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Stock index futures pointed lower on Thursday as investors assessed quarterly earnings from Tesla (TSLA) and Alphabet (GOOG) (GOOGL).
Here are the five news items investors should watch:
Alphabet's AI spending hits cash flow: Alphabet (GOOG) (GOOGL) reported negative free cash flow of $5.9 billion in the second quarter for the first time since going public after sharply increasing spending on AI infrastructure and data centers. The results underscored the growing financial cost of the company's artificial intelligence investments despite another strong quarter.
Intel, AMD discuss longer-term China supply deals: Intel (INTC) and Advanced Micro Devices (AMD) are negotiating longer-term processor supply agreements with Chinese server customers as AI-driven demand pushes up prices, Reuters reported, citing people familiar with the talks. The agreements would lock in purchase volumes, with some discussions covering commitments of two years or longer.
IBM gains after earnings release: IBM (IBM) shares rose about 2% in extended trading after reporting second-quarter results, suggesting investors had largely priced in the earnings miss following last week's preliminary results. The company posted revenue and adjusted earnings below Wall Street estimates.
ServiceNow CEO dismisses AI competition concerns: ServiceNow (NOW) CEO Bill McDermott said rapid artificial intelligence adoption is strengthening the company's competitive position, brushing aside concerns that increased AI competition could pressure margins or shorten contract durations.
KKR plans gradual exit from Taiwan chemicals investment: Private equity firm KKR (KKR) plans gradually to sell its stake in Taiwan's LCY Group, Bloomberg reported, citing the company's chairman. The move could help the specialty chemicals maker accelerate expansion of its semiconductor materials business, which supplies customers including Taiwan Semiconductor (TSM) and Intel (INTC).
