On Wednesday, US equity futures experienced a decline, primarily influenced by the recent quarterly earnings reports from major technology companies, including Alphabet and Tesla. The Dow Jones Industrial Average futures slipped by 0.4%, while the S&P 500 futures saw a 0.7% decrease, and the Nasdaq futures fell by 1.1%.
Alphabet, the parent company of Google, reported their second quarter earnings, which surpassed analyst expectations in some areas but fell short in others, particularly regarding YouTube advertising revenue. This shortfall raised concerns over the platform's ability to sustain its advertising revenue amidst growing competition and changing consumer behaviors.
Tesla, on the other hand, reported adjusted earnings that did not meet analysts' estimates, causing additional trepidation in the market concerning the future performance of electric vehicle manufacturers. In the broader market, oil prices also took a hit, reflecting signs of weaker demand in the US.
Notably, the global benchmark for crude, North Sea Brent, rose by 1.1%, reaching $81.92 per barrel, while US West Texas Intermediate crude gained 1.4%, now priced at $78.01 per barrel. These fluctuations came in the wake of recent industry data indicating a significant decrease in US crude stockpiles, which fell by 3.9 million barrels last week, a development reported by various media outlets.
Looking ahead, investors are eagerly awaiting the release of the flash Composite Purchasing Managers' Index for July, which is scheduled for 9:45 am ET. Additionally, new home sales figures, set to be disclosed at 10 am ET, are projected to show an increase to an annual rate of 639,000 in June, up from 619,000 in May, according to estimates assembled by Bloomberg.
The performance of these economic indicators is anticipated to provide crucial insights into the ongoing economic landscape, influencing market movement further..