Tesla, Apple, AMD, General Electric, Lucid: 5 things to know

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Here are five things you need to know for Tuesday, July 27:

1. – Futures contracts outstrip technology profits

Stock futures fell on Tuesday as the earnings season shifts to another gear with reports from mega-cap tech companies and investors await the prospect of a stimulus from the Federal Reserve.

Stocks were also disrupted by the third straight session of massive sales in China amid Beijing’s crackdown on tech and education companies.

Dow Jones Industrial Average contracts fell 95 points, S&P 500 futures fell 8 points, and Nasdaq futures fell 8 points.

The yield on the benchmark 10-year Treasury index slipped to 1.266% on Tuesday as investors waited for the Fed’s policy update. The two-day central bank meeting begins Tuesday and ends Wednesday with a statement followed by a press conference by Fed Chairman Jerome Powell.

“We expect Jay Powell to reiterate that the reduction discussion is ongoing, but that it is too early to reveal a specific date on which the initial reduction in asset purchases will begin,” said Danielle DiMartino Booth , CEO and Chief Strategist of Quill Intelligence. “Because home prices have risen at a staggering double-digit rate for 13 consecutive months, there is a risk of dissent at the (Federal Open Market Committee) at this week’s meeting.”

Shares ended higher on Monday and the three major exchanges closed at record highs Monday as Wall Street braced for a big week of earnings. Apple (AAPL) – Get a report and alphabet (GOOGL) – Get a report, the parent company of Google, will release its results after Tuesday’s closing bell.

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2. – Tesla rises after quarterly profit surpasses $ 1 billion

You’re here (TSLA) – Get a report shares rose more than 2% in pre-market trading on Tuesday after the electric vehicle company reported second-quarter profits topping analysts’ estimates and net profit exceeding $ 1 billion.

Adjusted earnings for the quarter were $ 1.45 per share, well ahead of Wall Street’s estimate of 98 cents. Tesla has reported profit for eight consecutive quarters.

Tesla’s second-quarter revenue rose 98% from a year ago to a record high of $ 11.96 billion, significantly ahead of analysts’ forecast of $ 11.3 billion. Automotive gross margins were 28.4%.

Tesla CEO Elon Musk warned on a call to investors that the global semiconductor shortage remains “quite severe” and could impact production rates in the second half of the year. He added that volume growth will depend on the availability of other elements of the global supply chain.

“The global chip shortage situation remains quite serious,” Musk said on the call. “Looks like it’s improving, but it’s hard to predict.

Musk also said on Monday that he would no longer participate in regular income calls unless he “has something really important to say.”

Tesla was up 2.31% to $ 672.80 in pre-market trading on Tuesday.

3. – Tuesday calendar: Apple, Alphabet, Microsoft and AMD Earnings

Apple earnings reports due Tuesday (AAPL) – Get a report, Microsoft (MSFT) – Get a report, Alphabet (GOOGL) – Get a report, Visa (V) – Get a report, Starbucks (SBUX) – Get a report, 3M (MMM) – Get a report and advanced micro-devices (AMD) – Get a report.

General Electric (TO GIVE) – Get a report reported second-quarter adjusted earnings of 5 cents per share, 2 cents more than analysts’ estimates.

United Parcel Service (UPS) – Get a report second quarter earnings and revenues beat analysts’ expectations.

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Microsoft, Facebook, Alphabet: Ranking mega-cap tech stocks ahead of earnings

Apple, Advanced Micro Devices, Alphabet, Microsoft and United Parcel Service are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the shares? Find out more now.

The U.S. Economic Calendar: Durable Goods Orders for Tuesday for June at 8:30 a.m. ET, the Case-Shiller Home Price Index for May at 9 a.m. and Consumer Confidence for July at 10 a.m.

The two-day Federal Reserve meeting begins Tuesday, with a policy statement to be released Wednesday afternoon.

4. – Intel unveils its plan to catch rivals TSMC and Samsung

Intelligence (INTC) – Get a report traded lower on Tuesday morning after the world’s largest semiconductor company unveiled a plan to catch rivals Taiwan Semiconductor Manufacturing (TSM) – Get a report and Samsung Electronics by 2025.

“Building on Intel’s undisputed leadership in advanced packaging, we are accelerating our innovation roadmap to ensure we are on track to become the leader in process performance here. 2025, ”Intel CEO Pat Gelsinger said at the“ Intel Accelerated ”event on Monday. “We are leveraging our unprecedented innovation pipeline to deliver technological advancements from the transistor down to the system level. Until the periodic table is exhausted, we will relentlessly pursue Moore’s Law and our path to innovate with silicon magic.

The company announced that it will start building chips for Qualcomm (QCOM) – Get a report using 20A process technology. Qualcomm, the largest smartphone chip maker, has used Taiwan Semi and Samsung in the past to build
his products.

Intel also said that Amazon.com (AMZN) – Get a report AWS’s cloud computing unit will use the chipmaker to package its internal processors.

Intel shares fell 1.97% to $ 53.24 in pre-market trading.

5. – Lucid Motors falls after a solid start

Lucid Motors actions (LCID) – Get a report were down in pre-market trade after the start of electric vehicles climbed nearly 11% when they first started trading.

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