Nasdaq and S&P 500 futures fell on Wednesday as investors gave a mixed welcome to earnings reports from Microsoft and Alphabet, with more quarterly results set to flow in.
Contracts on the S&P 500 (^GSPC) dropped almost 0.4%, while those on the tech-heavy Nasdaq 100 (^NDX) slid 0.6%, pointing to a retreat from Tuesday’s gains. But Dow Jones Industrial Average (^DJI) futures were hovering just above the flatline.
Alphabet shares (GOOG, GOOGL) slid almost 7% after the Google parent beat on earnings and revenue but fell short in its cloud business. By contrast, Microsoft (MSFT) stock popped almost 4% after its own double beat showed its bets on AI were paying off for its cloud segment.
Other megacaps lost ground as the mixed picture sapped some faith in big techs, which have powered gains in stocks this year. Amazon (AMZN) stock was down 1.6% in pre-market, while Facebook parent Meta (META) — which reports results after the close Wednesday — slipped 1%.
Tech stocks have borne the brunt of pressure from surging Treasury yields, which rose again early Wednesday after stabilizing somewhat. The 10-year yield (^TNX) climbed to 4.87%, while the 30-year yield (^TYX) advanced to 4.99%, not far off the key 5% level.
But earnings again will take center stage, with reports from Boeing (BA), IBM (IBM) and General Dynamics (GD) joining Meta on Wednesday’s line-up. Before the market open, shares in Deutsche Bank jumped nearly 7% after the German lender’s profit beat estimates.
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Stock futures mostly fall after Alphabet’s cloud disappointment
The Nasdaq and S&P 500 were set to open lower Wednesday as investors digested diverging cloud-business performance in Microsoft and Google parent Alphabet’s earnings reports.
Futures on the tech-heavy Nasdaq 100 (^NDX) were 0.56% lower, while those on the S&P 500 (^GSPC) dropped 0.33%. But Dow Jones Industrial Average (^DJI) futures were up 0.13%, or 43 points.
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