Stock Market Futures Gain Ahead Of Key Inflation Data
U.S. stock futures are gaining early Wednesday morning. As a whole, this could be contributed to big tech earnings getting underway on Tuesday, and key inflation data from the Fed on Wednesday. Investors will get earnings data from more notable names in the stock on Wednesday from companies like Meta Platforms (NASDAQ: META), Shopify (NYSE: SHOP), Spotfiy Technologies (NYSE: SPOT), and others.
The Federal Reserve kicked off a two-day meeting this week Tuesday. The Wall Street consensus estimates is the Fed will increase interest rates by 75 basis points. That announcement will take place on Wednesday. What’s more, the next Fed meeting isn’t until September. This means Fed Chair Jerome Powell’s news conference on Wednesday will be the main focus of the stock market today.
The announcement is set to take place, Wednesday afternoon at 2 p.m EST. Investors await to hear what Fed Chair Powell signals about September’s Fed meeting. It’s no surprise that investors may feel like headline inflation has peaked. This is evident in the drop in gas prices, though consumer price pressure is still high. With that, as of 5:52 am ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.46%, 0.92%, and 1.49% respectively.
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Alphabet (GOOGL) Misses On Earnings & Revenue For The Second Quarter
On Tuesday afternoon, Alphabet (NASDAQ: GOOGL) kicked off big tech earnings by reporting its second quarter fiscal earnings report. In it, the company fell short of analysts’ expectations on earnings and revenue. In detail, Google posted earnings of $1.21 per share on revenue of $69.7 billion. Compared with, the consensus earnings estimate of $1.27 per share on revenue of $70.8 billion. As a result, Alphabet missed on earnings estimates.
However, the company did beat estimates on ad revenue. Specifically, ad revenue was reported to come in at $56.29 billion for the second quarter. This beats the $56.14 billion consensus estimates. However, Google Services’ revenue fell short of estimates at $62.84 billion, versus estimates of $63.34 billion. Shares of GOOGL stock gained 4% at $109.25 per share in after-hours trading on Tuesday.
Sundar Pichai, CEO of Alphabet and Google, commented, “In the second quarter our performance was driven by Search and Cloud. The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term.”
Microsoft Corporation (MSFT) Falls Short On Earnings & Revenue For Q4 2022
Moving on, let’s check out Microsoft Corporation (NASDAQ: MSFT). Also on Tuesday afternoon, Microsoft (MSFT) reported its fourth quarter 2022 earnings. In the report, the company reported a earnings of $2.23 per share on revenue of $51.9 billion. The consensus earnings estimate was $2.28 per share on revenue of $52.9 billion. This means MSFT missed on earnings and revenue estimates. As a result, shares of MSFT stock went green to close out Tuesday’s afternoon extended trading session. Shares of MSFT closed Tuesday after-hours session up 3.97% at $261.90 a share.
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” stated Amy Hood, executive vice president, and chief financial officer of Microsoft. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
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