S&P 500, Nasdaq fall as chip stocks tumble ahead of big tech earnings

P&G hit by drop in beauty, diaper sales

54 minutes ago

Procter & Gamble (PG) shares fell Tuesday after the consumer products giant missed revenue estimates due to declining sales of its beauty products and diapers.

P&G reported fourth-quarter fiscal 2024 revenue was virtually unchanged from a year ago at $20.53 billion, while the average of analysts surveyed by Visible Alpha was $20.75 billion. Adjusted earnings per share of $1.40 were above expectations.

Sales at its beauty division fell 1% year-over-year to $3.72 billion, hurt by weaker demand for its super-premium SK-II brand and in Greater China. Sales at its baby, women and family care division fell 3% to $5.01 billion. Chief Financial Officer Andre Schulten said the company was unable to innovate with its Luvs diaper brand because of supply chain constraints.

P&G shares were down nearly 6% in early afternoon trading.

–Bill McColl

CrowdStrike leads Nasdaq stocks lower

2 hours 53 minutes ago

CrowdStrike (CRWD) shares fell sharply after a CNBC Delta Air Lines (DAL) has hired prominent attorney David Boies to seek potential damages from the cybersecurity firm as well as Microsoft following the July 19 global computer outage.

Boies, chairman of Boies Schiller Flexner, represented the U.S. government in its antitrust lawsuit against Microsoft and helped secure the right to same-sex marriage in California, CNBC note.

The outage of Microsoft’s cloud services triggered by a faulty CrowdStrike software update led to the cancellation and delay of thousands of flights worldwide, but Delta was the hardest hit of the major airlines.

CrowdStrike shares fell more than 8% in recent trading, dragging the Nasdaq lower.

–Nisha Gopalan

Arm Holdings extends decline ahead of earnings release

3 hours 21 minutes ago

Shares of chip design giant Arm Holdings (ARM) were down 4% in early trading Tuesday, after falling more than 5% the previous session following a rating downgrade from HSBC.

The company, which is due to report results on Wednesday, has seen its share price lose more than a quarter of its value since closing at a record high on July 10.

The slowdown, however, came on relatively low trading volume, indicating that stocks may be in for a pullback rather than a long-term reversal.

Read our full technical analysis here.

–Timothy Smith

Stock futures contracts

4 hours 47 minutes ago

Futures contracts tied to the Dow Jones Industrial Average fell 0.1%.

S&P 500 futures rose 0.2%.

Nasdaq 100 futures rose 0.3%