MARKET WRAP

Stocks were slightly lower today as investors digested the latest batch of earnings and awaited Alphabet and Tesla’s reports after the market close.

The S&P 500 and Nasdaq closed in the red, while the Russell 2000 outperformed, up more than 1%.

Energy was the worst-performing sector, down more than 1%. Financials and Materials were the top performers, both up around a third of a percent.

On the earnings front, investors were watching big moves in names like UPS, GM, Spotify, NXPI, and Comcast.

Spotify shares soared 12% after reporting record profits and strong guidance. General Motors and UPS were among the biggest losers of the day - falling 6% and 12%, respectively, on their reports.

Despite some disappointments, FactSet data shows that about 20% of S&P 500 companies have posted second-quarter results, with 80% of those names beating expectations.

This number could rise as the Mag 7 releases come out. The firm’s Senior Earnings Analyst, John Butters, notes Nvidia, Amazon, Meta, and Alphabet are expected to be among the top five contributors to year-over-year earnings growth for the S&P 500 in Q2 2024.

MRKT MATRIX: July 23, 2024

Today’s Top Stories:

• S&P 500 is little changed as traders await key tech earnings (CNBC)

• Which “Magnificent 7” Companies Are Top Contributors To Earnings Growth For The S&P 500 For Q2? (FactSet)

• UPS shares on pace for worst day on record after earnings miss, guidance cut (CNBC)

• GM Delays EV Projects in Latest Industry Pullback (WSJ)

• Ether ETFs Trade Over $500 Million in Strong Crypto Fund Debut (Bloomberg)

• Wiz walks away from $23 billion deal with Google, will pursue IPO (CNBC)

• Alexa Is in Millions of Households—and Amazon Is Losing Billions (WSJ)

• U.S. Home Prices Hit Record in June for Second Consecutive Month (WSJ)

• America's recession indicators are more busted than ever (Axios)

Today’s MRKT Call is Presented by FactSet

What Earnings Reveal About The Market

Guy Adami, Dan Nathan and Carter Worth break down the top market headlines and bring you stock market trade ideas for Tuesday, July 23rd.

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Today’s Okay, Computer. is Presented by RBC and Current

Mega-Cap Earnings Preview With Gene Munster

Dan Nathan is joined by Gene Munster, Managing Partner at Deepwater Asset Management, to discuss key tech stocks ahead of their earnings reports. Key focus areas include the AI hype cycle and recent NASDAQ sell-off dynamics. They analyze market sentiments, expected pullbacks, and specific stock movements, particularly in the semiconductor space. Google and its AI advances, Tesla and its expected vehicle launches, Microsoft's alignment with OpenAI, Meta's AI integrations, and Apple's upcoming AI features in iPhones. They also touch upon the private sector as it relates to the batch of AI-first companies due to come online in the next couple of years.

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