Stock futures slide in overnight trades

Microsoft shares lose after-hours gains and turn negative

Microsoft shares fell about 1% in after-hours trading, reversing earlier gains.

Shares were initially higher after the company posted quarterly earnings per share that beat Street expectations. However, investor sentiment soured after Microsoft issued a disappointing current-quarter revenue forecast on its earnings conference call.

The company forecast revenue of $50.5 billion to $51.5 billion in the fiscal third quarter, while analysts polled by Refinitiv expected $52.43 billion.

Learn more about Microsoft’s results here.

Darla Mercado, Jordan Novet

Morgan Stanley’s Mike Wilson expects profits to start rolling on weaker consumer

Morgan Stanley’s Mike Wilson said investors should prepare for tougher times ahead.

“The numbers are finally going to come down in a way that we didn’t think would happen in the fourth quarter, which they haven’t, but now we think it’s happening,” Wilson said Tuesday on “Closing Bell: Overtime” from CNBC. ”

The investment strategist said he expects earnings to start to pick up as companies deal with a weakening consumer.

Still, he’s ready to change his outlook if he doesn’t see a “more meaningful” levy in the next three or four months, or by April.

“We’ll probably cancel our call, … because we’re still in a world of some financial repression, and bonds aren’t necessarily a great longer-term alternative, and stocks are kind of the only game in city ​​in a higher inflationary environment,” he said. “We’re not prepared to make that call today because we think the reward for risk is out of whack.”

—Sarah Min

Microsoft shares rise after earnings results show resilience in the cloud

Shares of Microsoft led the gains in after-hours trading, up more than 4% after its quarterly results beat estimates on both top and bottom earnings. The stronger than expected report was driven by strong growth in its cloud unit.

Revenue from Microsoft’s Intelligent Cloud segment was $21.51 billion, up 18%. Meanwhile, sales of Azure and other cloud services, which Microsoft doesn’t report in dollars, rose 31%.

—Yun Li

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