4:13pm: Big names on deck to report earnings
The Dow closed Tuesday up 27 points, less than 0.1%, at 35,438, the Nasdaq Composite added 86 points, 0.6%, to 14,145 and the S&P 500 improved 13 points, 0.3%, to 4,567. The small-cap Russell 200 index was flat at 1,966.
The DJIA managed to eke out its twelfth winning session in a row, its longest such run since February 2017.
General Electric was among the day's standouts after the company topped revenue expectations for the second quarter.
After the close, investors are watching for results from Microsoft, Alphabet and Visa.
12:05pm: Dow struggles to keep winning streak intact
US stocks were higher in noon trading ahead of earnings from Microsoft and Alphabet after the close today.
At midday, the Dow gained 68 points to 35,479, while the S&P 500 added 12 points at 4,567 and the tech-heavy Nasdaq rose 81 points to 14,140.
“For us, if we were just to look at the market and say we’re optimistic about the durability of this rally, we would want to see that leadership hand off, and we would want to see those cyclical sectors and small caps really start to outperform the market. We haven’t really seen that yet,” US Bank’s Tom Hainlin said.
Notable movers included shares of RTX Corporation, also known as Raytheon Technologies, which slid 15% after the company revealed an issue with certain Pratt & Whitney engines.
9:40am: Earnings flurry continues
The tech-laded Nasdaq moved higher on Tuesday ahead of key corporate earnings from sector giants Microsoft and Alphabet due after the closing bell.
Just after the open, the Nasdaq had added 50 points or 0.4% at 14,109 points, while the S&P 500 was flat at 4,554 points and the Dow Jones was modestly lower, down 28 points or 0.1% at 35,383 points.
Investors are also weighing up a deluge of earnings released Tuesday morning, including General Motors, General Electric, Xerox, Verizon, 3M, and Spotify.
“Adding season continues to ramp up, and several stronger-than-expected second-quarter results have helped to fuel bets the economy is heading towards a soft landing despite elevated interest rates,” noted FOREX.com senior market analyst Fiona Cincotta.
7:45am: Earnings eyed
US blue chips are expected to start fairly flat on Tuesday, taking a breather after the Dow Jones Industrial Average (DJIA) on Monday extended its longest winning streak since February 2017, with a US rate decision due tomorrow, and more big corporate earnings continuing to flow.
In pre-market trading, futures for the DJIA edged just 0.03% higher, meanwhile, those for the S&P 500 added 0.1%, and contracts for the Nasdaq 100 futures rose more noticeably, up 0.3% ahead of some key tech results.
On Monday, the DJIA rose more than 183 points, or 0.5% marking its 11th consecutive winning session, to close at 35,411, its highest level since April 2022 and its highest close since February 2022. The S&P 500 and the Nasdaq Composite added 0.4% and 0.2%, respectively.
A stronger-than-expected earnings season has helped maintain the market rally. General Electric, General Motors and Verizon are set to report earnings Tuesday morning, while mega-cap tech names Alphabet and Microsoft are scheduled to announce quarterly results after the close.
Investors are also awaiting the Federal Reserve’s latest policy decision, due on Wednesday. Fed fund futures data shows a 98% probability of a quarter-point hike, according to the CME FedWatch Tool. Investors are, more importantly, awaiting chair Jerome Powell’s statements on his outlook for interest rates as the Fed tackles waning inflation.
Ahead of the Fed decision, July US consumer confidence data, to be released on Tuesday, will give a snapshot of economic conditions.
TickMill Group’s market analyst Patrick Munnelly commented: "US consumer confidence measures have shown a lot of volatility recently, reflecting uncertainties about the outlook for inflation and interest rates. The Conference Board's confidence measure experienced a significant increase in June, and it is expected to have risen again in July.
"One of the reasons for this expected increase is likely the surge in the alternative University of Michigan consumer sentiment index, which reached its highest level since mid-2020. This rise in consumer sentiment may be driven by hopes that US interest rates are nearing a peak. However, it could also have implications for the Federal Reserve's approach to future rate hikes, possibly encouraging them to proceed cautiously before ruling out further increases."