US Stocks Drop after Companies Announce Quarterly Results

Investors are expecting further reports to gauge the impact of supply chain disruption and labour shortages on firms, so U.S. Stock index futures dipped down on Thursday after IBM and Tesla dropped following their quarterly results. Tesla Inc dropped 1% in premarket trade on Wednesday after the company warned its future plants and supply-chain challenges will put pressure on profits after beating Wall Street sales estimates for the third quarter.

The EV maker’s quarterly report comes a day after growing peer Netflix Inc’s Stock dropped after its earnings. On Thursday, other large-cap companies such as Facebook Inc, Apple Inc, and Amazon.com Inc dropped between 0.1 and 0.3%. IBM’s Stock dropped 4.7% after the company missed quarterly revenue forecasts due to a drop in orders in its managed infrastructure division.

Investors are closely monitoring the growth prospects of firms dealing with rising prices, labour shortages, and supply chain disruptions, with analysts forecasting a 33% increase in profit for S&P 500 companies from a year ago, according to Refinitiv data. On Wednesday, the Dow Jones Industrial Average set an intraday record high, closing within five points of its early September peak.

The Dow Jones Industrials Average hit an intraday record high on Wednesday and the benchmark index came within five points of its early September record.AT&T Inc rose 1% after the telecom operator’s quarterly revenue and monthly phone bill paying subscriber additions beat market expectations. Dow Inc gained 1.1% after it posted a more than a five-fold jump in third-quarter profit as economic recovery boosted prices for chemicals