5 Things to Know Before the Stock Market Opens on Wednesday

• Alphabet is expected to report a 20% revenue increase year-over-year, setting benchmarks for cloud computing rivals Microsoft and Amazon reporting next week
• Supermicro stock jumped over 15% premarket after raising adjusted gross margin guidance to 15-17% from previous 8.2-8.4% range, despite revenue at the low end of its $11-12.5 billion guidance
• AT&T shares rose more than 4% on better-than-expected Q2 profit, while GE Vernova fell 7% despite raising full-year guidance after missing quarterly earnings expectations

Market Summary: Wednesday Pre-Market Analysis

Market Overview:

Stock futures opened lower Wednesday as investors await major Big Tech earnings reports. Nasdaq futures declined 1%, S&P 500 futures fell 0.4%, and Dow futures dropped 0.3%. This follows Tuesday's positive session where major indexes snapped a three-day losing streak on strong chip and memory stock performance.

Key Earnings Reports:

Big Tech earnings season begins today with Alphabet (GOOGL) and Tesla (TSLA) reporting after the bell. Alphabet is expected to show a 20% year-over-year revenue increase, providing crucial insights for cloud computing rivals Microsoft and Amazon, which report next week. Tesla continues its strategic shift toward AI initiatives including autonomous vehicles and humanoid robots. IBM and Texas Instruments also report today.

Morning reports showed AT&T stock up 4% after beating Q2 profit expectations, while GE Vernova fell 7% despite raising full-year guidance due to below-expectation quarterly earnings. Philip Morris declined 1%, and CME Group gained 1%.

Supermicro Surge:

Supermicro (SMCI) jumped 15% in premarket trading after announcing adjusted profitability of 15-17% for Q4 (ended June 30), significantly above previous guidance of 8.2-8.4%. Revenue is projected at the low end of the $11-12.5 billion range, though order backlog surged. Full earnings release scheduled for August 11.

Commodities & Rates:

WTI crude oil climbed over 4% to $88/barrel (six-week high) amid ongoing Iran conflict. Gold futures rose 1% to $4,130/ounce. Bitcoin held steady at $64,300. The 10-year Treasury yield reached 4.64%, its highest level in two months, impacting consumer loan rates.