Stock Market Today, July 22: Nasdaq Slides Prior to Tesla and Alphabet's Earnings After Market Close

Falling 0.57% to 25,691, the Nasdaq Composite (NASDAQINDEX:^IXIC) led the market lower as rising oil prices pressured growth stocks, while the S&P 500 (SNPINDEX:^GSPC) slipped 0.13% to 7,499 and the Dow Jones Industrial Average (DJINDICES:^DJI) finished nearly flat, down 0.01% to 52,219.

Gold prices gained 1.49% to $4,137.10 as of U.S. market close and the 10-Year Treasury yield rose 0.03% to 4.63%, as the Utilities sector climbed while Communication Services and Healthcare shares finished lower.

Today’s biggest moves

Super Micro Computer rocketed 26% on a record backlog, while AT&T smashed EPS expectations, sending its stock 4% higher. Elsewhere, Rocket Lab stock opened higher, but sold off to end the day largely flat after announcing a $266 million contract with the U.S. government for 12 suborbital launches.

On the negative side, Reddit slipped 8% after a report suggested the company may limit Alphabet’s access to its massive trove of content for AI training. However, this is likely just posturing in hopes of negotiating a better licensing deal with the Magnificent Seven juggernaut.

What this means for investors

Now, the market’s attention is largely on Alphabet and Tesla after hours, as the two stocks just reported their second-quarter earnings. As of 5:45 p.m. ET, Alphabet stock was down 4%, and Tesla had dipped 5%.

While Alphabet delivered sales growth of 24%, headlined by its cloud department’s revenue soaring 81%, free cash flow turned negative as operating cash flow was outweighed by $45 billion in capital expenditures during the quarter.

As for Tesla, revenue rose 26%, but adjusted EPS was well below Wall Street expectations, pressuring shares. Tesla will likely remain volatile as it transitions production from mostly EVs to Cybercabs, Megapack 3, Tesla Semi, Optimus robots, and other new verticals.

Currently, Nasdaq futures are down 1%.

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