S&P 500, Nasdaq Hit New Highs, Dow Drops as Investors React to Slew of Earnings; Tesla Plunges, Alphabet Rises After Results

How Much Traders Expect Intel to Move After Earnings

14 minutes ago

Intel (INTC) is scheduled to report earnings after the closing bell today, with traders anticipating a sizable move from the struggling chipmaker’s stock.

Options pricing suggests traders expect Intel’s stock could move more than 7% from its recent level by the end of Friday’s trading session.

Intel’s stock has registered an average post-earnings move of 11% over the past four quarters, falling in three of those instances. In April, shares fell 7% the day after earnings as the chipmaker issued a quarterly forecast below analysts’ expectations. 

Heading into Thursday’s report, all 11 brokers covering Intel tracked by Visible Alpha have a neutral rating for the stock, with an average price target near $23. 

Analysts on average expect Intel’s quarterly revenue and profits to have declined year-over-year, with attention squarely on how new CEO Lip-Bu Tan will manage—or sell off—the chipmaker’s struggling foundry business. Tan is reportedly considering changing what manufacturing process the foundry business focuses on, a move that would cost the company hundreds of millions or even billions of dollars, but could help win major customers like Nvidia (NVDA) and Apple (AAPL).

Intel’s stock had added about 14% in 2025 so far, but has still lost more than one-quarter of its value from this time last year. 

–Andrew Kessel

American Airlines Stock Drops as Outlook Disappoints

1 hr 40 min ago

American Airlines (AAL) shares tumbled Thursday after the carrier’s restored earnings projection for 2025 lagged its earlier forecasts and Wall Street analyst estimates.

Shares in the Fort Worth, Texas-based air carrier were down 9% in afternoon trading and have now lost about a third of their value so far this year. Tariffs and economic uncertainty have weighed on consumer appetite for domestic travel in recent months, affecting the outlook for airlines, although international travel has held up.

American said Thursday it expects a 2025 adjusted per-share loss of as much as 20 cents or earnings per share (EPS) of as much as 80 cents, with the midpoint lagging the Visible Alpha analyst EPS forecast of 71 cents.

The forecast was also well below the company’s projection in January of adjusted EPS of between $1.70 and $2.70 for the full year. Like rivals Delta Air Lines (DAL) and Southwest Airlines (LUV), American had withdrawn its 2025 guidance in April citing an uncertain outlook amid tariffs. Delta and Southwest both restored their guidance for the year this month. 

American’s third-quarter earnings projections also disappointed. The carrier forecast an adjusted third-quarter per share loss of between 10 cents and 60 cents, well below analysts’ estimates.

American posted second-quarter results Thursday that were better than expectations. It reported adjusted EPS of $0.95 on record operating revenue of $14.39 billion. Analysts polled by Visible Alpha had expected an adjusted EPS of $0.79 on revenue of $14.30 billion.

–Nisha Gopalan

IBM Stock Slides on Weak Software Sales

3 hr 3 min ago

IBM (IBM) shares sank in intraday trading Thursday, as slightly weaker-than-expected software revenue growth tempered optimism about a second-quarter earnings report that largely topped estimates.

After the closing bell Wednesday, IBM said it posted revenue of $16.98 billion, up 8% year-over-year, along with adjusted earnings per share of $2.80, each better than estimates compiled by Visible Alpha. IBM’s software revenue, however, came in at $7.39 billion, narrowly below the $7.43 billion analyst consensus.

Shares were down more than 8% in recent trading to around $258, leading decliners in the Dow Jones Industrial Average. With Thursday’s move, the stock’s year-to-date gain has been trimmed to 18%.

UBS analysts noted that IBM’s organic software revenue growth slowed to 5% in the quarter, compared to 6% and 8% growth, respectively, in the company’s previous two quarters. The analysts kept their “sell” rating on the stock, but lifted their price target to $200 from $195.

Bank of America analysts cut their price target to $310 from $320, while maintaining their “buy” rating, saying that they “remain bullish on overall company trajectory” even as the lackluster growth of IBM’s software segment “has turned into a show me story” for the second half of this year.

Analysts from Wedbush said they “believe that IBM is well-positioned to capitalize on the current demand shift for hybrid and AI applications with more enterprises looking to implement AI for productivity gains and drive long-term profitable growth,” and added they they “would be buyers of any knee-jerk weakness” in the stock on Thursday.

–Aaron McDade

Citi Boosts Alphabet Price Target After Earnings

4 hr 18 min ago

Some analysts turned more positive on Alphabet shares after the company’s better-than-expected results.

Citi analysts raised their price target to $225 from $203—Wall Street’s average is above $216, according to Visible Alpha—citing the company’s “improving Search monetization trends.” Investors have been concerned that Google’s search business, a core revenue generator, was under threat from the rise of AI. 

“To be clear, the broader search market continues to evolve and remains among the most competitive ever as debate on the future of Search continues,” the Citi analysts wrote.

The analysts named a list of things they said impressed them from Alphabet’s results, including consumers’ increasing adoption of Google’s large language model Gemini and the expansion of AI Mode, which integrates an AI chatbot tool into search. CEO Sundar Pichai said on the earnings call late Wednesday that AI Mode had reached 100 million monthly active users in the U.S. and India since it was launched in May.

The analysts also said they liked the company’s “faster product cycle,” accelerating revenue from cloud operations and the growing demand for its products that led to its plan to spend $85 billion on developing AI this year, up from an earlier target.

Alphabet shares were up more than 1% at around $193 in recent trading. The stock is up about 2% in 2025.

Tesla Stock Price Levels to Watch Amid Post-Earnings Slump

5 hr 6 min ago

Tesla (TSLA) shares dropped in early trading Thursday after the EV maker’s quarterly results fell short of Wall Street’s expectations.

During the company’s earnings call, the shares continued to lose ground after CEO Elon Musk warned analysts of a “few rough quarters” ahead as federal incentives for EV manufacturers dry up.  Earlier this month, President Donald Trump called for a review of subsidies awarded to Musk’s companies, including Tesla, raising concerns that the carmaker could face tougher regulatory scrutiny.

Through Wednesday’s close, Tesla shares traded 55% above their April low but had fallen 18% since the start of the year, driven down in part by a public feud between Musk and Trump over the president’s now-passed “One Big, Beautiful Bill,” which included a provision to eliminate the Biden-era $7,500 new EV tax credit.

After setting their May high, Tesla shares have consolidated within a symmetrical triangle on declining trading volume. More recently, the price encountered resistance near the pattern’s upper trendline ahead of the EV maker’s quarterly report.

Tesla shares fell below both the closely watched 50- and 200-day moving averages this morning. The stock was down nearly 8% at $306 in recent trading.

Investors should watch crucial support levels on Tesla’s chart around $292, $265 and $225, while also monitoring an overhead area near $365.

Read the full technical analysis piece here.

–Timothy Smith

Futures Point to Mixed Open for Major Indexes

6 hr 9 min ago

Futures tied to the Dow Jones Industrial Average were down 0.6%.

S&P 500 futures rose fractionally.

Nasdaq 100 futures added 0.2%.