:max_bytes(150000):strip_icc()/MarketBlogImage-final-6ac06c7b9250446a8e86c566b11e02e1.png?w=1068&resize=1068,0&ssl=1 "Investors Await Big Tech Earnings as Major Stock Indexes Remain Stable")
Despite the strong earnings reports from Spotify, GE Aerospace, and the surge in interest in small-cap stocks, major indexes are pointing to a lower open today.
Spotify (SPOT) shares soared after the streaming audio company posted quarterly earnings that surpassed analysts’ expectations. The company also announced third-quarter revenue projections in line with market expectations, driven by a 12% increase in premium subscribers. Spotify shares were up 11% in recent trading, reaching their highest level since early 2021.
Interest in small-cap stocks continues to surge, with the Russell 2000 outpacing major stock indexes. DataTrek Research noted a recent spike in searches for “IWM,” the iShares Russell 2000 exchange-traded fund, indicating growing interest in smaller shares. Small caps have been performing well, with expectations for continued growth despite potential volatility.
GE Aerospace shares jumped after the company reported strong second-quarter results and raised its full-year guidance. The aerospace parts maker saw a 4% increase in revenue and now projects a higher operating profit and earnings per share for the year. Analysts believe GE Aerospace is well-positioned to benefit from the growth of the aerospace industry.
On the other hand, United Parcel Service (UPS) shares plunged to a four-year low after reporting disappointing second-quarter earnings. The shipping giant’s revenue from shipping operations fell, and net income dropped, leading to a lowered full-year revenue projection and adjusted operating margin. UPS shares were down 12% in early trading.
Despite the positive news from individual companies, futures tied to major indexes are pointing to a lower open today. Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures were all down, indicating a potential dip in the market at the start of the trading day.
Investors will be closely watching how these developments unfold throughout the day and how they may impact the overall market performance.
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