U.S. Stock Market Pre-market Highlights | Initial Jobless Claims Hit Nearly 4-Year Low! Google and Tesla Report Negative Free Cash Flow, Both Drop in Pre-market Trading

• 1. All three major US stock index futures fell: Nasdaq futures down 1.15%, S&P 500 index futures down 0.79%, Dow futures down 0.84%.
• 2. Major European stock indices declined collectively: Germany’s DAX down 0.98%, UK FTSE 100 down 0.47%, France’s CAC down 1.36%, Euro Stoxx 50 down 1.26%.
• 3. US initial jobless claims for the week ending July 18 reached 187,000, the lowest since the week of September 24, 2022; expected 212,000, previous value revised from 208,000 to 209,000.
• 4. US President Trump: Due to differences between parties regarding spending priorities, the federal government is expected to “shut down” in September.
• 5. The US House of Representatives passed a bill named the “Ban Insider Trading Act,” aimed at restricting stock transactions by members of Congress and their families.
• 6. Google disclosed that it holds 94.1 billion dollars of SpaceX shares, of which 80 billion dollars are subject to a short-term lock-up agreement.
• 7. Intel will announce Q2 earnings after US market hours; the market is focusing on AI chip demand, layoffs, and potential cooperation with Apple.
• 8. Eli Lilly plans to submit a listing application for its next-generation weight loss drug Retatrutide to the FDA in Q1 2027.
• 9. IBM acquired flagship research institute HRL Laboratories to promote the development of quantum technology.
• 10. Uber cut 10% of customer service positions, as part of their streamlined personnel structure and comprehensive embrace of AI in its overall strategy.
• 11. Vale shareholders elected a new chairman; Q2 iron ore output reached an eight-year high.
• 12. Decon Medical was selected as the first company to participate in the FDA digital health device pilot program.
• 13. Porsche reportedly plans to double the scale of layoffs to 9,000 people.

Earnings Announcements:

• 1. Google’s parent company Alphabet Q2 revenue increased 24% year-on-year to 119.8 billion dollars, driven by surging equity gains from Anthropic and others. Net profit exploded by 298% year-on-year to 112.1 billion yuan; free cash flow was negative 5.9 billion dollars, with annual capital expenditure guidance raised.
• 2. Tesla Q2 revenue increased 26% year-on-year to 28.2 billion dollars, gross margin of 16.8% missed expectations; free cash flow turned negative for the first time in two years, executives reiterated that annual capital expenditures will exceed 25 billion dollars.
• 3. Comcast Q2 revenue decreased slightly by 1.2% year-on-year to 29.94 billion dollars, plans to spin off NBC Universal and Sky TV.
• 4. American Airlines Group Q2 revenue was 16.735 billion dollars and adjusted earnings per share of 0.15 dollars, both beating expectations.
• 5. T-Mobile US Q2 total revenue was 22.79 billion dollars, missing expectations, with earnings per share of 2.99 dollars.
• 6. Blackstone Q2 distributable profit per share increased 26% year-on-year to 1.52 dollars, assets under management reached 1.35 trillion dollars, beating expectations.
• 7. Southwest Airlines Q2 revenue increased 16.4% year-on-year to 8.43 billion dollars, adjusted earnings per share of 0.94 dollars beat expectations.
• 8. Nokia Q2 net sales were 4.8 billion euros, adjusted operating profit increased 18% year-on-year to 434 million euros, beating expectations.
• 9. STMicroelectronics Q2 net revenue was 3.49 billion dollars, net profit reached 222 million dollars, and its data center business target was raised.
• 10. ServiceNow Q2 subscription revenue increased 24.5% year-on-year to 3.88 billion dollars, with full-year subscription revenue outlook raised.