Markets slide as disappointing earnings send tech lower

Dow dropped 389, decliners over advancers 2-1 & NAZ sank 433.  The MLP index was off 2+ to 294 & the REIT index stayed near 404.  Junk bond funds hardly budged in price & Treasuries had some buying which reduced yields (more below).  Oil stayed close to 77 & gold jumped 21 to 2428.

Dow Jones Industrials 

Treasury yields slipped as investors looked ahead to a fresh batch of economic data & considered the outlook for the US economy.  The yield on the benchmark 10-year Treasury note slipped 1 basis point to 4.226%, while the yield on the 2-year Treasury note was flat at 4.387%.  Yields & prices move in opposite directions & 1 point is equivalent to 0.01%.  Data released today showed that US manufacturing orders came in weaker than expected.  The US PMI flash manufacturing output index fell to 49.5 in Jul, unexpectedly slipping into contraction territory as new orders, production & inventories declined.  The forecast called for a reading of 51.5.  Another report also showed that new home sales came in lighter than expected for the month of Jun.  Later in the week, a reading of 2nd-qtr gross domestic product & Jun's personal consumption expenditures price index are expected.  The latter is the Federal Reserve's preferred inflation gauge, & could therefore inform guidance issued by the  central bank about the outlook for monetary policy when it meets next week.

10-year Treasury yield dips as investors closely monitor economic data

Tesla's (TSLA) 2nd-qtr margin missed estimates as price cuts & incentives to spur sagging demand continued to hurt the bottom line while the company intensifies its self-driving technology efforts, it said.  TSLA recorded automotive gross margin excluding regulatory credits of 14.6% in the 2nd qtr, compared with estimates of 16.3%.  It was the lowest quarterly margin in more than 5 years.  It was the lowest quarterly margin in more than 5 years.  The results were a reminder of headwinds facing the company in its main auto business, even as CEO Elon Musk reoriented the carmaker to self-driving technology.  The company reported revenue of $25.5B for the 3 months ended Jun, compared with $24.9B a year earlier.  The forecast had estimated $24.77B.  TSLA's sales of regulatory credits nearly tripled to $890M in the 2nd qtr from a year earlier.  "Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025," TSLA said.  TSLA reiterated that cost reductions for new vehicles would be less than expected.  Net income was $1.48B in the 3nd qtr, compared to $2.7B a year ago.  Adjusted EPS of 52¢ missed the estimate of 62¢.  The stock retreated 28.41 (12%).

Tesla's quarterly results miss estimates after price cuts hit bottom line

AT&T (T) exceeded market expectations for wireless subscriber additions in the 2nd qtr, as the telecom operator's higher-tier unlimited plans attracted customers.  The company added 419K monthly bill-paying wireless phone subscribers, compared with expectations of 285K additions.  AT&T's unlimited plans that are usually priced lower than those of rivals have helped the company add budget-conscious customers amid tough competition.  That has also helped AT&T retain customers better than rivals, with its postpaid phone churn, the number of people disconnecting from a company's service, coming at 0.70%, the 2nd lowest reported for a 2nd qtr.  Free cash flow, a metric that helps determine div payouts, rose more than 9% to $4.6B, beating estimates of $4.2B.  However, slower phone upgrades in the US weighed on revenue.  The stock rose 80¢.

AT&T beats estimates for subscriber additions on demand for higher-priced plans

Lackluster tech earnings stirred up worries that Big Tech's power to fuel gains is fading.  Sluggish economic data is another negative in the stock market.  Safe have gold & Treasuries are in demand today.  Earnings season could be weak time for stocks after a strong advance in the first ½.