On July 22, 2024, traders worked on the trading floor of the New York Stock Exchange (NYSE).
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This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
waiting game
Wall Street closed just below break-even points ahead of the tech giants' earnings reports. this S&P 500 Index Shares fell 0.16%, their best performance since early June. this Nasdaq Index Down 0.06% Dow Jones Industrial Average down 0.14%. 10-Year Treasury Bond Yield Ministry of Finance Not much has changed, but US oil prices fell to them lowest level in six weeks. Nasdaq futures fall After Alphabet and Tesla released their earnings reports.
Tesla Motors revenue declines
Teslaof Second quarter profit fell short of expectations Auto sales fell for the second consecutive quarter. it is Adjusted operating profit margin shrank The company's vehicle sales fell to their lowest in three years as spending increased on artificial intelligence infrastructure for self-driving cars and price cuts in response to falling sales. CEO Musk said Tesla will launch robotaxis on October 10, two months later than originally planned. Musk also posted a poll on X asking if Tesla should invest $5 billion in his latest startup, xAI. Tesla shares fell nearly 8% in after-hours trading.
YouTube ad misses
letterGoogle’s parent company, Second-quarter results announced were largely in line with expectationsBut YouTube's ad revenue has been disappointing. Driven by search and cloud computing, overall revenue increased by 14% year-on-year, quarterly revenue exceeded US$10 billion for the first time, and operating profit exceeded US$1 billion for the first time. YouTube's ad revenue fell short of expectations due to increased competition from platforms like TikTok. Chief Financial Officer Ruth Porat said the company is working on Waymo secures new $5 billion multi-year investment. Alphabet shares fell 2% in after-hours trading.
gm skid
General Motors' Exceeded second-quarter profit expectations But shares fell 6% as the company restructures its troubled self-driving car and China operations. GM also said Slow down all-electric car plans. Analysts have expressed concern that GM's profits may have peaked. Morgan Stanley's Adam Jonas warned that historical trends suggest the current positive performance may not be sustainable. Tom Narayan of RBC Capital Markets highlighted that GM expects second-half profit to be $2.5 billion lower than in the first half.
Asia declines, electric vehicle manufacturers decline
Asia-Pacific markets fell after disappointing earnings from Alphabet and Tesla. Hong Kong's Hang Seng Index fell 0.62%, of which Chinese electric vehicle manufacturer. Hong Kong listed stocks Xpeng Motors and Nioh Each fell by more than 5%. Mainland China's CSI 300 index fell 0.6%. Japan exports heavy Nikkei 225 Index Although business activity returned to growth, it still fell 1%. Korean Cospi and Australian S&P/ASX 200 Index fell while Taiwan's markets were closed due to a typhoon.
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bottom line
Despite former President Donald Trump's growing popularity among the public Cryptocurrency Enthusiast and BillionaireIt cannot be ignored that the Biden administration has allowed investors to trade Bitcoin and Ethereum through a growing number of exchange-traded funds.
ether ETFs officially begin trading in the U.S. on Tuesday, marking an important milestone for cryptocurrencies. The overall response was muted compared to the debut. Bitcoin Net inflows into ETFs exceeded $16 billion earlier this year.
Galaxy Digital CEO Mike Novogratz said in an interview with “Squawk Box”: “We believe that within the first six months, the amount of funds flowing into the Ethereum ETF will account for about 20% of the Bitcoin (ETF) funds. Despite this, , he said this is a significant development for cryptocurrencies.
Samara Cohen, chief information officer for ETF and index investing at BlackRock, highlighted the technical differences between the two cryptocurrencies. “Bitcoin has received widespread attention and is known as digital gold“People may need more time to understand the applications of Ethereum,” Cohen said in an interview with CNBC’s “Squawk on the Street.”
“While Bitcoin is indeed known for its scarcity, with its limited supply of 21 million, Ethereum is a completely different use case. Ethereum is known for its utility; it is a programmable blockchain designed to Let developers build decentralized applications on the blockchain ecosystem.
“For people like us who are really interested in what the next phase of the market looks like and the possibilities of deploying new technologies to create innovative use cases and applications, this is a very important space in Ethereum to watch. .
Ethereum may be one of the future, but investors are also eyeing corporate earnings that are off to a strong start. FactSet data shows that about 20% of S&P 500 companies reported second-quarter results, and 80% of them beat expectations.
Analysts at Wolff Research expect earnings from the so-called Big Seven to “Inspiring “meaningful uptrends”. “We believe a batch of better-than-expected reports could halt the current sell-off and spark a strong rebound,” Wolfe Research said.
Well, a “strong rebound” may still be some way off, because both Tesla and letter Data released after the close was disappointing. You can read more Stocks with the biggest gains after hours trade here
— CNBC's Jesse Pound, Tanaya Macheel, Jennifer Elias, Lora Kolodny, Samantha Subin, Alex Harring, Fred Imbert, Spencer Kimball, Sheila Jiang, Weizhen Tan and Lim Hui Jie contributed to this report.