U.S. futures edged lower on Wednesday morning after a strong performance from major indices the day before. The dip is primarily due to Alphabet’s (GOOGL) mixed Q4 earnings report, which hurt market sentiment. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.73%, 0.22%, and 0.5%, respectively, at 3:26 a.m. EST, February 5.
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Stocks climbed on Tuesday as investors assessed the latest developments in the tariff war between the Trump administration and China, and reviewed various corporate earnings reports. The S&P 500, the Nasdaq Composite, and the Dow Jones gained 0.7%, 1.4%, and 0.3%, respectively.
In the after-market session, Alphabet stock plunged nearly 8% after the Google parent company reported weaker-than-expected cloud revenue, despite huge investments in artificial intelligence (AI). This fueled investor concerns about the company’s ability to capitalize on its AI ambitions.
Also, Chipotle (CMG) stock declined 5% after reporting slower-than-expected same-store sales growth. In contrast, Snap (SNAP) stock rose 5.6% after the social media company reported better-than-expected fourth-quarter results.
Looking ahead, investors are focused on several key economic data releases due today. These include the Private Payrolls report by Automatic Data Processing (ADP), the S&P final U.S. Services Purchasing Managers’ Index (PMI), and the Institute for Supply Management’s Services Index.
Further, the major companies scheduled to report earnings today include Walt Disney (DIS), Uber Technologies (UBER), Yum! Brands (YUM), Formfactor (FORM), Ford (F), MicroStrategy (MSTR), and Arm Holdings (ARM).
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.501%. Simultaneously, WTI crude oil futures are trending lower, hovering near $72.57 per barrel as of the last check.
Elsewhere, European indices opened lower on Wednesday as investors looked forward to earnings reports from some major companies.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices were mixed today as traders monitored the escalated trade war between the U.S. and China.
At the same time, the Hang Seng index closed lower by 0.93%. Further, China’s Shanghai Composite declined 0.65%, while the Shenzhen Component index gained 0.08%. Also, Japan’s Topix and Nikkei indices ended higher by 0.09% and 0.27%, respectively.
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