U.S. stock index futures pointed Tuesday to an S&P 500 decline from a record set in the previous session as tech giant Alphabet shares struggled on disappointing earnings.
S&P 500 futures pointed to a 0.2% slip at the open. Dow Jones Industrial Average and Nasdaq 100 futures also indicated slight pullbacks.
— RECOMMENDED —
Did you know that many Americans are not paying taxes on Social Security?
With just one move, you can do the same.
All this critical information is compiled in a brand new, FREE book.
The declines were led by a 1.6% slide in Google-parent Alphabet shares, which fell after the company posted earnings that missed analyst expectations. Alphabet reported a profit of $10.12 per share. Analysts polled by Refinitiv expected earnings per share of $12.42.
Guggenheim analyst Michael Morris pointed to rising costs as a source of weakness for the search-engine giant. “Higher personnel spending, particularly for R&D and marketing, was the primary cost driver and we expect investment to continue into 4Q,” he said in a in a note.
“While we maintain confidence in Alphabet’s leadership positions (talent, technology and financial resources), we expect bearish concerns toward spending to weigh on near-term sentiment,” Morris added.
Other companies reporting earnings included Merck and Pfizer. Merck’s earnings beat expectations, boosted by immunotherapy drug Keytruda. Pfizer’s profit also topped analyst estimates. Both stocks were up around 3% in the premarket.
Tuesday’s moves come a day after the S&P 500 posted an all-time high on Monday. Better-than-expected earnings, along with improvements on the U.S.-China trade front, pushed the broad index above its previous record set in July. The S&P 500′s record high extended the second-largest ever bull market to 3,885 days, according to data from Bespoke Investment Group.
But while the outlook on U.S.-China trade talks has improved, the conflict has yet to be resolved. The U.S. said Monday evening that it is considering extending certain tariff exclusions on $34 billion of imports from China.
Source: cnbc.com | Original Link