The US stock market is showing mixed performance on July 23, 2024, as investors eagerly await earnings reports from major tech companies, particularly Tesla and Alphabet, due after market close. The Dow Jones Industrial Average rose 0.15% to 40,474.78, while the S&P 500 gained 0.22% to 5,576.55, and the Nasdaq 100 index added a modest 0.01% to 19,828.48.General Motors (GM) reported strong second-quarter results, beating Wall Street expectations. The company’s net income rose 14% to $2.9 billion, with adjusted earnings per share of $3.06, surpassing the average estimate of $2.75. GM also raised its annual profit forecast for the second time this year, projecting adjusted earnings per share of $9.50 to $10.50 and adjusted automotive free cash flow of $9.5-$11.5 billion. Despite these positive results, GM’s shares experienced a significant drop, falling over 6%.Tesla’s upcoming earnings report is highly anticipated, with analysts expecting challenges in margins due to increased competition, particularly from Chinese electric vehicle producers, and investments in AI and robotaxi technology. Wall Street expects Tesla to report earnings per share of 62 cents and revenue of $24.77 billion. Despite these challenges, Tesla’s stock has shown resilience, recovering over $386 million in value over the past 11 weeks, largely due to CEO Elon Musk’s emphasis on the company’s potential in AI and autonomy technology.The broader market sentiment remains cautious, with futures on the S&P 500 and Nasdaq Composite showing slight declines of 0.12% and 0.34% respectively. Individual stocks showed mixed performances, with UPS shares falling 12% after reporting a decline in revenue and earnings, while MSCI shares surged 12% after beating earnings expectations.
Key points
- General Motors reported strong Q2 results, beating expectations and raising its annual forecast.
- Tesla’s upcoming earnings report is expected to show margin pressure due to increased competition and investments in AI and robotaxi technology.
- The US stock market remains near equilibrium as investors await major tech earnings reports.
Contradictions👾While General Motors reported strong Q2 results and raised its forecast, its stock price fell over 6%, indicating a disconnect between financial performance and investor sentiment.
