Share

Nasdaq snaps three-day winning streak as Big Tech weighs down index

Pro Picks: Watch all of Wednesday's big stock calls on CNBC
VIDEO9:5909:59
Pro Picks: Watch all of Wednesday's big stock calls on CNBC

The Nasdaq Composite and S&P 500 slid Wednesday, with both indexes snapping three-day winning streaks, as traders assessed disappointing earnings from tech giants Microsoft and Alphabet.

The Nasdaq dropped 2.04%, to close at 10,970.99. The S&P 500 lost 0.74%, ending at 3,830.60. The 30-stock Dow Jones Industrial Average gained 2.37 points, roughly flat for the day and ending at 31,839.11.

Stocks attempted a rally earlier in the day, with traders attempting to shake off the quarterly results from Microsoft and Alphabet. At one point, the Dow rallied more than 300 points as Visa buoyed the index on strong earnings.

CNBC

Shares of Google-parent Alphabet dropped 9.1% after the tech giant missed expectations on the top and bottom lines. Alphabet also reported a decline in YouTube ad revenue, which spurred investors to deliberate the outlook for other tech companies that rely on ad spending.

Meanwhile, Microsoft declined 7.7% after the tech giant reported weaker-than-expected cloud revenue in its latest quarterly results, despite beating earnings and revenue estimates. The company also issued current-quarter revenue guidance that fell short of expectations.

The swings in the major indexes reflect a "tug of war" between corporate America and the Federal Reserve that has left investors attempting to balance what companies are reporting and what that means for future interest rate hikes, said Keith Buchanan, portfolio manager at GLOBALT Investments. He said the first of the big tech reports had a particular impact as it is an industry that many investors are exposed to.

"The intraday action of the day is kind of a microcosm of what we've been feeling as investors over the past several weeks," Buchanan said. "The optimism is built almost entirely on a pessimistic outlook. The optimism of the Federal Reserve pivoting only occurs in a scenario where things deteriorate more quickly, from a macroeconomic standpoint."

"The volatility is here, and it's been here for a while, and I think it's probably here to stay," he added. "Not on a day-to-day, week-to-week, but on an intraday basis, just because of the position that investors are in now."

In other earnings news, Harley-Davidson shares rose 12.6% after the motorcycle manufacturer reported beating expectations before the bell. Boeing lost about 8.8% after the jet maker reported a quarterly loss and missed revenue expectations.

Lea la cobertura del mercado de hoy en español aquí.

Dow closes up, while S&P 500 and Nasdaq end winning streaks

The Dow ended narrowly in the positive, continuing its winning streak, while the S&P 500 and Nasdaq closed lower for the first time this week.

The Dow was up 2.37 points, or 0.01%. It's the composite's fourth day closing in the green.

The tech-heavy Nasdaq, weighed down by the first round of Big Tech earnings, was down 228.12 points, or 2%.

The S&P 500 shed 28.51 points, or 0.7%.

— Alex Harring

Morgan Stanley reiterates its overweight rating on Disney

Morgan Stanley sees potential upside of about 40% to Disney shares over the next two years, thanks to growth in its theme parks department and streaming profits that "will lift Disney adjusted EPS back above prior peak levels."

"We reiterate our OW rating as shares appear to already reflect some macro risk at the Parks and a depressed value for its streaming and broader media business (~1x sales)," Morgan Stanley analyst Benjamin Swinburne said in a note Wednesday. "Parks growth and fading streaming losses should help double adj. EPS from FY22 to FY25, supporting equity outperformance."

Disney shares were slightly higher on Wednesday.

— Tanaya Macheel

Bitcoin breaks 50-day moving average for second day

The price of bitcoin was trading above its 50-day moving average for a second day. That could mean an upside for the test of could-based resistance near $21,700, according to Katie Stockton, managing partner at managing Partner at Fairlead Strategies.

The relied rally has been fueled by short-term positive momentum, she said, with short-term over-bought conditions coming naturally from the minor breakout.

"In general, we caution against counter-trend exposure because bear market rallies are often fast-and-furious, making them difficult to time<' she said. "Should bitcoin see a subsequent breakout above cloud-based resistance, it would add to the rally's potential duration, making it more tradable."

— Alex Harring

Advance-decline numbers hold up despite market downturn

The market has given up its gains in afternoon trading, but under the surface, it's not exactly a full-fledged reversal.

Advancing stocks outnumber declining ones by a roughly 2-to-1 margin in the NYSE Composite, according to FactSet. In the S&P 500, the split is nearly 60-40 with advancers in the lead.

Even in the Nasdaq 100, a much more tech-centric index, advancers and decliners are roughly even.

— Jesse Pound

Dow turns red entering final hour

The Dow joined the S&P 500 and Nasdaq Composite in trading down.

It was down about 42 points, or 0.1%, heading into the final hour.

The Nasdaq and S&P 500 were down 2% and 0.8%, respectively.

Loading chart...

— Alex Harring

Real estate and utilities join sectors in the red

It wasn't a surprise that Communication Services (Alphabet and Meta) and Information Technology (F5, Microsoft, Seagate and Analog) led the stock market's Wednesday downdraft, respectively down 4.5% and 2.1%, following lousy Google and Microsoft results.

But then consumer discretionary started selling off (led by Chipotle, Amazon and Bath & Body Works), now down 0.7%.

Eventually joined by real estate (Tuesday's big winner and market leader as rates fell), lower by 0.2%, and utilities (ditto), off 0.1%.

— Scott Schnipper

Wolfe's 4 reasons for being underweight on tech

Wolfe Research sees short-term catalysts including the shift in U.K. leadership and fears of missing out on an upward rally that previously pushed up the Nasdaq 100 as having run their course. The firm is now underweight within the sector.

These are Wolfe's four reasons for being underweight:

  1. During the pandemic, the sector's capital expenditures saw major increases.
  2. Online advertisement spending will not be "recession proof."
  3. Upward pressure on long-term yields will hurt valuations.
  4. Analyst estimates do not reflect upcoming earnings downturns.

— Alex Harring

A number of S&P 500 stocks hit their 52-week highs

A slew of S&P 500 components hit their 52-week highs during Wednesday's session, including:

  • General Parts Company (GPC) trading at all-time high levels back to its IPO in 1948
  • O'Reilly Auto (ORLY) trading at all-time high levels back to its IPO in Apr, 1993
  • Campbell Soup Company (CPB) trading at levels not seen since Mar, 2021
  • Hershey (HSY) trading at all-time high levels back through our history to 1972
  • J.M. Smucker Company (SJM) trading at levels not seen since Aug, 2016
  • ConocoPhillips (COP) trading at all-time highs back to the merger between Conoco and Phillips Petroleum in 2002
  • Hess (HES) trading at all-time highs back to its merger with Cletrac and public listing on the NYSE in 1962
  • Amgen (AMGN) trading at levels not seen since Jan, 2021
  • Cigna (CI) trading at all-time high levels back to its IPO in 1972
  • Humana (HUM) trading at all-time high levels back to its IPO as Extendicare in 1968, the company was renamed Humana in 1974
  • Eli Lilly (LLY) trading at all-time high levels back to 1952 when the company offered its first public shares of stock. 
  • Merck & Co. (MRK) trading at all-time high levels back through our history to 1978
  • Vertex Pharma (VRTX) trading at all-time highs back to its IPO in July, 1991
  • Northrop Grumman (NOC) trading at all-time highs back to the merger between Northrop Aircraft and Grumman Aerospace in 1994.

— Yun Li, Christopher Hayes

Dow, Nasdaq slide

The Dow and Nasdaq slid as investors re-focused on the disappointing first batch of tech earnings.

Previously above 300, the Dow was trading about 123 points higher, which translates to 0.4%.

The Nasdaq was down 1.4% after at one point turning positive.

— Alex Harring

Stocks making the biggest moves midday

These are some of the companies making the biggest moves in midday trading:

  • Harley-Davidson — Shares of the motorcycle company climbed 13% after Harley reported quarterly earnings beat top- and bottom line estimates. The Wisconsin company said higher shipments and strong pricing helped its performance.
  • Rollins — The pest control services company jumped 10%. Rollins posted earnings of 22 cents per share, compared to FactSet estimates of 21 cents per share. Revenue came in at $729.7 million for the quarter. against analysts' $714.9 million estimate, according to FactSet.
  • Spotify — Shares of the streaming audio company fell more than 8% after Spotify reported a wider-than-expected Q3 loss. Spotify's gross margin declined year over year even as subscribers grew.

Check out more big movers here.

— Tanaya Macheel

S&P 500 turns negative

The S&P 500 moved to negative trading Wednesday.

It was down about 0.2%.

Loading chart...

— Alex Harring

Nasdaq stays down, Dow and S&P 500 up midway through trading

The Dow remained positive as the markets entered the second half of trading, continuing to be helped by Visa and other stocks performing better than expected. The index was up 250 points, or 0.8%.

The S&P 500 was up 0.3%. The tech=heavy Nasdaq, still feeling the pain of the first round of tech earnings, was down 0.5%.

— Alex Harring

Pivotal double-upgrades Netflix to buy from sell

Pivotal Research Group has changed its tune on Netflix, double-upgrading the stock to buy from sell.

"We clearly carried our SELL rating far too long and believe that the move higher in the shares post earnings is likely to continue," analyst Jeffrey Wlodarczak wrote in a note to clients.

Shares of Netflix jumped 13% on Oct. 19 after a surprisingly strong quarterly report. The stock has continued to rise and is now up another 11% since that day at roughly $303 per share.

Loading chart...

Pivotal now has Netflix gaining 15 million net new subscribers in 2023, which the note said is above consensus of 12.5 million.

"While competition is heating up NFLX still provides the most unique and powerful streaming experience globally with a reasonable path to accelerate subscriber growth over at least the next year," Wlodarczak wrote.

Along with the upgrade, Pivotal hiked its price target on Netflix to $375 per share from $200.

— Jesse Pound, Michael Bloom

U.S. dollar eases as economic data shows cooling economy, strategist says

Economic data signaling to observers that the Fed could slow interest rate hikes is also cooling the U.S. dollar's foreign exchange power, according to Quincy Krosby, chief global strategist for LPL Financial.

"The U.S. dollar's near parabolic rise against major currencies has eased as data releases, including manufacturing, housing, and even the seemingly stubborn labor market, suggest the economy is slowing in response to higher interest rates," Krosby said.

Krosby said currency traders expect a rate hike of 75 basis points at the early November meeting, but are "on alert" for signs of the Fed decreasing or pausing rates at subsequent meetings. She said a less aggressive Fed trajectory could weaken the dollar, which would in turn help improve the global economy.

The dollar index is down 1.1% Wednesday. Many multinational companies have reported headwinds, particularly on international revenues, due to the surging dollar.

Loading chart...

— Alex Harring

S&P 500 breaks above key technical level, despite disappointing tech news

The S&P 500 surged above its 50-day moving average, signaling the potential for further gains.

The 50-day moving average, at 3,859, is a key momentum indicator. It literally is the average of the last 50 closing prices. If the index closes above that level and holds, it would be viewed as a postiive for the market.

"I think breaking the 50-day likely triggers some momentum buying, but I think the bigger picture is the market is oversold coming into the quarter," said Keith Lerner, chief market strategist and co-chief investment officer at Truist. "We have fourth quarter seasonality, and there's a lot of investors that are underweight equities."

Lerner said he expects the S&P 500 could push toward 4,000 to 4,150 based on fundamentals.

"Investors are down a lot this year. If you're a money manager, and the market is moving, it's almost unacceptable not to participate," said Lerner.

The index opened lower Wednesday after disappointing earnings news from market heavy weights Microsoft and Alphabet. But it reversed losses and rose into positive territory after the Bank of Canada raised interest rates by a half point, instead of the three-quarter points expected by the market. Lerner said that gave investors hope that the Fed will slow down its rate hiking in the near future.

-- Patti Domm

Nasdaq moves closer to flatline, briefly turns green

The Nasdaq is trading closer to flat – and briefly turned positive – as investors further evaluated the tech sector coming out of a disappointing first round of earnings.

It had a short-lived stint trading up just before 11:45 a.m. It was last trading down around 0.2%.

The tech-heavy composite started the day down more than 1.5%. It was weighed down by Alphabet missing earnings expectations and Microsoft missing revenue guidance.

Loading chart...

— Alex Harring

Stocks rally on Canada's 'dovish pivot,' expectations rise that Fed will slow down

Stocks and bonds rallied after the Bank of Canada raised rates by 50 basis points Thursday, instead of the 75 basis points expected by many in the market.

"75 seemed to be in the books since Canada's CPI printed at 6.8% for September last week, but it seems they're more concerned about slowing growth," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

The Federal Reserve is expected to raise its benchmark fed funds rate by 75 basis points next week though the market is beginnning to price a better chance of a 50 basis point hike for its December meeting. A basis point equals 0.01 of a percentage point.

"What we've seen is a perceived dovish pivot out of Canada," said Keith Lerner, chief market strategist and co-chief investment officer at Truist. "The way the market is thinking about this is they're starting to see the end of the tightening cycle...The market is thinking there's an end game in sight."

Treasury yields fell, as the bond market rallied Wednesday. The 10-year yield fell to 4%, after cresting at 4.32% Friday. Many strategists believe the benchmark yield may have peaked in the near-term, a positive for stocks.

-- Patti Domm

Chubb shares rise following the company's earnings report

Shares of Chubb rose about 2% on Wednesday after the company reported strong performance in a catastrophe quarter.

Despite posting pre-tax catastrophe losses of $1.16 billion, including $975 million from Hurricane Ian, the commercial insurer reported several other strong performance metrics and said it's "firing on all cylinders" on its earnings call.

Loading chart...

Chubb's core operating earnings per share jumped 20% and beat consensus estimates by 55 cents per share. Core operating income increased 15% and the company posted record investment income.

— Tanaya Macheel, Contessa Brewer

Canada's central bank announces smaller-than-expected hike

The Bank of Canada surprised traders on Wednesday by raising its benchmark rate by half a percentage point, below expectations for a three-quarters of a point hike.

Yields for Canadian government debt were sharply lower for the session. The Canadian dollar gave up most of its gains for the day against the U.S. dollar.

"The Bank of Canada has shocked us with only a 50 bps rate hike to 3.75% instead of to 4% that [was] expected while continuing on with QT. There was no color in the statement as to why they unexpectedly downshifted to a 50 bps increase after going 75 bps in September and 100 bps in July," Peter Boockvar of Bleakley Advisory Group said in a note to clients.

The prevalence of adjustable rate mortgages in Canada may have been one reason why the central bank slowed its hikes, Boockvar said.

The Bank of Canada said in its statement that it expects to raise rates further in the future but that "the effects of recent policy rate increases by the Bank are becoming evident in interest-sensitive areas of the economy."

Jesse Pound

Dow, S&P 500 rally

The Dow and S&P 500 started upward ascents as investors shook off the first round of tech earnings.

The Dow was up 223 points, or 0.7%, after opening near the flatline.

Loading chart...

The S&P 500 was up 0.2% despite starting the day down.

Loading chart...

— Alex Harring

Bullishness rallies in latest Investors Intelligence survey after touching 6-year low

The latest weekly Investors Intelligence survey of financial newsletter editors shows bullishness rising to 36.9% from 31.3% a week ago and a 6-year low of 25% the week before that.

The bearish percentage moved down to 38.5% from 40.3% the prior week (and 44.1% two weeks ago — matching the June 2022 high), and outnumbered bulls for a sixth straight week.

All that signals "plenty of cash on the sidelines," according to II.

The improved stock market pushed down the number of advisors forecasting a correction to 24.6% from 28.4% last week.

The spread between bulls and bears narrowed to -1.6 points from -9.0 last week and -19.1 two weeks ago (which was the largest negative spread since 2009). The June 2022 spread was -17.6 and in March 2020 it was -11.6.

The wider the negative spread, the less risk investors find in the market, II says. Conversely, the wider the positive spread, the greater the risk. In the summer of 2021, for example, the positive spread between bulls and bears was 40.5-45.9. Anytime the positive spread rises above 30 signals "elevated risk," according to the II model.

— Scott Schnipper

New home sales comes in better than expected

New home sales fell 10.9% in September from the prior month to a seasonally adjusted annualized rate of 603,000 units, according to the Commerce Department. New home sales were expected to fall 13.4% to 593,000 units, according to consensus estimates from the Dow Jones.

— Sarah Min

Home improvement stocks are pricing in 'draconian outlook,' Bank of America says.

Home improvement stocks are preparing for tougher times ahead, according to Bank of America.

"Stocks appear to be pricing in a draconian outlook," wrote analyst Elizabeth Suzuki in a note to clients Wednesday. "We determine that the current valuation multiples of home improvement retailers HD, LOW, and FND are baking in a more severe 2023 home improvement demand environment than our base case, albeit to varying degrees of bearishness."

Suzuki expects spending to take a pause in 2023, flattening over 2022 and suffering most between October and March 2023 as consumer spending dips and mortgage rates pressure the housing market.

Looking ahead, she views Floor & Decor Holdings as most at risk among home improvement stocks given the stark drop in its price-to-earning ratio from an average of 40.9 times between 2017 and 2019 to 20.9 times next year's earnings.

Despite these headwinds, Suzuki maintained her buy ratings on the stocks. Shares of all three have plummeted more than 25% this year, with Floor & Decor down nearly 43%.

Suzuki's base case fails to account for a housing crisis similar to the one experienced between 2007 and 2009. Should one hit — and demand return to pre-pandemic levels — she expects a 25% year-over-year decline in retail sales for the industry.

Estimates for Lowe's and Home Depot next year have already baked in a downdraft in earnings coming in 20% and 6% below Bank of America's estimates, respectively.

— Samantha Subin

Nasdaq, S&P 500 down as trading begins

Two of the three major indexes opened down, marking a shift from the past three days of rallies.

The S&P 500 was trading down about 0.7%. The tech-heavy Nasdaq, weighed down by disappointing tech earnings, was down 1.6%.

The Dow was near flat as Visa's strong quarter boosted the index.

— Alex Harring

Goldman Sachs downgrades crypto bank Silvergate on deposit growth, interest rate sensitivity

Goldman Sachs downgraded Silvergate Bank on Wednesday to neutral from buy, after the company reported quarterly earnings that showed a drop-off in customer deposits. The crypto bank's shares fell about 2% in early morning trading.

Both Silvergate and Signature Bank, another company that primarily serves cryptocurrency businesses, saw a decline in deposits as well as transaction activity on their respective payments networks as crypto prices have remained depressed and volatility low in recent weeks.

"We believe greater uncertainty about the trajectory of deposit growth, combined with reduced interest rate sensitivity, primarily as a function of the company's hedging program, will likely prevent shares from outperforming," the firm's Will Nance said in a note. "We would look for a stabilization of SI's deposit base, or an increase in overall crypto activity levels and volatility, as this would reduce uncertainty around the balance sheet size."

— Tanaya Macheel

Morgan Stanley raises price target on GM but still sees downside

General Motors' big third-quarter earnings beat has prompted Morgan Stanley to hike its price target on the stock to $32 from $30.

The Detroit automaker's adjusted earnings per share was $2.25, compared to Refinitiv's estimate of $1.88. However, its record $41.89 billion in revenue came in slightly below expectations of $42.22 billion. GM also reiterated its full-year guidance.

"We see an opportunity for GM to remain 'in the game' for [electric vehicles] while slowing its roll on investment at a time when the prices of most EVs are well out of reach for GM's core consumer audience," analyst Adam Jonas wrote in a note Tuesday. "GM's ability to 'elongate' the useful life of its increasingly scarce and highly profitable [internal combustion engine] assets will play a key role in supporting GM share price and profitability medium term."

Morgan Stanley's price target implies more than 13% downside from Tuesday's close.

Loading chart...

— Michelle Fox

Bed Bath & Beyond moves down on leadership news

Bed Bath & Beyond shares dropped 6.4% in pre-market trading after the company announced its interim CEO would take the role permanently.

Sue Gove was named interim CEO this summer after the company's board pushed out his predecessor, Mark Tritton.

Gove took the helm as the company has looked to turn its business around going into the holiday season. Shares are down 63.7% this year and nearly 86% from the pandemic high.

Loading chart...

— Melissa Repko, Alex Harring

Stocks making the biggest moves before the bell: Boeing, Hilton, Visa and more

As corporate earnings season continued, companies reporting continued to impact stock performance.

Among them today:

  • Boeing: The plane maker traded up 1% in the premarket despite reporting a quarterly loss and revenue below expectations.
  • Hilton: Shares of the hotel company increased 2% after reporting better-than-expected quarterly earnings. The company also increased its full-year forecast, saying it continues to benefit from strong demand to travel coming out of the pandemic.
  • Visa: The financial services company was up 1.8% after beating profit and revenue expectations.
  • Mattel: Shares of the toy maker dropped 5.5% after it cut its full-year forecast and revenue came in below expectations.
  • Harley-Davidson: The company was up 2.5% following its report that it beat earnings estimates. The company attributed performance to an increase in shipments and better pricing.

See the full list here.

— Peter Schacknow, Alex Harring

Dow futures hover near flat

Dow futures traded near flat, turning slightly positive at points, as markets took a hit coming off the first round of Big Tech earnings.

Futures for the Dow were buoyed by Visa and other companies that beat expectations, coming as some have increased optimism for earnings season given already slashed expectations for many companies. Futures for the Nasdaq 100 were pushed down by disappointing Alphabet earnings and Microsoft guidance.

— Alex Harring

Boeing shares fall after airplane maker posts unexpected loss

Boeing shares fell about 1% after the aerospace giant posted a surprise quarterly loss along with disappointing quarterly revenue.

The company lost $6.18 per share, while analysts expected a profit of 7 cents per share. That loss includes charges in Boeing's defense unites. Boeing also posted revenue of $15.96 billion, well below a Refinitiv forecast of $17.76 billion.

Read more here.

— Leslie Josephs

Correction: Analysts expected a profit of 7 cents per share from Boeing. A previous version misstated the consensus estimate.

Mortgage applications decrease this week

Mortgage applications decreased 1.7% compared to the prior week, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey released Wednesday.

Mortgage rates continuing to rise for the 10th week in a row has depressed demand to its slowest pace since 1997, according to Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association. Market observers watch mortgage application rates as one indicator of the financial health of general consumers.

Meanwhile, the share of mortgage applications that includes refinancing increased to 28.8 percent from 28.3 percent the previous week. Refinancing increasing can be interpreted to signal growing challenges for consumers.

Read more here.

— Alex Harring

Kraft Heinz shares rise on earnings beat

Kraft Heinz jumped 2.6% in pre-market trading after the company announced its third-quarter earnings beat expectations before the bell.

Earnings per share came out to 63 cents, beating analyst consensus expectations of 56 cents.

A revenue of $6.51 billion also came in above expectations of $6.27 billion.

The company said the performance stemmed from improvements in its ability to manage supply and services amid volatility.

— Alex Harring

What analysts think after Microsoft's latest report

Wall Street analysts covering Microsoft maintained their buy ratings on the stock, but several noted that the tech giant's near-term prospects look a bit murkier.

Many analysts lowered their 12-month price targets on Microsoft after the company posted its latest numbers.

Piper Sandler's Brent Bracelin, who lowered his target to $265 from $275, said that, while he was encouraged by the company's "reiteration that Microsoft Cloud growth should remain above 20% on a constant currency basis this year ... Azure growth (ex-FX) is expected to moderate to 37% y/y from 42% this quarter and 46% last quarter, elevating near-term concerns on competitive pricing and workload optimization efforts that could curb consumption patterns heading into a recession."

CNBC Pro subscribers can read more analyst reaction to Microsoft's latest earnings report here.

— Carmen Reinicke

European markets fluctuate after hitting five-week high; Heineken down 8%

European markets were choppy on Wednesday, with corporate earnings season in full swing and a European Central Bank meeting ahead.

The pan-European Stoxx 600 was up 0.2% by mid-morning, having recouped earlier losses of around 0.4%. Construction and material stocks added 1.4% while food and beverage stocks dropped 1.4%.

Corporate earnings are a key driver of share price movement in Europe. Deutsche Bank, Barclays, Standard Chartered, Mercedes Benz, Heineken and Reckitt Benckiser all reported before the bell on Wednesday.

- Elliot Smith

Microsoft shares decline after earnings report

Shares of Microsoft declined 6.7% after the tech giant reported weaker-than-expected cloud revenue in its most recent quarter, and issued quarterly revenue guidance that fell short of expectations. The company otherwise topped earnings and revenue expectations.

The company's Intelligent Cloud business segment generated $20.33 billion in revenue in its most recent quarter, slightly missing the $20.36 billion forecasted by analysts, according to consensus estimates from StreetAccount.

The stock is down roughly 25% this year.

Loading chart...

— Sarah Min

Alphabet shares fall after earnings results

Shares of Google-parent Alphabet dropped 6.5% in extended trading after the online search giant reported lackluster third-quarter earnings results.

Alphabet missed expectations on the top and bottom lines, and reported a decline in YouTube ad revenue, signaling trouble ahead for tech companies reporting earnings this week that also rely on ad spending.

Other mega-cap tech stocks declined following the report. Shares of Meta Platforms fell 4.1% in after hours trading, while Amazon slipped 4.6%. Apple dropped 0.7%.

Loading chart...

— Sarah Min

Stock futures open lower

U.S. stock futures fell on Tuesday night after disappointing third-quarter results from Alphabet signaled a foreboding start to Big Tech earnings this week.

Dow Jones Industrial Average futures fell by 93 points, or 0.29%. S&P 500 and Nasdaq 100 futures declined 0.79% and 1.65%, respectively.

— Sarah Min