World Street | Wall Street sees worst losses in 2 years, US home sales slump, and more

World Street offers sneak peak into top global news

Exploring recent global developments, we find the US markets facing their steepest losses since 2022, along with quarterly reports from Ford Motor, Alphabet, Chipotle Mexican Grill, and others. Here's an in-depth analysis on our World Street's July 25 edition.

Wall Street sees worst declines in 2 years

A market wipeout overnight led US stock indexes to their worst losses since 2022, as disappointing profit reports from Tesla and Alphabet dampened Wall Street's enthusiasm for artificial intelligence technology. The S&P 500 fell 2.3 percent, marking its fifth decline in six days. The Dow Jones dropped 504 points, or 1.2 percent, while the NASDAQ composite slid 3.6 percent.

Ford Motor in slow lane

Ford Motor fell short of Wall Street's second-quarter earnings expectations but exceeded revenue forecasts, largely due to ongoing warranty costs. Despite increasing its full-year target for free cash flow, the automaker kept its 2024 earnings guidance unchanged, which disappointed some investors anticipating an upward revision. Ford's annual guidance includes adjusted earnings before interest and taxes (EBIT) between $10 billion and $12 billion. As a result, the company's shares dropped about 11 percent overnight.

IT outage trouble

CrowdStrike has pledged to enhance its software testing procedures following a faulty content update for Windows systems that caused a global IT outage on July 19. The cybersecurity company's error led to significant disruptions for banks, hospitals, and airlines, as millions of PCs experienced "blue screens of death."

Big Tech earnings begins!

Google parent Alphabet kicked off Big Tech’s earnings season on July 23, providing Wall Street with an initial glimpse into digital ad and cloud spending for the quarter. The company reported better-than-expected earnings and revenue, driven by strong Search ad performance and ongoing cloud growth. However, it fell short in YouTube ad sales.

What's sizzling?

Chipotle Mexican Grill reported quarterly earnings and revenue that exceeded analysts' expectations, driven by increased traffic at its restaurants despite an industry slowdown. The company reaffirmed its full-year outlook, projecting same-store sales growth in the mid- to high-single-digit percentage range. Additionally, Chipotle expects to open between 285 and 315 new restaurants this year.

US house demand depressed

US existing home sales fell more than expected in June, despite the median house price reaching a new record high. However, improving supply and declining mortgage rates offer hope for a rebound in activity in the coming months. Home sales dropped 5.4 percent last month to a seasonally adjusted annual rate of 3.89 million units, the lowest level since December.

(with inputs from Reuters and other agencies)