A trader works on the floor of the New York Stock Exchange (NYSE) on October 7, 2022.
Brendan McDermid | Portal
U.S. stock futures fell Tuesday night after Alphabet’s disappointing third-quarter results marked a foreboding start to Big Tech’s gains this week.
Dow Jones Industrial Average futures fell 75 points, or 0.24%. S&P 500 and Nasdaq 100 futures were down 0.96% and 2.04%, respectively.
Shares of Google parent Alphabet fell more than 6% in extended trading. The online search giant missed expectations for revenue and earnings. Alphabet also reported a drop in YouTube ad revenue, prompting investors to examine the prospects for other tech companies that rely on ad spending.
“I think we need to take an overall perspective and realize that nobody in this market is really immune, there’s a slowdown in digital ad spend,” Sand Hill Global Advisors’ Brenda Vingiello said on Tuesday on CNBC’s Closing Bell : Overtime”.
Other mega-cap tech stocks fell in after-hours trading on the report. Meta Platforms shares fell 4.1% and Amazon slipped 2%.
Meanwhile, Microsoft slipped about 3% after the tech giant reported weaker-than-expected cloud revenue in its most recent quarterly results, despite beating earnings and revenue estimates.
During Tuesday’s regular session, the Dow Jones Industrial Average rose 337 points, or about 1.1%. The S&P 500 rose 1.6%, while the Nasdaq Composite gained 2.2%. These gains against a backdrop of a fall in bond yields helped the major averages continue their rally for the third straight day.
Traders are expecting earnings from Boeing and Kraft Heinz Tuesday before the bell, as well as more big-tech earnings from Meta after the bell.
They also pay attention to the latest economic data on weekly mortgage applications, wholesale inventories and new home sales.