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Stock market today: S&P 500 notches 4th consecutive record as Google earnings fuel AI hopes
US stocks were mixed on Thursday, with the S&P 500 (^GSPC) notching its fourth record close in a row as tech earnings from Alphabet (GOOG) pointed to AI as a key growth catalyst. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2% to also close at a fresh record, while the S&P 500 ended up just 0.1% higher. The Dow Jones Industrial Average (^DJI) dropped 0.6% amid a post-earnings slide in IBM (IBM) shares. Alphabet beat Wall Street's second quarter earnings expectations and doubled down on its AI spending spree. The Google parent's shares rose 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 (TSLA) 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. Trade deal hopes continued to run high after the US-Japan pact helped fuel more records for the S&P 500 and Nasdaq Composite 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. Stocks closed mixed, but S&P 500 ekes out 4th consecutive record close, Nasdaq notches fresh high Stocks closed mixed on Thursday but the S&P 500 (^GSPC) managed to close just above the flatline to close at its 4th record in a row for the week, over optimism that AI is paying off for Big Tech players like Alphabet (GOOG). The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record. As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products. Meanwhile Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker. Fed gives media tour ahead of Trump's visit to central bank headquarters Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation. Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET. The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates. Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors. Apple's iOS 26 brings the most significant change to your iPhone in years Yahoo Finance's Dan Howley reports: Read more here. Southwest stock falls 11% after airline cuts profit forecast Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares. Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. Read more about the latest earnings updates here. American Airlines stock tumbles as carrier cites 'tough' July for domestic travel American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter. "July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning. The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year. "Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said Read more here. It sounds like Trump now has a new minimum tariff rate: 15% Yahoo Finance's Ben Werschkul reports: Read more here. Stock watch: TKO Group + Netflix on Hulk Hogan news Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news. I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call. I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports. Howley writes: Read more about Intel's upcoming earnings report here. Wall Street bullish on Alphabet as Search growth stays steady amid AI disruption fears Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine. "Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210. Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users. RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast." Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses. Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI. Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it." Fed gets new legal headache with lawsuit seeking to make FOMC rate meetings public The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Stocks trade mixed at the open US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data. The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year. The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%. IBM stock slides after software sales disappoint International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter. IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates. Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion. Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. Read more here from Reuters. 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. 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. 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. 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' 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. 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 ( fell to their lowest in a year at one point, down 13%. Bloomberg reports: Read more here. 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. Stocks closed mixed, but S&P 500 ekes out 4th consecutive record close, Nasdaq notches fresh high Stocks closed mixed on Thursday but the S&P 500 (^GSPC) managed to close just above the flatline to close at its 4th record in a row for the week, over optimism that AI is paying off for Big Tech players like Alphabet (GOOG). The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record. As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products. Meanwhile Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker. Stocks closed mixed on Thursday but the S&P 500 (^GSPC) managed to close just above the flatline to close at its 4th record in a row for the week, over optimism that AI is paying off for Big Tech players like Alphabet (GOOG). The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record. As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products. Meanwhile Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker. Fed gives media tour ahead of Trump's visit to central bank headquarters Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation. Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET. The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates. Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors. Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation. Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET. The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates. Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors. Apple's iOS 26 brings the most significant change to your iPhone in years Yahoo Finance's Dan Howley reports: Read more here. Yahoo Finance's Dan Howley reports: Read more here. Southwest stock falls 11% after airline cuts profit forecast Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares. Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. Read more about the latest earnings updates here. Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares. Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. Read more about the latest earnings updates here. American Airlines stock tumbles as carrier cites 'tough' July for domestic travel American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter. "July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning. The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year. "Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said Read more here. American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter. "July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning. The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year. "Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said Read more here. It sounds like Trump now has a new minimum tariff rate: 15% Yahoo Finance's Ben Werschkul reports: Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. Stock watch: TKO Group + Netflix on Hulk Hogan news Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news. I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call. I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news. Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news. I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call. I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports. Howley writes: Read more about Intel's upcoming earnings report here. Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports. Howley writes: Read more about Intel's upcoming earnings report here. Wall Street bullish on Alphabet as Search growth stays steady amid AI disruption fears Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine. "Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210. Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users. RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast." Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses. Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI. Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it." Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine. "Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210. Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users. RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast." Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses. Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI. Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it." Fed gets new legal headache with lawsuit seeking to make FOMC rate meetings public The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Stocks trade mixed at the open US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data. The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year. The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%. US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data. The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year. The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%. IBM stock slides after software sales disappoint International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter. IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates. Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion. Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. Read more here from Reuters. International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter. IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates. Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion. Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. Read more here from Reuters. 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. 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. 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. 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. 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. 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. 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' 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' 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. 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. 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 ( fell to their lowest in a year at one point, down 13%. Bloomberg reports: Read more here. 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 ( fell to their lowest in a year at one point, down 13%. Bloomberg reports: Read more here. 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. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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S&P/TSX composite closes lower on Thursday, U.S. markets mixed
TORONTO — Losses in basic materials and consumer cyclicals helped drive Canada's main stock index to finish lower on Thursday, while U.S. markets were mixed. The S&P/TSX composite index was down 44.15 points at 27,372.26. In New York, the Dow Jones industrial average was down 316.38 points at 44,693.91. The S&P 500 index was up 4.44 points at 6,363.35, while the Nasdaq composite was up 37.94 points at 21,057.96. The Canadian dollar traded for 73.37 cents US compared with 73.48 cents US on Wednesday. The September crude oil contract was up 78 cents US at US$66.03 per barrel. The August gold contract was down US$24.10 at US$3,373.50 an ounce. This report by The Canadian Press was first published July 24, 2025. Companies in this story: (TSX:GSPTSE, TSX:CADUSD) The Canadian Press Sign in to access your portfolio
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Earnings live: Intel to cut 15% of workforce, Tesla stock falls after earnings miss
Second quarter earnings season is in full swing, and the results have been largely positive so far, with more positive surprises than negative ones. Companies had a lower bar to clear coming into the quarter, as analysts tempered their expectations amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy. This week, investors will get a glimpse of how corporate leaders are navigating these challenges, with 112 S&P 500 companies reporting results, including GM (GM), Coca-Cola (KO), Alphabet (GOOGL, GOOG), and Tesla (TSLA). Data from FactSet published Friday showed that with 12% of the index having reported results, analysts now expect S&P 500 companies to report a 5.6% jump in earnings per share during the second quarter. Heading into the quarter, analysts expected S&P 500 earnings to rise 5% in Q2, which would mark the slowest pace of earnings growth since the fourth quarter of 2023. Here are the latest updates from corporate America. Intel stock rises on Q2 revenue beat, plans to cut 15% of workforce Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Southwest CFO says decision to lower guidance by $1 billion was 'macro-driven' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Blackstone assets under management surge, COO says dealmaking pause 'is behind us' Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Alphabet in 'AI (beast) mode': 5 takeaways from Google's earnings call Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Uptick in coal shipments boosts Union Pacific earnings Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. American Airlines restores 2025 forecast, flags economic worries for keeping it broad American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. Honeywell beats on earnings, raises 2025 forecasts on sustained demand for aerospace parts, services Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Keurig Dr. Pepper earnings beat estimates as energy drinks shine, but coffee inflation lurks Yahoo Finance's Brian Sozzi reports: Read more here. Tesla stock takes a leg down during earnings call Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Chart: Chipotle foot traffic declines for second straight quarter Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Southwest misses profit expectations as weak domestic demand erodes fares Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Wall Street looks to Google's earnings call for details on higher-than-expected capex number Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Mattel stock falls after the toymaker posts steeper sales decline than expected Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Chipotle plunges after company reports second-straight sales decline, cuts guidance Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. IBM results beat estimates on AI mainframe refresh, consulting revival Reuters reports: Read more here. T-Mobile dials up a big earnings beat, stock jumps T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. ServiceNow jumps after big earnings beat ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. Tesla misses on Q2 earnings, but says 'more affordable' model planned for 2025 production Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Google beats on Q2 earnings but increased capex spending sends stock lower Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Intel stock rises on Q2 revenue beat, plans to cut 15% of workforce Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Southwest CFO says decision to lower guidance by $1 billion was 'macro-driven' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Blackstone assets under management surge, COO says dealmaking pause 'is behind us' Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Alphabet in 'AI (beast) mode': 5 takeaways from Google's earnings call Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Uptick in coal shipments boosts Union Pacific earnings Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. American Airlines restores 2025 forecast, flags economic worries for keeping it broad American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. Honeywell beats on earnings, raises 2025 forecasts on sustained demand for aerospace parts, services Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Keurig Dr. Pepper earnings beat estimates as energy drinks shine, but coffee inflation lurks Yahoo Finance's Brian Sozzi reports: Read more here. Yahoo Finance's Brian Sozzi reports: Read more here. Tesla stock takes a leg down during earnings call Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Chart: Chipotle foot traffic declines for second straight quarter Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Southwest misses profit expectations as weak domestic demand erodes fares Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Wall Street looks to Google's earnings call for details on higher-than-expected capex number Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Mattel stock falls after the toymaker posts steeper sales decline than expected Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Chipotle plunges after company reports second-straight sales decline, cuts guidance Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. IBM results beat estimates on AI mainframe refresh, consulting revival Reuters reports: Read more here. Reuters reports: Read more here. T-Mobile dials up a big earnings beat, stock jumps T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. ServiceNow jumps after big earnings beat ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. Tesla misses on Q2 earnings, but says 'more affordable' model planned for 2025 production Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Google beats on Q2 earnings but increased capex spending sends stock lower Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
