Pre-Bell｜Wall St Futures Mixed; Alphabet Up 4%; Tesla And IBM Down 6%

Wall Street futures were mixed on Thursday as investors sifted through a flurry of earnings from heavyweights like Alphabet and Tesla, all while keeping a watchful eye on U.S. trade negotiations.

Market Snapshot

By 8:31 a.m. ET, S&P 500 E-minis were up 3.5 points, or 0.05%, Nasdaq100 E-minis were up 62 points, or 0.27%, and Dow E-minis were down 258 points, or 0.57%.

Pre-Market Movers

Tesla was falling 6% after reporting a16% decline in net incomeon a 12% drop in revenue to $22.5 billion. Revenue from Tesla’s automotive business fell 16%, while revenue at its energy business declined 7%. Tesla CEO Elon Musk, on a conference call following the earnings report’s release, said production had begun on a less expensive EV and that sales could start in the fourth quarter. He also discussed plans for Tesla to “greatly expand” its robo-taxi service, saying the service should cover about “half the U.S. population” by the end of the year.

Second-quarter earnings at Alphabet topped analysts’ estimates and shares of the parent of Google were rising 3.6%. Alphabet reported earnings of $2.31 a share on revenue of $96.43 billion versus consensus that called for earnings of $2.19 a share on revenue of $93.99 billion. Cloud revenue in the period jumped to $13.62 billion from $10.35 billion a year earlier. Alphabet said it was raising its capital-expenditure plans for the year, targeting $85 billion, up from a previous call for $75 billion. Chief Executive Sundar Pichai attributed the move to the “strong and growing demand for our cloud products and services.”

IBM fell 6.2% after the technology giant reportedadjusted earnings in the second quarterof $2.80 a share, topping analysts’ expectations of $2.65. Revenue of $17 billion beat expectations of $16.6 billion. $IBM(IBM)$ said it expects at least 5% revenue growth in constant currency in 2025, and now expects to generate more than $13.5 billion in free cash flow. In April, IBM said it expected to generateabout$13.5 billion in free cash flow. Coming into the report, IBM shares had risen 28% this year.

T-Mobile US was up 4.3% after the telecommunications company reportedbetter-than-expected second-quarter earnings and revenueand raised guidance for postpaid net customer additions. For the year,T-Mobilesaid it now expects postpaid net customer additions of between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.

Enterprise-software company ServiceNow reported better-than-expected second-quarter adjusted earnings and revenue and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remained strong. The stock was rising 7.1%.

Honeywell International fell 1.7% after the industrial conglomerate delivered a solid beat-and-raise second quarter as it prepares to break into three pieces. Honeywell reported adjusted earnings of $2.75 a share on sales of $10.4 billion. Analysts expected earnings of $2.66 on sales of $10.1 billion.

Dow Chemical fell 7.8% after reporting an adjusted loss in the second quarter of 42 cents a share, wider than analysts’ estimates that called for a loss of 17 cents. The company also slashed its dividend to 35 cents a share from 70 cents.

Southwest Airlines was down 1.8% after the carrier posted adjusted earnings in the second quarter of 43 cents a share, below analysts’ forecasts of 51 cents, on revenue of $7.24 billion that also came up short. But Southwest said recent industry demand “shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year.”

American Airlines reported adjusted second-quarter earnings of 95 cents a share, beating estimates of 78 cents. However, the airline said it now expects full-year earnings of between a loss of 20 cents a share and a profit of 80 cents. Wall Street expected 72 cents. American said the “top end of the range is achievable if demand in the domestic market continues to strengthen and only expects to be at the bottom end of the range if there were to be macro weaknesses that are not seen today.” Shares fell 4.5%.

Chipotle Mexican Grill, the burrito chain, was falling 11% after posting second-quarter profit and revenue that both met analysts’ expectations but same-store sales for existing restaurants that declined 4% from a year earlier. For 2025, Chipotle expects comparable sales flat with 2o24.

Las Vegas Sands earned an adjusted 79 cents a share in the second quarter, beating analysts’ estimates of 53 cents. Revenue of $3.18 billion topped consensus of $2.84 billion. The casino company was up 6.7%.

Market News

European Central Bank holds interest rates as tariff turmoil keeps policymakers on edge

The European Central Bank on Thursday kept interest rates steady amid major economic uncertainty, as the European Union scrambles to negotiate a trade agreement with the U.S. before the end of the month.

The ECB has cut interest rates at each of its four meetings so far this year, taking its key deposit facility from 3% in January to 2% in June. Last year it reduced rates from a record high of 4%.

Trump lifts tariff baseline rate, warns countries face 15-50% range

President Trump is settling on a new baseline tariff rate as the US clinched a trade deal with Japan and made progress toward a similar deal with the European Union. Trump said reciprocal tariffs on US trading partners would range from 15% to 50%, with countries the administration views as difficult receiving the higher rate.