Stock futures pointed mostly higher Thursday on optimism over trade deals and as investors parsed quarterly earnings reports from Tesla, Alphabet, and IBM.
These stocks were poised to make moves Thursday:
Tesla was falling 6.2% after reporting a 16% decline in net income on a 12% drop in revenue to $22.5 billion. Revenue from Tesla’s automotive business fell 16%, while revenue at its energy business declined 7%. Tesla CEO Elon Musk, on a conference call following the earnings report’s release, said production had begun on a less expensive EV and that sales could start in the fourth quarter. He also discussed plans for Tesla to “greatly expand” its robo-taxi service, saying the service should cover about “half the U.S. population” by the end of the year.
Second-quarter earnings at Alphabet topped analysts’ estimates and shares of the parent of Google were rising 3.3% in premarket trading. Alphabet reported earnings of $2.31 a share on revenue of $96.43 billion versus consensus that called for earnings of $2.19 a share on revenue of $93.99 billion. Cloud revenue in the period jumped to $13.62 billion from $10.35 billion a year earlier. Alphabet said it was raising its capital-expenditure plans for the year, targeting $85 billion, up from a previous call for $75 billion. Chief Executive Sundar Pichai attributed the move to the “strong and growing demand for our cloud products and services.”
IBM fell 5.4% after the technology giant reportedadjusted earnings in the second quarterof $2.80 a share, topping analysts’ expectations of $2.65. Revenue of $17 billion beat expectations of $16.6 billion. IBM said it expects at least 5% revenue growth in constant currency in 2025, and now expects to generate more than $13.5 billion in free cash flow. In April, IBM said it expected to generateabout$13.5 billion in free cash flow. Coming into the report, IBM shares had risen 28% this year.
T-Mobile US was up 5.6% after the telecommunications company reportedbetter-than-expected second-quarter earnings and revenueand raised guidance for postpaid net customer additions. For the year,T-Mobilesaid it now expects postpaid net customer additions of between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.
Enterprise-software company ServiceNow reported better-than-expected second-quarter adjusted earnings and revenue and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remained strong. The stock was rising 7.2%.
Southwest Airlines was down 1.2% after the carrier posted adjusted earnings in the second quarter of 43 cents a share, below analysts’ forecasts of 51 cents, on revenue of $7.24 billion that also came up short. But Southwest said recent industry demand “shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year.”
Chipotle Mexican Grill , the burrito chain, was falling 10.4% after posting second-quarter profit and revenue that both met analysts’ expectations but same-store sales for existing restaurants that declined 4% from a year earlier. For 2025, Chipotle expects comparable sales flat with 2o24.
American Eagle Outfitters surged 13.8% after unveiling a new denim campaign with Sydney Sweeney, as the apparel retailer bets on the "Euphoria" and "The White Lotus" actress to reignite sales and reconnect with Gen Z shoppers.
Las Vegas Sands earned an adjusted 79 cents a share in the second quarter, beating analysts’ estimates of 53 cents. Revenue of $3.18 billion topped consensus of $2.84 billion. The casino company was up 6%.
Earnings reports are expected Thursday from Intel,Honeywell, Union Pacific, Blackstone, Newmont, L3Harris Technologies, American Airlines, and VeriSign.