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postUS stock futures traded mixed on Thursday, as hopes for a US-EU trade deal kept fresh records in sight and Wall Street assessed earnings from tech giants Alphabet (GOOG) and Tesla (TSLA).
Dow Jones Industrial Average futures (YM=F) dropped 0.4% amid a post-earnings slide in IBM (IBM), after the blue-chip index ended just shy of its first record close this year.
Meanwhile, contracts on the tech-heavy Nasdaq 100 (NQ=F) rose roughly 0.3%, while S&P 500 futures (ES=F) were little changed on the heels of another all-time closing high.
Alphabet beat Wall Street’s second-quarter earnings expectations and doubled down on its AI spending spree. The Google parent’s shares rose in premarket trading alongside other AI-linked stocks such as Nvidia (NVDA), helping buoy the tech-focused gauges.
Read more: Full earnings coverage in our live blog
But fellow “Magnificent Seven” stalwart Tesla’s stock sank after an earnings miss, a continued slump in European sales, and a warning from CEO Elon Musk that the EV maker faced “rough quarters” as President Trump’s budget bill kills off tax credits.
Earnings season continues on Thursday with results from Intel (INTC) and American Airlines (AAL).
Meanwhile, trade-deal hopes continued to run high after the US-Japan pact helped fuel more records for the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) on Wednesday.
The EU and US are closing in on an agreement that would impose a 15% tariff for most imports from Europe, instead of the 30% threatened, media reports said.
Read more: The latest on Trump’s tariffs
That rate is emerging as a potential new baseline for the “reciprocal” tariffs set to kick in on Aug. 1, going by Trump’s comments late Wednesday. Previously, the president had imposed a 10% baseline rate on countries as part of his sweeping April tariffs.
“We’ll have a straight, simple tariff of anywhere between 15% and 50%,” he said at an AI summit. “A couple of — we have 50 because we haven’t been getting along with those countries too well.”
On the economic front, investors get a flurry of fresh data to feed into expectations for interest rates as the July Federal Reserve meeting nears. Updates on weekly initial jobless claims, US manufacturing and services activity in July, and new home sales are on the docket.
LIVE 9 updates
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Jobless claims hit lowest level in three months
Amid a quiet week of economic data, investors were greeted with yet another sign that the US labor market isn’t flashing glaring alarm signals.
Data from the Department of Labor released Thursday morning showed 217,000 initial jobless claims were filed in the week ending July 19, down 4,000 from the week prior and the lowest number of weekly filings since the week of April 12. After surging in May, weekly filings have consistently declined throughout the start of the summer.
Meanwhile, 1.955 million continuing claims were filed, up about 4,000 from the week prior and hovering near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
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Tesla stock slides as Musk warns of a ‘few rough quarters’
Tesla’s (TSLA) stock is sinking in premarket as a warning from CEO Elon Musk rings in investors’ ears.
Shares fell over 6% after Tesla posted an earnings miss, setting the stage for a tough stretch ahead. The automaker faces the end of EV incentives brought in by President Trump, alongside potential delays to its autonomous vehicle rollout.
“We probably could have a few rough quarters,” Musk said, per Bloomberg.
Meanwhile, a report Thursday showed Tesla’s sales in Europe fell in June for the sixth straight month, falling 23%.
Tesla’s finance chief flagged other challenges on a conference call with analysts. Yahoo Finance’s Pras Subramanian reports:
Read more here.
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The AI trade hasn’t changed for Big Tech — and that’s working for them
Alphabet (GOOG, GOOGL) and Tesla (TSLA) kicked off Big Tech earnings on Wednesday afternoon, and Yahoo Finance’s Hamza Shaban recaps what investors learned in today’s Morning Brief:
Read more here.
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Good morning. Here’s what’s happening today.
Economic data: Initial jobless claims (week ending July 19) Chicago Fed national activity index (June); S&P Global US manufacturing PMI (July preliminary); S&P Global US services PMI (July preliminary); S&P global US composite PMI (July preliminary); New home sales (June)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump signals baseline hike in ‘reciprocal’ tariffs to 15%
The AI trade hasn’t changed for Big Tech — and that’s working for them
Trump to visit Fed HQ for refurb check as he battles with Powell
Keurig Dr Pepper beats estimates but coffee inflation lurks
Google beats on earnings, doubles down on AI spending spree
Tesla stock sinks after earnings miss, ‘rough’ patch warning
Chipotle plunges after company reports 2nd straight sales decline
Goldman’s trading desk touts cheap hedges against S&P 500 slide
Meme stock rally has investors feeling ‘invulnerable’
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Meme stock rally has investors feeling ‘invulnerable’
Retail investors with an appetite for risk are piling into speculative trades and creating a new roster of meme-stocks, helping power a broader rally in markets, Yahoo Finance’s Jake Conley reports:
Read more here.
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STMicro stock falls by most in a year after surprise loss
STMicroelectronics (STM) delivered a double whammy in its earnings on Thursday: A surprise Q2 loss from restructuring charges and a disappointing outlook for Q3.
US-listed stock in the European chipmaker slid over 10% in premarket trading, while its shares in Paris (STMPA.PA) fell to their lowest in a year at one point, down 13%.
Bloomberg reports:
Read more here.
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Trending tickers: Chipotle Mexican Grill, T-mobile and Wolfspeed
Here are some top stocks trending on Yahoo Finance in premarket trading:
Chipotle Mexican Grill (CMG) stock fell 10% before the bell on Thursday after reporting another quarter of negative sales growth.
The fast-casual restaurant chain posted results on Wednesday as it navigates an uncertain consumer environment and as its new leadership deals with the most challenging backdrop in years.
T-mobile (TMUS) stock rose 5% premarket on Thursday after beating analyst estimates on Wednesday. The telecom group’s CEO Mike Sievert told Yahoo Finance’s executive editor Brian Sozzi that the company’s steady value messaging is helping it to gain market share.
Wolfspeed (WOLF) shares rose 18% before the bell. The chipmaker’s stock reacted positively this week to the new US-Japan trade deal and has been up 13% over the last five days. The US-Japan trade deal boosts optimism for Wolfspeed as it supports Renesas’ EV chip production, raising hopes for more deals with automakers like Jaguar Land Rover.
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American Eagle stock soars after-hours in latest meme push
Stock in retail giant American Eagle Outfitters, Inc. (AEO) flew up over 25% in after-hours trades overnight Thursday. The individual share price went from $10.82 at close to a peak of $13.80 as of 10:57 p.m. EDT.
The jump in value can be attributed to the current meme stock phase that has pushed up value in companies such as Opendoor (OPEN), Krispy Kreme (DNUT), Kohl’s (KSS), and GoPro (GPRO) over the past few days.
Much of meme-stock mania can be attributed to retail investors making moves in stocks with ‘undervalued fundamentals’, and the rallying of groups around individual personalities. With this in mind, the release of an ad campaign starring actress Sydney Sweeney has been leapt upon by members of online communities on Reddit and X.
Though seen in other companies receiving the benefits of online attention, with Opendoor receiving a 140% increase in retail revenue in the past two weeks, it is unclear whether the increase in stock value will see a corresponding increase in revenue for American Eagle.
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Oil prices rise on trade deal positivity, stockpile reduction
Crude oil prices climbed late night Thursday, fueled by hopes for progress in US trade talks and a surprise plunge in American oil stockpiles, easing concerns about global economic slowdown.
Reuters reports:
Read more here.
