The three major U.S. equity indexes closed lower on Tuesday. The Dow Jones industrials slipped 0.18% while the S&P 500 lost 0.42% and the Nasdaq fell by 1.15%. Seven of 11 sectors ended the day lower, led by consumer cyclicals (1.6%), technology (1.0%) and communications services (1.0%).
This latest report on the consumer price index (CPI) for July came in better than expected, remaining flat month over month rather than rising by 0.2%. Core CPI rose 0.3%, versus an estimate for a rise of 0.7%. The headline increase was 8.5%, compared to an estimate of 8.7%, and July’s year-over-year rise of 9.1%. In Wednesday’s premarket trading, all three major indexes traded higher, thanks to the positive message delivered by the CPI report.
After markets closed Tuesday, Coinbase missed consensus estimates on both the top and bottom lines. April was the company’s cruelest month, but the outlook may be worse. The company said in its letter to shareholders that it is “working hard to operate within the $500 million Adjusted EBITDA loss guardrail” it had previously set for 2022. Shares traded up about 2.5% Wednesday morning following the CPI report.
Array Technologies reported better-than-expected results. Revenue doubled year over year, and the company affirmed previous fiscal year earnings per share (EPS) and revenue guidance. The stock traded up by about 14% in Wednesday’s premarket.
Roblox missed the consensus EPS estimate but beat the revenue forecast. Bookings slipped 4% year over year. The stock traded down about 8%.
Trade Desk met its EPS consensus and beat on revenue. The company also issued upside guidance for the current quarter. The stock traded up more than 20%.
Unity Software posted a smaller than expected loss but missed the revenue estimate and issued downside guidance for the current quarter and the full fiscal year. Shares traded up about 3% in Wednesday’s premarket.
After markets close on Wednesday, AppLovin, Bakkt, Disney and Paysafe are on deck to report quarterly earnings.
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