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Hello. I'm Chelsey Dulaney. Welcome to a big week for Big Tech (earnings).
Alphabet, Meta Platforms, Microsoft and Tesla are all on deck, in a week in which more than 30% of S&P 500 companies are due to release quarterly updates, according to FactSet.
The results-and investor reactions-will help determine stocks' next move after a tough spell. Last week, the Nasdaq logged its worst weekly performance since 2022. Stock futures gained early Monday, and oil prices pulled back.
Follow our live coverage throughout the day for the latest news affecting markets.
Meanwhile, our Charley Grant reports on how the earnings onslaught could shake out in stock markets.
Live Markets Snapshot Data refreshes every time you open this email. CONTENT FROM: GE Aerospace A New Era Begins
GE Aerospace launched as an independent, public company and delivered strong results in the first quarter of 2024.
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Stocks to Watch
Informatica $(INFA)$ : The software provider's shares fell more than 6% in premarket trading after the Journal reported that Salesforce $(CRM)$ has backed away from its attempt to buy the company . Salesforce's stock rose roughly 3% ahead of the market open.
Tesla $(TSLA)$ : The electric-vehicle maker cut prices further in China amid an intensifying price war. Tesla's shares fell 2.5% premarket, threatening to further deepen the company's 41% loss this year. Li Auto $(LI)$ 's American depositary receipts also fell premarket, after the company cut prices for its EVs in the country as well.
Tencent (HK:700) , (TCEHY) : The gaming and social-media giant said it would release "Dungeon & Fighter Mobile," a highly anticipated mobile game, earlier than expected. Its stock gained more than 5% in Hong Kong, its biggest rise since July.
Coinbase $(COIN)$ : Shares of the crypto exchange were 3.5% higher premarket, rising alongside the price of bitcoin and other cryptocurrencies. Bitcoin most recently traded around $66,000, following the token's highly anticipated halving event .
Earnings are due from Verizon $(VZ)$ ahead of the market open and German software maker SAP $(SAP)$ , (XE: SAP) after the closing bell.
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Big Tech Faces Earnings Test After Rout
By Charley Grant
Strong earnings from big technology companies have pushed the stock market higher for more than a year. This time around, a sharp selloff has increased the pressure on the group to deliver.
The so-called Magnificent Seven stocks shed a combined $950 billion in market value last week, the largest on record. Microsoft fell 5.4% last week, its weakest since January 2023, while Nvidia had its worst week since September 2022. The S&P 500 has fallen 5.5% so far in April.
Earnings this week from several Magnificent Seven companies, including Tesla and Microsoft, offer the next opportunity for stocks to regain their footing.
Investors have flocked to tech stocks because they generally have offered superior growth prospects. The information technology sector is expected to increase earnings by 20% in the first quarter, according to analyst forecasts compiled by FactSet. They project 20% in communications services, which includes Meta and Alphabet. The S&P 500's earnings are expected to grow by 0.5%.
Keep reading .
The Wall Street Journal's Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying-a charge the Journal and the U.S. government vehemently deny. Follow the latest coverage , sign up for an email alert , and learn how you can use social media to support Evan.
Charting the Markets
Giant investment companies now control sums rivaling the economies of many large countries. They are pushing into new business areas , blurring the lines that define who does what on Wall Street and nudging once-dominant banks toward the sidelines.
Individual investors still love Tesla . They account for a higher share of Tesla's total trading volume than any of the other big tech stocks even as shares have fallen 40% this year. Tesla reports quarterly earnings on Tuesday.
The Russell 2000 index of smaller companies badly lagged the broader stock rally this year, and has fallen more in the April rout than indexes of bigger companies. The main cause is the recent resurgence in interest rates which tends to hit small companies harder.
Must Reads
Wall Street has abandoned Wall Street. JPMorgan Chase closed its branch there on Friday, the latest big bank to call quits on the street where American finance was born.
Billions in dirty money flies under the radar at the world's two busiest airports. Heathrow-to-Dubai flights have two big money-laundering features : One airport doesn't scan outbound luggage for cash and the other welcomes sacks of it.
Some home sellers are giving up on waiting for the Federal Reserve to lower rates. People are abandoning their super-low mortgage rates to upsize, downsize and change jobs .
More:
Sam Altman Invests in Energy Startup Focused on AI Data Centers The Coney Island Apartment Complex That Nearly Sparked a Banking Panic Nike Reverses Course as Innovation Stalls and Rivals Gain Ground This Day in Markets On this day in 1980, market guru Joe Granville made a prescient call when he told his 1,500 premium paying subscribers to buy stocks. The next day, the Dow surged 4%. Over the longer term, Granville's advice wasn't so lucrative. His followers lost 98% of their money between 1980 and 1987, according to financial newsletter expert Mark Hulbert. Beyond the Newsroom
Buy Side from WSJ: Best 1-Year CD Rates for April 2024
About Us
We want to be the first place you go to get ready for the opening bell every day. This newsletter is written by Chelsey Dulaney ( [chelsey.dulaney@wsj.com]; @chelseydulaney ) in London.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
April 22, 2024 06:22 ET (10:22 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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