Last Updated: 4:05 AM EST
Stock indices finished today’s trading session in the red after recent tech earnings spooked investors. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 3.65%, 2.32%, and 1.25%, respectively. A mixed bag of economic news didn’t help either.
Earlier today, Markit released its preliminary monthly report for the U.S. Manufacturing Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 49.5, which was lower than the expected 51.7.
It’s worth noting that this indicator is also lower than last month’s reading of 51.6 but has been in an overall uptrend ever since its post-pandemic bottom in January 2023, when it hit a low of 46.2.
However, Markit also released its preliminary monthly report for the U.S. Services Purchasing Managers’ Index, which, similar to the previous report, measures the activity levels of purchasing managers in the service sector. The report came in at 56, which was higher than the expected 54.7. It, too, has been in a general uptrend since January 2023.
First Published: 5:02 AM EST
U.S. futures declined on Wednesday morning following earnings reports from Tesla (TSLA) and Alphabet (GOOGL) (GOOG), marking the start of earnings season for the Magnificent Seven. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 1.1%, 0.78%, and 0.54%, respectively, at 4:28 a.m. EST, July 24.
In the extended trading session yesterday, shares of Alphabet fell 2.2% despite topping Q2 estimates. Further, Tesla stock dipped nearly 8% after posting mixed Q2 results.
Coming to regular trading on Tuesday, the Dow Jones, the S&P 500, and the Nasdaq Composite lost 0.14%, 0.16%, and 0.06%, respectively. The decline came as investors evaluated a slew of earnings releases.
Among major stock movers from yesterday, United Parcel Service (UPS) shares dropped 12.1% on lower-than-expected Q2 results. Additionally, Paccar (PCAR) declined 11% after it reported weak second-quarter earnings performance.
Looking ahead to key economic data, a preliminary reading of the S&P Global Manufacturing Purchase Manager’s Index (PMI) and Services PMI for July will be released today. Also, U.S. New Home Sales data will be made public today.
On the earnings front, ServiceNow (NOW), International Business Machines (IBM), AT&T (T), Chipotle (CMG), Ford (F), General Dynamics (GD), and NextEra Energy (NEE) will release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.23%. At the same time, WTI crude oil futures trended higher, hovering near $77.35 per barrel as of the last check.
Elsewhere, European indices opened lower today as traders digested earnings reports from the European Union and the U.S. On the economic front, investors await German Consumer Confidence data for August and PMI reports from across the region.
Asia-Pacific Markets Closed Lower Today
Asia-Pacific markets ended the trading day lower as investors remained concerned about China’s economy.
Hong Kong’s Hang Seng index was down 0.91%. Also, China’s Shanghai Composite and Shenzhen Component indices declined by 0.46% and 1.32%, respectively. At the same time, Japan’s Nikkei and Topix indices both closed lower by 1.11% and 1.42%, respectively.
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