CNBC Daily Open: Nasdaq futures fall as Alphabet, Tesla earnings disappoint
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here .
Waiting game
Wall Street closed slightly below the break-even mark ahead of earnings from technology megacaps. The S&P 500 slipped 0.16% a day after its best performance since early June. The Nasdaq Composite slipped 0.06% and the Dow Jones Industrial Average dipped 0.14%. The yield on the 10-year Treasury was little changed, while U.S. oil prices fell to their lowest levels in six weeks. Nasdaq futures fell after Alphabet and Tesla reported earnings.
Tesla auto revenue drops
Tesla's second-quarter earnings fell short of expectations as automotive sales declined for the second consecutive quarter. Despite beating revenue estimates, the company reported a 7% decrease in automotive sales, partially offset by $890 million in regulatory credits. Following the earnings report, Tesla's stock dropped nearly 8% in extended trading. This comes after a challenging first half of the year for Tesla, which included layoffs and lower deliveries compared to the previous year.
Youtube ad miss
Alphabet, Google's parent company, reported second-quarter results largely in line with expectations, but YouTube advertising revenue disappointed. Overall revenue grew 14% year-over-year, driven by search and cloud, which surpassed $10 billion in quarterly revenues and $1 billion in operating profit for the first time. YouTube's ad revenue fell short of estimates amid increased competition from platforms like TikTok. CFO Ruth Porat said the company is committing a new $5 billion multiyear investment in Waymo. Alphabet