U.S. stocks eye earnings-driven moves in telecom, housing, tech and semiconductors

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Stocks eye earnings-driven moves

Highlights

AT&T and PulteGroup, each down double-digits from recent highs, report earnings pre-market Wednesday, while Alphabet and Tesla follow after the bell.
VanEck Semiconductor ETF (SMH) surged 4.5% Tuesday, up 5% over two days, but remains 13% below its June 22 high as sector volatility persists.
Major chip stocks like Teradyne and Micron rose 12% in the session yet remain over 20% off their 2024 peaks, highlighting ongoing momentum reversals.

Earnings calendar shapes the next session

As reported by CNBC, traders are watching several high-profile earnings releases that could set the tone for the next session, with AT&T and PulteGroup due during the early morning “Squawk Box” slot and Alphabet and Tesla scheduled to report after the bell.

AT&T is down 14% over three months and remains 25% below its September high. PulteGroup is down 3% over the same period and sits 14% below its Feb. 17 high, leaving both stocks under pressure heading into their updates.

Alphabet is up 4.5% over three months but remains 15% below its May 18 high. StockStory says the shares trade at 27.3 times forward earnings, adding that the valuation implies elevated expectations over the next six to twelve months, while pointing to Google Search as a major driver of long-term revenue growth and operating margins.

Tesla is down about 2% over three months, 24% from the high reached last December, and around 16% year to date. StockStory says there are better opportunities than Tesla and argues that the stock’s forward earnings multiple looks expensive relative to the company’s fundamentals.

Semiconductor rebound highlights positioning risks

The VanEck Semiconductor ETF, SMH, rises 4.5% on Tuesday and gains about 5% over two days, even though it remains 13% below its June 22 high. Teradyne and Micron are among the session’s biggest winners, each jumping 12%, though both are still down 22% from their peaks.

Jim Cramer of “Mad Money” says sharp rallies in semiconductor shares can offer investors a chance to reposition, while also warning against excessive concentration in the group. The caution comes despite strong longer-term performance, with SMH up more than 100% over one year, 10 of its 25 holdings up more than 140%, and 16 of 25 up more than 50%.

The broader chip complex also posts strong gains on Tuesday, including Sandisk, Micron, Intel, AMD, Marvell, Dell and Broadcom. Even after that rebound, Sandisk remains down 32% from its June high, Intel is off 26% from its June 30 high, Marvell is down 36% from its June 18 high, and Broadcom is 22% below its June 3 high, underscoring how quickly momentum has reversed across the sector.

In our earlier article on Micron Technology (MU)’s surge, we noted that the stock jumped sharply after a major earnings-driven breakout, supported by strong revenue growth, expanding margins, and long-term customer agreements that improved visibility for DRAM, NAND, and HBM demand. We also highlighted that while the trend looked decisively bullish, momentum indicators were stretched, making a short-term consolidation or volatility swing likely as traders watched key support and resistance levels.

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