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Google-parent Alphabet slid 6.6% in premarket trading as its
cloud business crawled to its slowest growth in at least 11
quarters.
Microsoft, on the other hand, rose 3.9% after topping
expectations for first-quarter results in all segments,
including its cloud business.
"Microsoft's head start in AI seems to be paying off, while
Alphabet appears to be in catch-up mode on both this and cloud
computing," said Danni Hewson, AJ Bell's head of financial
analysis.
However, a rise in long-dated U.S. Treasury yields also
pressured other mega-cap stocks. Meta Platforms, due to report
after the closing bell, fell 0.7%, while Apple and Amazon.com
dropped 0.3% and 1.2%, respectively.
Mobile network operator T-Mobile US gained 1.5% after raising
the lower end of its annual free cash flow forecast.
Of the 118 S&P 500 companies that have reported so far, 81% have
beaten analysts' earnings expectations, LSEG data showed on
Tuesday. Third-quarter earnings are expected to grow 1.7%
year-on-year.
Meanwhile, Israel intensified its bombing of southern Gaza
overnight as world leaders called for a halt to fighting to
allow aid into the besieged enclave.
At 7:05 a.m. ET, Dow e-minis were up 47 points, or 0.14%, S&P
500 e-minis were down 13 points, or 0.3%, and Nasdaq 100 e-minis
were down 78.75 points, or 0.53%.
All three major U.S. stock indexes ended higher in the previous
session as a bunch of strong corporate earnings and upbeat
forecasts stoked risk appetite.
On the data front, focus will be on new home sales for September
at 10 a.m. ET, with third-quarter gross domestic product,
durable goods and personal consumption expenditure data
scheduled for the rest of the week.
U.S. Federal Reserve officials were under a media blackout ahead
of their decision on interest rates on Nov. 1.
Traders put the chance of interest rates remaining unchanged in
November and December at around 99% and 70%, respectively,
according to CME's FedWatch tool.
Texas Instruments shed 5.3% after the analog chipmaker forecast
fourth-quarter revenue and profit below estimates.
CoStar Group dipped 7.2% after the real estate information
provider trimmed its annual revenue outlook.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru;
Editing by Savio D'Souza and Shounak Dasgupta)
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