Tesla and IBM are dragging the Dow this morning
Stock futures are a mixed bag this morning, as investors digest a slew of Big Tech earnings, including Tesla (TSLA), which is down 6.5% premarket, and IBM (IBM), down 7%. Continued tensions between Fed Chair Jerome Powell and President Donald Trump are adding pressure, as Trump plans to visit the Federal Reserve today -- the first time an American president has done so in almost 20 years.
Before the bell, futures on the Dow Jones Industrial Average (DJI) are down 242 points. S&P 500 Index (SPX) futures are flat, brushing off another record session, while Nasdaq-100 Index (NDX) futures rise with help from Alphabet's (GOOGL) post-earnings pop.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 2.2 million call contracts and 1.3 million put contracts traded on Wednesday. The single-session equity put/call ratio stayed at 0.55, while the 21-day moving average remained at 59.
- Shares of Tesla Inc (NASDQ:TSLA) are plunging 6.5% before the open, after the company posted a second consecutive quarterly drop in auto sales and CEO Elon Musk said there will likely be a "few rough quarters" coming. Ahead of the open, Tesla stock sports a 17% year-to-date deficit, and despite the 50-day moving average emerging as support this week, the equity will gap significantly below this area, should these losses hold.
- Big tech leader IBM Common Stock (NYSE:IBM) is 6.2% lower in premarket trading, despite the company's second-quarter earnings and revenue beat. The stock has stalled out near the $280 this week, with today's drop likely to test the level's recent support. In 2025, IBM has added 28%.
- Google parent Alphabet Inc (NASDAQ:GOOGL) is moving 3.6% higher ahead of the bell, after the company reported a second-quarter earnings and revenue beat, including a year-over-year boost in cloud revenue. If today's pop continues, GOOGL will be eyeing its 12th daily win in 13 sessions. Within the last three months, the equity has added 22.4% on the charts.
- More earnings are due out this week.
ECB Holds Rates Steady
Asian markets extended yesterday’s gains amid U.S. trade optimism. Japan’s Nikkei gained 1.6%, Hong Kong’s Hang Seng rose 0.5%, China’s Shanghai Composite jumped 0.7%, and the South Korean Kospi added 0.2%. Meanwhile, LSEG data showed the Chinese offshore yuan appreciated to 7.1444 against the dollar, its strongest level since November 2024, while South Korea avoided a technical recession with a 0.6% quarterly expansion in gross domestic product (GDP).
European markets are mostly higher, following the European Central Bank’s (ECB) decision to keep interest rates unchanged. Meanwhile, the U.K. is set to sign its trade agreement with India today, which U.K. officials say will add £5 billion ($6.8 billion) to the British economy. London’s FTSE 100 was last seen up 1%, while the French CAC 40 is flat, and the German DAX is 0.5% higher.