Microsoft, Shopify fall after earnings, Texas Instruments sees better than expected revenue


Early earnings results may swing market, but Fed rate decision will drive Tuesday action.

Investors placed some last-minute markers on Tuesday as stocks fell ahead of Wednesday’s Federal Reserve decision on interest rates. U.S. Treasurys rose.

Markets pondered several significant earnings reports during the session, but the market force remains the Fed’s Federal Open Market Committee’s 2 p.m. rate announcement, which is expected to hike a key interest rate by three quarters of a point.

"High frequency economic indicators have deteriorated, both in the U.S. and elsewhere," Tiffany Wilding, a U.S. economist at bond giant PIMCO (ETR:ALV), wrote in a Tuesday note to clients. "Inflationary supply shocks have been more acute than originally expected, implying central banks may need to engineer recessions to restore price stability." Watch for the rate decision to arrive at 2 p.m. Wednesday, followed by a press conference by Federal Reserve Chairman Jerome Powell.

The S&P 500 fell 1.2%, 45.79 points, to 3921.05. The Nasdaq composite, which includes several of the largest tech companies, lost 220.09, or 1.9%, to close at 11562.57, and the Dow Jones Industrial Average shed 0.7% to finish at 31761.54.

Shares of Walmart fell 7.6% after it warned that higher food and gas prices are eating into consumers' broader household budgets.

Microsoft's earnings

Microsoft (NASDAQ: MSFT) shares fell in after hours trading when the company said its cloud business slowed more than expected, and a strong dollar reduced overseas results. The company also said video game sales slowed.

The company Tuesday said it earned $16.7 billion in its fiscal fourth quarter ended in June, less than analyst estimates of $17.3 billion. Revenue rose 12% from a year ago but also missed estimates.

Microsoft's fiscal fourth quarter video game sales fell 7%, after rising six percent in the previous quarter.

McDonald's (NYSE: MCD) said inflation is hitting its customers and that its sales fell despite higher prices.

McDonald'sChief Executive Chris Kempczinski said on Tuesday, "The operating environment across the competitive landscape remains challenging,"

Shopify's earnings

Shopify Inc (NYSE: SHOP) shares fell 15% after the company said it's cutting 1000 workers, or 10% of its staff, after overhiring earlier this year. That's a fate it shared with several other tech firms this year.

The shares have fallen more than 80% since they peaked in Nov. near $175, adjusting for a recent stock split. The company reports quarterly results on Wednesday.

And Texas Instruments (NASDAQ: TXN) said Tuesday that its second quarter revenue rose 14%. That's better than expected after an April company warning its revenue would be between $4.2 billion and $4.8 billion based on weak demand projections. Instead, it said revenue hit $5.2 billion in the quarter

Other earnings due Wednesday include Apple, Amazon, Mastercard, Pfizer and Merck.

Share: Feed news

VALUEWALK LLC is not a registered or licensed investment advisor in any jurisdiction. Nothing on this website or related properties should be considered personalized investments advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security. VALUEWALK LLC, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company disclaims any liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds on to intraday gains after upbeat US data

EUR/USD holds on to intraday gains after upbeat US data

EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path. 

EUR/USD News
GBP/USD pressured near weekly lows

GBP/USD pressured near weekly lows

GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals. 

GBP/USD News
Gold stabilizes after bouncing off 100-day moving average

Gold stabilizes after bouncing off 100-day moving average

Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.

Gold News
Bitcoin to 100k or pullback to 78k?

Bitcoin to 100k or pullback to 78k?

Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.

Read more
Week ahead: Preliminary November PMIs to catch the market’s attention

Week ahead: Preliminary November PMIs to catch the market’s attention

With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures