- US stocks mixed at the close
- Reddit (NYSE:RDDT) earnings eyed
- Disney slumps 9.5%
4:10pm: Wall Street little changed
The three major stock indexes were largely unchanged at Tuesday’s closing bell as investors turned to Reddit (NYSE:RDDT)’s earnings, the social media company's first quarterly report as a public entity.
The Nasdaq slipped 0.1% at 16,322 points while the S&P 500 and Dow Jones both added 0.1% at 5,187 points and 38,883 points, respectively.
Disney finished the day 9.5% lower at about $105 following its mixed fiscal second quarter earnings.
2:01pm: Nasdaq into the red
Wall Street gains have been pared, with the tech-heavy Nasdaq Composite falling into the red on the back of comments from Fed speaker Neel Kashkari and as Middle East tensions showed no sign of coming off the boil despite a new round of talks beginning in Egypt.
Minneapolis Fed president Kashkari said he expects the Fed will need to keep rates at current levels for an "extended period".
Disney (10.25%), Tesla (3.1%) and Nvidia (1.6%) were among the notable fallers.
Airlines and travel groups were also among those dragging on the indices, including American Airlines (down 2.8%), Expedia (2.1%) and cruise operators Norwegian (2%) and Royal Caribbean (0.5%).
This followed falls for airline stocks in Europe after the chief executive of budget airline Ryanair said ticket fare prices will rise by less than previously forecast.
However, Reuters reported that Royal Caribbean was in talks about recruit thousands of workers "to keep up with record cruise demand".
12:45pm: Disney tumbles
US stocks were little changed at midday as earnings reports continued to roll in.
The S&P 500 was up 0.2% at 5,193 points, the Nasdaq added 0.2% at 16,379 points and the Dow Jones was up 0.1% at 38,881 points.
Walt Disney Co (NYSE:DIS, ETR:WDP) was down 10% following its disappointing earnings report which included a softer-than-expected outlook for its streaming business.
XTB research director Kathleen Brooks said Disney’s earnings report was no fairytale for the entertainment company as its stock sells off.
“[Disney CEO] Bob Iger may have won the boardroom battle with Nelson Peltz, but not even higher future guidance for earnings per share was enough to stop the market selling Disney on the back of these results,” she said.
“Expectations for Disney’s earnings were high, as the share price has risen by nearly 30% in the year to date. With a decent rally coming into these results, nothing less than perfection was acceptable to the market, as Iger and co. found out on Tuesday.”
9.32am: Wall Street opens a tick higher
US stocks opened slightly higher on Tuesday as a number of company earnings and reports helped move some stocks in early trading.
The Dow Jones was up 32 points at 38,884, while the S&P 500 jumped 7 points to 5,188.
Meanwhile, the Nasdaq lifted 8 points to 16,357.
Disney shares slipped over 7.5% after it reported stronger-than-expected earnings as it continues its transformation plan.
Revenues for the second quarter of the House of Mouse's fiscal year increased to $22.08 billion from $21.8 billion a year earlier, roughly in line with analyst expectations.
Pre-tax income tumbled 69% to $657 million due to goodwill impairments of $2,052 million to its Star India and entertainment networks.
Shares in exercise bike maker Peloton shot up by more than 16% after reports revealed a number of private equity firms were circling the business.
Peloton was recently forced to undergo a restructuring plan to cut annual run-rate expenses by US$200 million by the end of next year, with its current CEO deciding to step down.
8.29am: Wall Street to open flat
US stocks are set to open flat on Tuesday, with investors hoping it can find some more of the momentum which has pushed the indexes higher over the last four sessions.
Both the Dow Jones and S&P 500 are looking likely to edge marginally higher at 39,016 and 5,208 points respectively.
Meanwhile, the Nasdaq is positioned to open 20 points lower at 18,171.
David Morrison at Trade Nation said: "US stock index futures were a tad firmer in early trade on Tuesday, building on gains from the latter half of last week.
"Investors were relieved to wave goodbye to April which proved to be an unsettling one in terms of increased volatility.
"Sentiment soured significantly last month, following an uninterrupted rally since the end of October. But US stock indices have had a strong start to May and last week saw a couple of positive factors which contributed to the turnaround.
"The probability of the first interest rate cut has shifted back to September from November. On top of this, the possibility of two 25 basis point cuts this year has also risen."