakness, Tesla down 10% due to disappointing earnings, and AT&T rises 3% on new subscribers. Texas Instruments up on in-line results, Visa down 3% on missed revenue. Blackstone Mortgage Trust down 10% after cutting dividend amid loan portfolio concerns.

Many companies releasing earnings on 7/24 including IBM, Ford, Chipotle, Waste Management, among others. Market outlook remains uncertain with focus on tech earnings and inflation rates.



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