November 30, 2022

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Stock futures drop after Alphabet reports profit loss

Stock futures drop after Alphabet reports profit loss

US stock futures fell Tuesday night after disappointing third-quarter results from Alphabet marked a harbinger of earnings for major tech companies this week.

Dow Jones Industrial Average futures were down 75 points, or 0.24%. S&P 500 and Nasdaq 100 futures are down 0.96% and 2.04%, respectively.

Shares of Google subsidiary Alphabet are down more than 6% in the extended trading period. Internet search giant Missed expectations on the final result. Alphabet also reported a drop in YouTube ad revenue, which prompted investors to discuss the prospects for other tech companies that rely on ad spend.

“I think we have to take a big picture perspective and realize that nobody is really immune in this market, there’s a slowdown in spending,” Sand Hill Global Advisors Brenda Vengelo said Tuesday on CNBC’s “Closing Bell: Overtime.” on digital advertising.

Shares of other big tech companies fell in after-hours trading on the back of the report. Meta Platforms shares are down 4.1% and Amazon shares are down 2%.

Meanwhile, Microsoft stock fell about 3% after that The tech giant reports weaker-than-expected cloud revenue In its latest quarterly results, though, it beat earnings and revenue estimates.

During the regular session on Tuesday, the Dow Jones Industrial Average advanced 337 points, or about 1.1%. The S&P 500 rose 1.6%, while the Nasdaq Composite jumped 2.2%. These gains, on the back of lower bond yields, helped the major averages extend their rally for the third consecutive day.

Traders expect quarterly earnings results from Boeing and Kraft Heinz Tuesday before the bell, as well as more Big Tech earnings from Meta after the bell.

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They also monitor the latest economic data on weekly mortgage applications, wholesale inventories and new home sales.