Here are five things you must know for Tuesday, July 24:
1. -- Stocks Rise on Robust Earnings
U.S. stock futures were rising on Tuesday, July 24, with solid corporate earnings boosting shares on Wall Street and in Europe.
Contracts tied to the Dow Jones Industrial Average I:DJI rose 97 points, and futures for the S&P 500 I:GSPC gained 5.75 points. Nasdaq I:IXIC futures were up 8.75 points, getting a boost from much stronger-than-expected second-quarter earnings from Alphabet Inc. (GOOGL) - Get Report .
The second-quarter earnings season so far has been robust, with estimates suggesting U.S. companies will grow their collective bottom lines from a year earlier by 22%, a figure that would represent one of the strongest quarters in a decade and the first-ever back-to-back run of 20%-plus increases.
The economic calendar in the U.S. on Tuesday includes the FHFA House Price Index for May at 9 a.m. ET, and the PMI Composite Flash for July at 9:45 a.m.
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2. -- Alphabet Set to Open at a Record High as Profit Surges
Shares of Alphabet were set to open at a record high on Tuesday, after jumping 4.3% in premarket trading after the parent of Google posted a significant earnings beat.
Alphabet reported adjusted earnings of $11.75 share, higher than the $9.64 expected by analysts. Excluding traffic acquisition costs, revenue was $26.24 billion, above consensus of $25.58 billion. Including a massive $5.1 billion fine issued by the European Union that the company plans to appeal, Alphabet's earnings were $4.54 a share.
Revenue in the quarter rose 26% in dollars and 23% in constant currency, according to the company. Paid ad clicks on Google's own sites and apps rose 58% year over year, nearly on par with first-quarter growth of 59%, with mobile search and YouTube the main drivers. The increase more than offset a 22% drop in cost per click, or average ad price, for Google.
- Google Makes New Highs After Posting Strong Earnings: 8 Key Takeaways
- Alphabet Surges to Record High; Google Parent Shrugs Off EU Fine With Blowout Q2
"Overall, it was a great quarter for Alphabet with broad beats across many different lines," said Cramer and the AAP team. "This is the type of performance we had hoped to see from the company for multiple quarters now, and management proved that just beating the quarter wasn't enough; they wanted to blow it out in the face of their European fine."
3. -- AT&T and Verizon Highlight Tuesday's Earnings Calendar
Harley-Davidson Inc. (HOG) - Get Report reported second-quarter earnings of $1.45 a share, beating estimates of $1.34. Revenue from motorcycle products fell 3.3% to $1.53 billion as worldwide retail sales fell 3.6%. However, Harley said it was maintaining its full-year shipments forecast of between 231,000 and 236,000 motorcycles for the 2018 fiscal year.
Shares rose 1.5% in premarket trading.
Verizon Communications Inc. (VZ) - Get Report earned an adjusted $1.20 a share in the second quarter, 6 cents ahead of estimates. Revenue of $32.2 billion also beat forecasts. Shares rose 1.3% in premarket trading.
United Technologies Corp. reported second-quarter earnings and revenue that beat Wall Street's estimates. The industrial giant also raised its 2018 earnings and revenue outlook. The stock rose 2.4%.
4. -- Whirlpool Tumbles as It Swings to a Massive Loss
The per-share loss in the quarter was $9.50. Adjusted earnings of $3.20 a share came in below analysts' forecasts of $3.43.
The maker of Maytag and KitchenAid appliances reported second-quarter revenue of $5.14 billion, down from $5.3 billion a year earlier.
Whirlpool said it expects full-year earnings in the range of $14.20 to $14.80 a share. Analysts have called for earnings of $15.64 a share.
5. -- New York Daily News Cuts Half of Its Staff
The New York Daily News cut half of its newsroom staff on Monday, and Editor-in-Chief Jim Rich was released.
The paper was sold to Tronc Inc. (TRNC) , the owner of the Chicago Tribune, last year for $1.
In an email sent to employees on Monday, Tronc said staff at the Daily News will focus on breaking news involving "crime, civil justice and public responsibility."
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