US stock futures fell on Wednesday after disappointing third-quarter results from Alphabet and weak revenue guidance from Microsoft, marking a harbinger of earnings for major tech companies this week.
Dow Jones Industrial Average futures were down 49 points, or 0.2%. S&P 500 and Nasdaq 100 futures declined 0.7% and 1.6%, respectively.
Shares of Google subsidiary Alphabet fell 6% in the primary market. Internet search giant Missed expectations on the final result. Alphabet also reported a drop in YouTube ad revenue, which prompted investors to discuss the prospects for other tech companies that rely on ad spend.
“I think we have to take a big picture perspective and realize that nobody is really immune in this market, there’s a slowdown in spending,” Sand Hill Global Advisors Brenda Vengelo said Tuesday on CNBC’s “Closing Bell: Overtime.” on digital advertising.
Shares of other big tech companies fell in after-hours trading on the back of the report. Meta Platforms shares are down 4.1% and Amazon shares are down 2%.
Meanwhile, Microsoft stock fell about 6% after that The tech giant reports weaker-than-expected cloud revenue In its latest quarterly results, though, it beat earnings and revenue estimates. The company also issued guidance on current quarter revenue that did not live up to expectations.
Earnings season continues on Wednesday, and Boeing, Kraft Heinz and Meta are scheduled to announce.
Traders are also watching the latest economic data on weekly mortgage orders, wholesale inventories and new home sales.
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