Ticker: Google’s Q2 earnings of $112.1B beat Wall Street

The day’s business news at a glance

Google parent company Alphabet Inc. posted stronger-than-expected results for its second quarter, a sign that it's massive artificial intelligence spending spree is paying off so far.

The Mountain View, California-based company said Wednesday it earned $112.11 billion, or $9.11 per share, in the April-June period. That's up from $28.2 billion, or $2.31 per share, in the same period a year earlier. Revenue grew 24% to $119.8 billion from $96.43 billion. Analysts, on average, were expecting

revenue of $117.06 billion, according to a poll by FactSet.

Earnings at Tesla fall as spending cuts into profit

Tesla's profits fell last quarter as the car company run by Elon Musk shoveled more money into research and development, cutting into profits from a sharp increase in vehicle sales.

The Austin, Texas, company reported Wednesday that second-quarter net income fell to $1.11 billion, or 32 cents a share, from $1.17 billion, or 33 cents per share. Excluding charges, per share profit of 33 cents came in below analysts' consensus estimate. Revenue rose to $28.24 billion in the April-June period, beating Wall Street's forecast. Tesla shares fell 2.7% in after-hours trading.

Iconic Cinerama Dome theater will reopen

The iconic Cinerama Dome in Hollywood is set to be restored and reopened. Alamo Drafthouse Cinema will operate the theater and an adjacent 14-theater complex. Sony Pictures Entertainment announced the plan to restore the Dome and reopen it in early 2028. The distinctive geodesic exterior and large logo will remain intact.

The dome will not have in-theater dining, unlike other Drafthouse theaters. The massive screen supports 70 mm projection, popularized by Christopher Nolan's "The Odyssey." The dome has been closed since April 2021 because of the COVID-19 pandemic. The adjacent complex will offer in-theater dining.

Oil prices rise another 3%, while Wall Street drifts

U.S. stock indexes barely budged after oil prices climbed another 3%. The S&P 500 edged down by 0.1% Wednesday after swinging between modest losses and gains. The Dow Jones Industrial Average was virtually unchanged and slipped less than 0.1%, while the Nasdaq composite fell 0.6%.

Philip Morris International, AT&T and other stocks rallied after reporting stronger profits for the spring than analysts expected. But AI stocks continued to swing and dragged the U.S. market with them. The price for Brent crude oil touched its highest level in nearly six weeks, and Treasury yields rose in the bond market.

A new threat by Yemen's Houthis could widen war

Yemen's Houthi rebels have declared a blockade on Saudi Arabia, potentially widening the Iran war and further disrupting global trade. They claim to have closed the Bab el-Mandeb Strait to Saudi-linked shipping in retaliation for a Saudi blockade on Yemen and a recent attack on the airport in Yemen's rebel-held capital.

The strait is a vital shipping chokepoint, with around 12% of global trade passing through. Houthi attacks on shipping would risk reigniting the war with Saudi Arabia, which has diverted millions of barrels of oil exports to the Red Sea as the Iran war has largely closed the Strait of Hormuz.