S&P 500 futures tick lower after Microsoft and Alphabet report: Live updates

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Traders on the floor of the New York Stock Exchange.

Ted Shaffrey | AP

S&P 500 futures slipped on Tuesday night as investors digested quarterly results from tech giants Microsoft and Alphabet.

Futures tied to the S&P 500 lost 0.1%. Nasdaq 100 futures fell 0.2%. Meanwhile, Dow Jones Industrial Average futures gained 67 points, or 0.2%.

Shares of Microsoft jumped 3.7% Tuesday after the bell following stronger-than-expected results in the fiscal first quarter. Investors were particularly optimistic on the company's revenue growth, particularly from its Azure cloud segment. Meanwhile, Alphabet shares tumbled more than 6% as its cloud business missed analysts' estimates, overshadowing its revenue growth and earnings beat.

The major averages all notched gains in the main trading session on the back of several strong corporate earnings reports. The Dow added more than 200 points, or 0.6%, to break a four-day losing streak. The S&P 500 and Nasdaq Composite gained 0.7% and 0.9%, respectively.

"We're getting some mixed to positive results in aggregate from the earning season. So, I think we can get back to this Goldilocks period, where we can dream that they're going to stop raising rates, and eventually there'll be accommodation — and in the interim — growth," Trivariate Research founder and CEO Adam Parker said on CNBC's "Closing Bell" on Tuesday. "I think we'll end up the year higher based on that."

Traders will be keeping an eye on several more key quarterly reports during one of the busiest weeks of earnings season. Boeing will be posting its quarterly results Wednesday before the bell, followed by IBM and Meta in the afternoon.

During a relatively quiet week for economic data, Wall Street will look toward September's building permits and new home sales numbers for insight into the housing market.

Government shutdown looms as Republican speaker search continues

Michael Townsend, managing director of legislative and regulatory affairs at Charles Schwab, said Tuesday that he wouldn't be surprised if the U.S. federal government shuts down next month, but that Wall Street would likely shrug it off like it has in prior years.

"I'm not really worried about how the market will react if we do have a shutdown," Townsend said at Schwab's Impact conference in Philadelphia.

Townsend's comments came shortly after Rep. Tom Emmer of Minnesota dropped his bid for Speaker of the House. The continued failure to find a Speaker means that Rep. Patrick McHenry of North Carolina could end up getting some temporary powers in order to help Congress operate, Townsend said.

The Schwab expert also said that the federal deficit is becoming a bigger factor in markets due to higher interest rates but that there is not urgency in Washington to address the budget shortfall in a significant way.

"The changes in spending that even Republicans are talking about are tiny drops in the bucket compared to these big issues," Townsend said.

— Jesse Pound

Stocks making the biggest moves after hours

Check out the companies making headlines in extended trading.

Microsoft — Shares jumped 2.5% after the maker of Windows software and Xbox video games reported fiscal first-quarter results that topped analysts' estimates. Microsoft posted earnings per share of $2.99 on $56.52 billion in revenue. Meanwhile, analysts had forecast EPS of $2.65 on $54.50 billion in revenue, according to LSEG, formerly known as Refinitiv. Microsoft's profit jumped due to slower operating expense growth, as well as better-than-expected revenue from its Azure cloud segment.

Alphabet — The Google and YouTube parent fell more than 6% despite beating analysts' estimates on both top and bottom lines in the third quarter. Revenue growth reaccelerated to 11% from the previous quarter, the first time revenue reached double digits in four quarters. However, revenue from Google Cloud came in at $8.41 billion, well below consensus estimates of $8.64 billion, according to StreetAccount.

Snap — Snapchat's parent inched higher after its third-quarter results. Snap posted earnings of 2 cents per share on revenue of $1.19 billion. Analysts polled by LSEG had estimated a loss of 4 cents per share on revenue of $1.11 billion. CEO Evan Spiegel highlighted a return to sales growth during the quarter. Shares had initially surged as high as 20% in postmarket trading, before reversing gains as investors processed news that some advertisers had paused spending after the onset of the Israel-Hamas war.

The full list can be found here.

— Hakyung Kim