U.S. stock futures were down Wednesday evening as markets appeared to reverse course following two days of consecutive gains for the major indexes.
Shanghai assembly plant and reduced sales, but the electric-vehicle maker still beat analyst expectations. The company, whose market capitalization of about $770 billion comprises roughly 4% of the Nasdaq’s total market capitalization of $19.4 trillion, registered $2.3 billion in second-quarter profits, or $2.27 per share, which surpassed expectations for $1.9 billion.
The stock spiked in the immediate aftermath of its results before its gains leveled. Tesla was up about 1% in after-hours trading.
At 6:30 p.m. Eastern time, futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq were down 0.3%, 0.2%, and 0.3%, respectively.
The Nasdaq is now almost 12% above its 2022 low, which came in mid-June. The S&P and the Dow dipped to their lowest points this year around the same time, but haven’t rebounded as much since: the S&P is 8% above that low, while the Dow is up nearly 7% from its own mark.
But this week’s earnings-season rally has come amid a general backdrop of poor investor sentiment.
Bank of America
July Global Fund Manager Survey revealed “dire levels of investor pessimism,” Michael Hartnett and Myung-Jee Jung, investment strategists at the bank, wrote this week.
“Expectations for global growth & profits [are at] all-time lows, cash levels [are] highest since “9/11”, equity allocation lowest since Lehman,” they wrote, listing off key takeaways from the survey.
) were losing the most ground in after-hours trading Tuesday, down 8.6% and 7%, respectively. Carnival announced a public offering of $1 billion of shares of common stock, with
) conducting the underwriting. Meanwhile, United’s earnings of $1.43 per share missed expectations for $1.85 per share, and the airline also cut plans to grow capacity in 2023, citing higher fuel prices and operational issues.
), up 6.4%;
), up 4.1%; and
), which rose 4.1%, were all gaining Wednesday evening. Investors reacted favorably to
second-quarter earnings, which showed that the aluminum producer earned $549 million in its most recent quarter, compared with $309 million a year ago.
), which was down 1.9% in after-hours trading following the release of United’s results, report their earnings before the bell on Wednesday. Results from
Weekly jobless claims also go live Thursday at 8:30 a.m., with 20 economists surveyed by The Wall Street Journal expecting 240,000 claims, which would be 4,000 fewer than the week before.
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