Here are 5 vital points capitalists require to recognize to begin the trading day:
1. Huge slump
All the significant indexes saw losses Wednesday. In the trading session, the S&P 500 slid 2.31% to close at 5,427.13. The Nasdaq Composite also slid 3.64%, closing out at 17,342.41. Both indexes posted their worst session since 2022. The indexes were bogged down by earnings results from Google’s parent company Alphabet and Tesla. Meanwhile, the Dow Jones Industrial Average also moved lower, falling 1.25% to close at 39,853.87. With YouTube advertising revenue missing estimates, Alphabet plunged 5% to see its biggest one-day drop since Jan. 31, when it moved 7.5% lower. This is despite posting an earnings and revenue beat. Tesla posted results that missed earnings expectations and saw a 7% year-over-year drop in auto revenue. That sent the shares down 12.3%, marking its worst day since 2020. Follow live market updates.
2. Decelerating
2024 Jeep Wagoneer S EV
Jeep
Looks like earnings results for automakers Stellantis and Ford Motor didn’t come in clutch. Stellantis reported a first-half net profit of 5.6 billion euros ($6.07 billion). That’s a 48% drop compared with the same period last year. Stellantis â owner of names like Jeep, Dodge, Fiat, Chrysler and Peugeot â also posted adjusted operating income of 8.5 billion euros for the first six months of 2024, a decrease from 5.7 billion euros a year ago. The company cited reduced volumes, temporary production gaps and lower market share in North America as the reason. Though revenue was a beat, Ford’s second-quarter earnings missed Wall Street’s expectations because of warranty costs. It posted adjusted earnings of 47 cents per share compared with the 68 cents expected by analysts polled by LSEG. The automaker also maintained its guidance for 2024, disappointing investors hoping for a hike.
3. Moving aside
U.S. President Joe Biden addresses the nation from the Oval Office of the White House in Washington, Wednesday, July 24, 2024, about his decision to drop his Democratic presidential reelection bid.Â
Evan Vucci | Via Reuters
4. Changing course
A Southwest Boeing 737 is at Phoenix Sky Harbor International Airport in Arizona, USA, on July 2, 2024.Â
Robert Smith | Nurphoto | Getty Images
5. Box office joy
In Disney and Pixar’s “Inside Out 2,” Riley’s Sense of Self is made up of all of her beliefs, each of which can be heard with the pluck of a string. Sadness (voice of Phyllis Smith) and Joy (voice of Amy Poehler) deliver key memories to this formative land.
Disney | Pixar
Disney has officially reclaimed the No. 1 spot at the box office. “Inside Out 2” earned more than $1.46 billion in global ticket sales on Tuesday, giving it the title of highest-grossing animated feature of all time, dethroning Disney’s “Frozen II,” which earned the title back in 2020. “Inside Out 2” is expected to continue to grow in sales given that it has yet to premiere in Japan. In 2015, that country contributed almost $33 million to the film’s predecessor “Inside Out,” which earned a global total of $850.5 million. The record for “Inside Out 2” comes as Pixar has struggled to gain traction since Covid-19.
â CNBC’s Lisa Kailai Han, Hakyung Kim, Sam Meredith, Michael Wayland, Dan Mangan, Rebecca Picciotto, Leslie Josephs and Sarah Whitten contributed to this report.
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