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2 Hours Ago
Government shutdown looms as Republican speaker search continues
Michael Townsend, managing director of legislative and regulatory affairs at Charles Schwab, said Tuesday that he wouldn’t be surprised if the U.S. federal government shuts down next month, but that Wall Street would likely shrug it off like it has in prior years.
“I’m not really worried about how the market will react if we do have a shutdown,” Townsend said at Schwab’s Impact conference in Philadelphia.
Townsend’s comments came shortly after Rep. Tom Emmer of Minnesota dropped his bid for Speaker of the House. The continued failure to find a Speaker means that Rep. Patrick McHenry of North Carolina could end up getting some temporary powers in order to help Congress operate, Townsend said.
The Schwab expert also said that the federal deficit is becoming a bigger factor in markets due to higher interest rates but that there is not urgency in Washington to address the budget shortfall in a significant way.
“The changes in spending that even Republicans are talking about are tiny drops in the bucket compared to these big issues,” Townsend said.
— Jesse Pound
2 Hours Ago
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading.
Microsoft — Shares jumped 2.5% after the maker of Windows software and Xbox video games reported fiscal first-quarter results that topped analysts’ estimates. Microsoft posted earnings per share of $2.99 on $56.52 billion in revenue. Meanwhile, analysts had forecast EPS of $2.65 on $54.50 billion in revenue, according to LSEG, formerly known as Refinitiv. Microsoft’s profit jumped due to slower operating expense growth, as well as better-than-expected revenue from its Azure cloud segment.
Alphabet — The Google and YouTube parent fell more than 6% despite beating analysts’ estimates on both top and bottom lines in the third quarter. Revenue growth reaccelerated to 11% from the previous quarter, the first time revenue reached double digits in four quarters. However, revenue from Google Cloud came in at $8.41 billion, well below consensus estimates of $8.64 billion, according to StreetAccount.
Snap — Snapchat’s parent inched higher after its third-quarter results. Snap posted earnings of 2 cents per share on revenue of $1.19 billion. Analysts polled by LSEG had estimated a loss of 4 cents per share on revenue of $1.11 billion. CEO Evan Spiegel highlighted a return to sales growth during the quarter. Shares had initially surged as high as 20% in postmarket trading, before reversing gains as investors processed news that some advertisers had paused spending after the onset of the Israel-Hamas war.
The full list can be found here.
— Hakyung Kim
3 Hours Ago
Stock futures open little changed Tuesday
U.S. stock futures made just slight moves Tuesday night.
Futures tied to the Dow Jones Industrial Average added 40 points, or 0.1%.
Meanwhile, S&P 500 and Nasdaq 100 futures ticked down 0.1% and 0.2%, respectively.
— Hakyung Kim
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