Dow Jones Futures Fall: Microsoft Erases Gains On Weak Guidance;

Dow Jones futures fell after hours, along with S&P 500 futures and Nasdaq futures, as Microsoft (MSFT) guidance overrode better-than-feared earnings. ASML (ASML), Boeing (BA) and Tesla (TSLA) are on tap Wednesday.

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The stock market rally traded in a relatively narrow range Tuesday after big gains in the prior two sessions. The major indexes closed mixed. The Nasdaq retreated as the Justice Department filed a second antitrust suit vs. Google parent Alphabet (GOOGL).

Microsoft earnings edged past views on strong cloud-computing growth. But the software giant gave weak guidance. MSFT stock, up strongly initially, reversed lower.

Intuitive Surgical (ISRG) and Texas Instruments (TXN) also reported. ISRG earnings missed with in-line revenue. Texas Instruments slightly beat, but guided lower. ISRG stock tumbled while TXN stock fell slightly.

Early Wednesday, chip equipment giant ASML reports, with fellow semiconductor equipment makers Lam Research (LRCX), Teradyne (TER) and Wolfspeed (WOLF) due after the close.

Boeing and Freeport-McMoRan (FCX) also report early Wednesday.

Tesla will headline earnings Wednesday night. Tesla earnings will be important but investors will likely focus on 2023 guidance, especially following big price cuts worldwide to start the year. Those price cuts have boosted Tesla demand — at the expense of margins — but will that boost last?

After the close, Tesla said it will spend $3.6 billion at its facilities outside Reno, Nevada, for a Tesla Semi factory and for mass producing 4680 battery cells. That confirmed earlier reports.

Tesla stock fell 2% overnight. Shares edged up 0.1% on Tuesday to 143.89, nearing the 50-day line. TSLA stock is up nearly 17% so far in 2023.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures declined 0.4%. Nasdaq 100 futures sank 0.7%, reversing from modest gains initially. MSFT stock is a Dow Jones, S&P 500 and Nasdaq component.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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Stock Market Rally

After a NYSE glitch disrupted some 100 tickers at the open, the stock market rally traded modestly lower in the morning before gradually improving to mixed.

The Dow Jones Industrial Average rose 0.3% in Tuesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite declined 0.3%. The small-cap Russell 2000 gave up 0.25%.

U.S. crude oil prices fell 1.8% to $80.13 a barrel. Natural gas slumped 5.5% after rising more than 6% Monday.

The 10-year Treasury yield fell basis points to 3.47% amid mixed to weak manufacturing data.

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