4:19pm: Earnings season races on
The Dow closed Tuesday up 71 points, 0.2%, at 35,631, while the Nasdaq Composite fell 62 points, 0.4%, to 14,284 and the S&P 500 shed 12 points, 0.3%, to 4,577. The small-cap Russell 2000 index declined 9 points, 0.5%, to 1,994.
During the session, the DJIA hit its highest level since February 2022.
Meanwhile, shares of pharmaceutical firm Merck lost 1.3% despite strong sales of its drug Keytruda sales and Pfizer stock fell 1.2% after the company posted mixed results on low Covid product sales. Uber and JetBlue shares also tumbled.
Caterpillar shares were a bright spot, gaining nearly 9% on strong results,
12:05pm: Stocks pull back after strong July
US stocks were mixed in noon trading as August began on a down note on some weaker corporate earnings.
At midday, the Dow rose 8 points to 35,567 while the S&P 500 eased 16 points at 4,573 and the tech-heavy Nasdaq slipped 66 points to 14,281.
“We’ve had a market that’s been so strong for so many days that you get these strings of record highs on indices — basically, what feels like a relief rally that economic doom is not upon us,” Mariner Wealth Advisors managing director Tim Lesko said.
Notable movers included shares of Norwegian Cruise Line Holdings Ltd, which sank 14% after the company issued weak financial guidance for its current quarter.
9:40am: Mixed bag of earnings
Stocks were mixed at the open on Tuesday as investors digested another slew of corporate earnings.
Just after the market opened, the Dow Jones had added 85 points or 0.2%, while the S&P 500 was down 9 points or 0.2% and the Nasdaq had shed 83 points or 0.6% at 14,263 points.
Major movers included Caterpillar, up 4.6% on an earnings beat, and Merck, up 1.4% after reporting a narrower-than-expected loss while raising its sales outlook.
Uber fell 5.1% despite reporting its first-ever operating profit in the second quarter, and Pfizer slipped 0.7% as the pharmaceutical firm slashed its full-year sales guidance by $1 billion.
7:45am: Futures seen opening slightly lower
The Dow Jones index is expected to open slightly lower, testing recent gains alongside the Nasdaq and the S&P 500, as investors focus on economic data at the start of the month.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were 0.1% lower, while those for the S&P 500 fell 0.3%, and contracts for the Nasdaq 100 futures were down 0.4%.
The Dow closed Monday up 100 points, 0.3%, at 35,559, the Nasdaq Composite added 29 points, 0.2%, to 14,346 and the S&P 500 improved 7 points, 0.2%, to 4,589. The small-cap Russell 2000 index gained 19 points, 1%, to 2,001.
“Stateside, the first reading for the July PMI manufacturing index improved to a three-month high, although it still remains below the 50 expansion level. There are signs that government incentives for 'green' industries are helping to boost demand for capital goods, offering hope that the sector's activity may be bottoming out,” noted Patrick Munnelly at Tick Mill Group.
“Nevertheless, the ISM manufacturing index for July is still expected to be below the expansion level of 50,” he added.
The S&P manufacturing sector PMI is due out at 9.45am ET.
Also out today are data on US construction spending for June which are likely to have been affected by the Fed Reserve’s spate of interest rate hikes. Last week, the Federal hiked rates to their highest level in over 22 years.
The crucial piece of economic data this week comes out on Friday when July payrolls report is due Forecasts predict that the US economy to add 200,000 jobs for the month. Non-farm payrolls increased by 209,000 in June.
On the earnings front, some key results are expected today. Among them Uber Technologies Inc (NYSE:UBER), Pfizer Inc and Merck & Co Inc (NYSE:MRK).