Recovery underway? 23/07/2026

 HOT stories for today

Market wrap:

• US stocks finished mostly lower on Wednesday as investors worked through another heavy round of corporate earnings, renewed concerns over the cost of artificial-intelligence investment and a fresh rise in oil prices. The Dow Jones Industrial Average was virtually unchanged, slipping just 6 points, while the S&P 500 fell 0.1% and the Nasdaq Composite declined 0.6%. Technology shares came under the most pressure as investors questioned whether the scale of AI-related spending will translate into returns quickly enough to support elevated valuations. Energy markets added to the cautious tone. Oil prices climbed after a tanker was struck by an unidentified projectile off the coast of Saudi Arabia and President Donald Trump threatened further action against Iranian infrastructure. Brent crude rose 2% to $95.99 a barrel, while West Texas Intermediate gained 1.7% to $88.27, reviving concerns that higher energy costs could complicate the inflation outlook. 
• Attention now turns to another busy earnings session. Dow (DOW), American Airlines (AAL), T-Mobile (TMUS), Union Pacific (UNP) and  Norfolk Southern (NSC) are scheduled to report before the opening bell, offering fresh insight into industrial demand, consumer travel and transportation activity. Intel (INTC) will report after the close, with investors focused on margins, spending plans and progress in its turnaround strategy. Weekly jobless claims are also due at 8:30 a.m. ET and will provide the latest signal on the strength of the US labor market.

Alphabet and Tesla Highlight the AI Trade

• Alphabet (GOOGL): Shares fell in extended trading even after the Google parent beat revenue expectations, as investors focused on another sharp increase in AI spending. Google Cloud revenue surged 82% and Gemini reached 950 million monthly users, but Alphabet raised its 2026 capital expenditure forecast to as much as $205 billion. Management said demand remains strong and capacity constrained, leaving investors to weigh rapid AI adoption against the rising cost of building the infrastructure behind it.
• Tesla (TSLA): Shares slid about 4% after earnings missed expectations and heavy investment pushed free cash flow into negative territory. Revenue rose 26%, helped by stronger vehicle deliveries, but margins weakened as lower-priced models, declining regulatory credit revenue, and rising costs pressured profitability. Tesla continues pouring money into AI chips, Robotaxi, Cybercab and Optimus, with capital spending more than doubling as Elon Musk shifts the company’s long-term story further away from traditional car sales.

Stocks on the move:

• IBM (IBM): Shares gained about 2% despite quarterly results falling slightly short of expectations. Adjusted earnings missed estimates by four cents, while revenue also came in below consensus, though the reaction was supported by the fact that IBM had already warned on earnings last week.
• Texas Instruments (TXN): Shares fell about 3% even after the chipmaker beat expectations on both earnings and revenue, suggesting investors were looking for a stronger outlook rather than another backward-looking beat.
• Southwest Airlines (LUV): Shares slipped 1% after quarterly revenue missed estimates and the airline issued a weaker-than-expected third-quarter forecast.
• QuantumScape (QS): Shares declined 3% despite reporting a narrower-than-expected quarterly loss. The battery developer reaffirmed its full-year adjusted EBITDA loss outlook of $250 million to $275 million.
• ServiceNow (NOW): Shares rose more than 2% after the enterprise-software company beat second-quarter earnings and revenue estimates and raised its full-year subscription revenue outlook.

Watchlist: GOOGL, TSLA, IBM, NOW, QS, TXN, RTX, TMO, MU, LUV, UNP, CMCSA

Key Economic Events Today:

EST time

08:30 am: USD Unemployment Claims


Earnings

BMO (Before Market Open): RTX Corporation (RTX), T-Mobile US (TMUS), Thermo Fisher (TMO), Union Pacific (UNP), Lockheed Martin (LMT), Blackstone (BX), Comcast (CMCSA), Freeport- McMoran (FCX), Nokia (NOK)

AMC (After Market Close): Intel Corporation (INTC), SAP SE (SAP), Newmont Corporation (NEM)



The TEFS Analyst team wishes you a successful day!