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U.S. equities sank at midday Wednesday as tech stocks tumbled in the wake of disappointing earnings reports. The S&P 500 lost 1.7%, and the Nasdaq sank 2.8%, while the Dow dropped close to 1%.

Tesla (TSLA) shares plunged after the electric vehicle maker missed earnings estimates as it cut prices to boost sales.

Shares of Google parent Alphabet (GOOGL) also lost ground amid concerns about the tech giant's spending on artificial intelligence (AI) investments, despite an earnings beat.

Visa (V) shares slid after the credit card provider’s revenue came in short of forecasts amid a pullback in consumer spending.

AT&T (T) shares advanced after the telecom giant reported postpaid phone net additions and free cash flow that were better than anticipated.

Shares of Enphase Energy (ENPH) jumped as the solar power equipment manufacturer posted strong operating profit on a recovery in sales in the U.S.

Seagate Technology (STX) shares gained as the hard disk drive maker beat estimates for its profit, sales, and outlook on increasing cloud demand.

Oil and gold futures rose. The yield on the 10-year Treasury note was down. The U.S. dollar lost ground to the euro, pound, and yen. Prices for most major cryptocurrencies were mixed.

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Despite signs of a slowdown in recent weeks, economic growth likely remained stable through the end of the second quarter.

Economists surveyed by and anticipate gross domestic product (GDP) grew to an annualized 2.1% in the second quarter. The closely watched data will be released from the Bureau of Economic Analysis on Thursday.

If estimates hold true, that would be higher than the first quarter but still subdued from the second half of last year.

"It would also be consistent with an economy expanding at a pace modestly below its estimated potential and consistent with the disinflation observed in the first half of 2024," wrote Moody's Analytics Economist Matt Colyar.

Economic activity has moderated and inflation has declined as the Federal Reserve has kept its benchmark lending rate at a 23-year high for the past year. Expectations have grown that the Fed will soon start cutting the fed funds rate, but officials at the central bank say they are watching economic data for more evidence that inflation is clearly headed toward the Fed's 2% annual target.

A few corners of the economy are giving GDP a lift.

Inventory levels, which economists say are notoriously volatile and difficult to predict, likely boosted the second quarter's measure of economic growth. Several economists updated their estimates for GDP after Wednesday's report showed growing accumulation. Durable goods orders, such as heavy equipment for business, also showed signs of growth during that time.

However, no sector has been as influential on the economy's growth in the past few years as consumers' spending—and the second quarter will be no different, economists said.

Consumers have continued to spend despite inflationary price pressures and elevated costs of borrowing—helping the economy avoid a recession that many thought would happen last year. Economists so far this year have thought consumers would falter as pandemic-era savings ran out.

However, the second quarter was better than anticipated, culminating in a surprising June report that showed little change despite economists' expectations that spending would decline.

"Consumer spending is nowhere near a freefall," wrote Wells Fargo economists.

Consumers still have significant trends working in their favor, said Scott Anderson, chief U.S. economist at BMO.

"Among the most important tailwinds in our view are record-high household wealth, rising real disposable income, and still historically low levels of unemployment," Anderson wrote. "We could even see the drag of higher interest rates begin to fade over time, setting the economy up for a growth revival and a more tolerable inflation rate in 2025."

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Tesla (TSLA) shares are plunging in premarket trading after the electric vehicle (EV) maker posted a quarterly earnings slump and confirmed the delay of its much-anticipated robotaxi launch to October; Alphabet (GOOGL) shares are falling after the Google parent posted slowing advertising growth even as its strength in the cloud led to a second-quarter earnings beat; LVMH’s (LVMUY) below-forecast results showed that weaker Chinese and overall consumer spending is hurting even the world's largest luxury brand; Chipotle Mexican Grill (CMG) is expected to show second-quarter profit and sales gains when the burrito chain reports earnings after the bell; and Thermo Fisher Scientific (TMO) shares are slipping despite an earnings beat and guidance raise. U.S. stock futures are falling as investor disappointment with tech giants Tesla and Alphabet weighs on investors after all three major indexes closed lower yesterday. Here's what investors need to know today.

Tesla (TSLA) shares are plunging 8% in premarket trading after the electric vehicle maker posted a 45% drop in second-quarter profit as demand for EV cools and the average selling price of its vehicles decline. Also weighing on the results of Magnificent Seven tech giant was its warning of a rise in artificial intelligence (AI) costs and Chief Executive Officer (CEO) Elon Musk’s confirmation that the planned date for its highly anticipated robotaxi event had been delayed to October 10 from August 8. 

Alphabet (GOOGL) shares are falling 3% in premarket trading after the Google parent posted slowing advertising growth even as it reported second-quarter results that beat analysts' expectations on the back of strength in its cloud services and core search business. Ad sales, a key revenue driver at Google, rose 11.1% from last year, but that was down from the 13% year-over-year jump it registered in the first quarter. Alphabet Chief Financial Officer (CFO) Ruth Porat also told investors that depreciation and higher expenses from AI investments could affect operating margins in the third quarter.

LVMH’s (LVMUY) second-quarter results, with tepid sales disappointing investors, showed that the pullback by consumers on high-end items and cooling Chinese spending is affecting even the world’s largest luxury firm. The company, whose brands include Dior and Louis Vuitton, reported Q2 year-over-year organic revenue growth of just 1% to 20.98 billion euros. Sales in Asia excluding Japan plunged 14%, although Chinese spending growth in Japan and Europe was "strong." LVMH shares fell 4% in French trading, while trench coat maker Burberry (BURBY), Gucci owner Kering (PPRUY), and Cartier owner Richemont (CFRUY) were all lower in European trading. 

Chipotle Mexican Grill (CMG) is expected to show second-quarter profit and sales gains when the burrito chain reports earnings after the bell. The results are its first since its 50-for-1 stock split last month. Analysts expect Chipotle's revenue to rise 17% year-over-year, with profits projected to jump about 28%, according to estimates compiled by Visible Alpha. While the results are expected to show the company’s resilience as its rivals suffer from the inflation-fueled downturn in consumer spending, Baird analysts noted that some indicators show demand "softening" earlier this month. Chipotle shares are little changed in premarket trading.

Shares of Thermo Fisher Scientific (TMO) are edging lower in premarket trading even after the medical device maker posted higher-than-forecast results and upped both its full-year revenue and earnings outlook. Its second-quarter revenue slipped 1% from last year to $10.54 billion, while adjusted earnings per share (EPS) was $5.37, with both beating analysts’ consensus estimates compiled by Visible Alpha. Thermo Fisher raised its full-year adjusted EPS guidance to $21.29 to $22.07 from the prior range of $21.14 to $22.02. "We have made very good progress through the halfway point of the year and are in a great position to deliver differentiated performance in 2024," CEO Marc Casper said.

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Your flights will likely be cheaper for the rest of the summer as airlines offer discounted tickets in an attempt to fill seats.

While demand has hit record highs in recent weeks, airlines that have already reported results for the most recent fiscal quarter said carriers overshot the number of flights and seats available this summer. Because of that oversupply, airlines are discounting tickets to try to fill seats.

Air travel broke records last summer, as people continued to catch up on travel they missed during the shutdowns of the pandemic. Airlines expected more of the same this year, and planned their capacity accordingly.

"Looking forward, we see multiple airlines have begun to cancel loss-making capacity," United Airlines (UAL) CEO Scott Kirby said in a press release. "United has long been preparing for the moment when industry-wide domestic capacity would adjust—it's now clear that inflection point is just 30 days away."

You could fly for cheap during the remainder of the summer as companies try to match their supply with demand.

Prices have already fallen so far this summer. Airfare prices fell from their May levels last month, down 5.7%, according to the most recent release of the Consumer Price Index. Year-over-year, prices were down 5.1%.

Consumers will get a look at how widespread of a phenomenon this may be this week when American Airlines (AAL) and Southwest (LUV) release their second-quarter earnings reports.

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Southwest Airlines (LUV) is facing a safety review from the Federal Aviation Administration, the company confirmed Tuesday, following a series of incidents in recent months. 

An FAA spokesperson said the agency has “increased oversight of Southwest Airlines to ensure it is complying with federal safety regulations. The carrier "is working closely with the [FAA] in the review of recent events," a spokesperson for the airline said Tuesday.

Southwest “recently formed a dedicated team of subject-matter experts and leaders" that includes members from Southwest, the airline’s union partners and the FAA, its spokesperson said. The group is “tasked with performing an in-depth, data-driven analysis to identify any opportunities for improvement."

On July 14, a Southwest flight to Tampa dropped as low as 150 feet above water about 5 miles from its intended destination, according to Flightradar24. The plane landed in Ft. Lauderdale.

That incident came about a month after a Southwest flight from Phoenix to Oakland experienced a so-called “Dutch roll,” which causes the aircraft to roll side-to-side while also wagging its tail, prompting an investigation from National Transportation Safety Board, according to a report.

“Safety will drive the timeline” of the review, the FAA spokesperson said. Shares of Southwest fell 1.7% on Tuesday as the S&P 500 ticked lower. The company is set to report its latest financial results later this week.

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Before going any further, here's the main thing parents should know about swimming lessons: all children should have them.

Every year, over 4,500 people die from drowning in the United States — and, in fact, drowning is the leading cause of death for children ages 1 to 4. Swimming lessons can't prevent all of those deaths, but they can prevent a lot of them. A child doesn't need to be able to swim butterfly or do flip turns, but the ability to get back to the surface, float, tread water, and swim to where they can stand or grab onto something can save a life.

10 things parents should know about swimming lessons

As you think about swimming lessons, it's important to know:

1. Children don't really have the cognitive skills to learn to swim until they are around 4 years old. They need to be able to listen, follow directions, and retain what they've learned, and that's usually around 4 years old, with some kids being ready a little earlier.

2. That said, swim lessons between 1 and 4 years old can be useful. Not only are some kids simply ready earlier, younger children can learn some skills that can be useful if they fall into the water, like getting back to the side of a pool.

3. The pool or beach where children learn must be safe. This sounds obvious, but safety isn't something you can assume; you need to check it out for yourself. The area should be clean and well maintained. There should be lifeguards that aren't involved in teaching (since teachers can't be looking at everyone at all times). There should be something that marks off areas of deeper water, and something to prevent children from getting into those deeper areas. There should be lifesaving and first aid equipment handy, and posted safety rules.

4. The teachers should be trained. Again, this sounds obvious — but it's not always the case. Parents should ask about how teachers are trained and evaluated, and whether it's under the guidelines of an agency such as the Red Cross or the YMCA.

5. The ratio of kids to teachers should be appropriate. Preferably, it should be as low as possible, especially for young children and new swimmers. In those cases, the teacher should be able to have all children within arm's reach and be able to watch the whole group. As children gain skills the group can get a bit bigger, but there should never be more than the teacher can safely supervise.

6. There should be a curriculum and a progression — and children should be placed based on their ability. In general, swim lessons progress from getting used to the water all the way to becoming proficient at different strokes. There should be a clear way that children are assessed, and a clear plan for moving them ahead in their skills.

7. Parents should be able to watch for at least some portion. You should be able to see for yourself what is going on in the class. It's not always useful or helpful for parents to be right there the whole time, as it can be distracting for children, but you should be able to watch at least the beginning and end of a lesson. Many pools have an observation window or deck.

8. Flotation devices should be used thoughtfully. There is a lot of debate about the use of "bubbles" or other flotation devices to help children learn to swim. They can be very helpful with keeping children safe at the beginning, and helping them learn proper positioning and stroke mechanics instead of swimming frantically to stay afloat, but if they are used, the lessons should be designed to gradually decrease any reliance on them.

9. Being scared of the water isn't a reason not to take, or to quit, swimming lessons. It's common and normal to be afraid of the water, and some children are more afraid than others. While you don't want to force a child to do something they are terrified of doing, giving up isn't a good idea either. Start more gradually, with lots of positive reinforcement. The swim teacher should be willing to help.

10. Just because a child can swim doesn't mean he can't drown. Children can get tired, hurt, trapped, snagged, or disoriented. Even strong swimmers can get into trouble. While swimming lessons help save lives, children should always, always be supervised around water, and should wear life jackets for boating and other water sports.

The Centers for Disease Control and Prevention website has helpful information on preventing drowning. The American Red Cross offers an online water safety course for caregivers and parents and water safety videos for children. Many public pools and organizations like Boys & Girls Clubs and the YMCA offer swimming classes for all ages.

Source: Harvard Health Publishing