THE MORNING MOMENTUM Thursday, July 23, 2026
🌅 PRE-MARKET SNAPSHOT (as of ~8:45am ET)
A real, confirmed pullback in Big Tech after Wednesday's Alphabet and Tesla earnings — worse than initial headlines suggested.
Index | Change |
|---|---|
SPY | −0.9% |
QQQ | −1.3% |
DIA | −0.9% |
IWM | −1.0% |
📰 WHAT YOU NEED TO KNOW
Alphabet and Tesla are both down sharply, confirmed by real options flow — more than early headlines suggested. Alphabet is down ~5.2% (2.4x normal options volume), and Tesla is down ~7.6% (2.2x normal options volume). These are two very different stories wearing the same red arrow:
Tesla had a genuinely bad quarter. Revenue fell 12% year-over-year — the biggest decline in a decade — and the company posted its first negative free cash flow quarter in more than two years as operating costs surged. Elon Musk defended the spending on the call: "This is a massive capex year. I'm confident that all the things that we're investing in will yield incredible returns... maybe the best capex returns that we've ever seen."
Alphabet beat estimates but is being punished for spending. Cloud revenue surged 82% and both revenue and earnings topped forecasts, but the company raised planned capital expenditure to as much as $205 billion this year — a similar "great quarter, sold off on spending" pattern to what we saw with TSMC last week.
Oil is still elevated, with Brent having topped $98 a barrel overnight before easing slightly — continuing to escalate from earlier in the week and reviving inflation concerns.
Intel reports tonight after the close — the last of this week's big chip-adjacent earnings. The stock is down 27% this month despite a 178% gain in the first half of the year (its best year since 1983). It's trading only modestly lower today (~-0.4%) ahead of the report.
A few names are showing real confirmed strength today: ServiceNow is up ~4.9% (4.1x normal options volume) following its own earnings, and CSX is up ~4.1% (2.6x normal options volume) — both genuine bright spots in an otherwise red morning.
🎯 MOMENTUM PLAYS TO WATCH — Confirmed by Options Flow
TSLA — Down ~7.6% on 2.2x normal options volume — the clearest, most consequential confirmed move of the morning.
GOOGL — Down ~5.2% on 2.4x normal options volume — a strong quarter overshadowed by capex concerns.
NOW — Up ~4.9% on 4.1x normal options volume — the highest relative options activity of any name today.
CSX — Up ~4.1% on 2.6x normal options volume — a genuine bright spot today.
🎲 GUESS THE CHART
This chipmaker is up 178% year-to-date — its best year on record since 1983 — yet has fallen 27% just this month, and reports Q2 earnings tonight with a 15% implied post-earnings move priced in. Which ticker?
(Answer: Scroll back up if you want a hint.)
📅 TODAY'S CALENDAR
ECB rate decision. Intel reports after the close. Earnings from RTX, T-Mobile, Thermo Fisher, Union Pacific, Blackstone, Lockheed Martin, Freeport-McMoRan, Comcast, Honeywell, SAP, and Newmont.
⚡ TRADER'S NOTE
Tesla and Alphabet are two very different stories wearing the same headline: both stocks are down premarket, but Tesla's decline reflects an actually weak quarter, while Alphabet's reflects a strong quarter the market is choosing to punish for spending too much. Worth keeping those apart rather than lumping "Big Tech earnings disappointed" into one story.
⚠️ DISCLAIMER
This newsletter is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Always do your own research and consult a licensed financial advisor before making investment decisions.