4:15pm: S&P streak snapped
Stocks ended lower on Tuesday, breaking the S&P 500’s six-day record streak as investors waded through a deluge of earnings reports, mixed economic signals, and growing geopolitical uncertainty.
The S&P 500 lost 0.3% to finish at 6,371, while the Nasdaq Composite dipped 0.4% to 21,098. The Dow Jones Industrial Average fell 205 points, or 0.5%, to close at 44,634.
The small-cap Russell 2000 also shed 0.5%.
With the Federal Reserve’s interest rate decision on deck for Wednesday, traders showed signs of caution. Markets are widely expecting the central bank to hold rates steady, but the tone of Chair Jerome Powell’s comments will be closely watched for clues about the outlook for inflation and future policy.
Adding to the uncertainty, US and Chinese negotiators concluded two days of talks without announcing an extension to the current tariff truce, leaving open the risk of fresh duties in the coming weeks. President Trump is expected to make a final decision by Friday, with senior officials saying he’s weighing whether trade partners have made enough progress to avoid a blanket tariff hike.
With earnings season in full swing and political risks mounting, investors appear to be taking a breather after a record-setting run.
3:40pm: Proactive news headlines
- M2i Global will merge with aviation tech firm Volato Group in a stock-based deal, giving M2i access to a NYSE American listing and expanding Volato into the critical minerals supply chain.
- New Era Helium and Sharon AI’s joint venture has acquired 235 acres in Texas to develop a major AI and HPC campus featuring advanced energy systems and potential carbon capture technologies.
- Versarien PLC shares fell after the company announced failed asset sales and plans to place key subsidiaries into administration or liquidation.
- West Wits Mining secured a $50 million loan and updated feasibility study for its Qala Shallows Gold Project, initiating infrastructure work and transitioning into development and extraction.
- Gaming Realms PLC posted an 18% rise in revenue and a 30% increase in adjusted EBITDA for the first half of 2025.
- archTIS Ltd will host an investor webinar on July 31 featuring executives Daniel Lai and Kurt Mueffelmann to present quarterly financial results.
- Novo Resources reported strong June quarter results, including high-grade gold intercepts from its maiden drilling at the Clone prospect, confirming a sizeable gold system at Tibooburra.
3:05pm: Palo Alto eyeing CyberArk
Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) is reportedly in discussions to acquire CyberArk Software (NASDAQ:CYBR) in a deal worth about $20 billion, a move that analysts say could reshape the cybersecurity landscape and accelerate Palo Alto’s strategy to become an end-to-end platform provider.
Shares of CyberArk surged 11.5% on Tuesday afternoon following the Wall Street Journal report, while Palo Alto shares dropped around 5%.
The acquisition would build on Palo Alto’s recent M&A momentum, adding CyberArk’s more than 10,000 customers and Agentic AI solutions, which help organizations deploy AI agents with strict governance and access controls.
Wedbush said the deal would provide significant cross-sell and upsell opportunities for Palo Alto, further strengthening its platformization push amid rising AI-driven threats and continued cloud migration.
2:30pm: Stocks on the move
- Tapestry Inc was downgraded to 'Neutral' by Bank of America, which cited limited upside after the stock surged 66% this year despite continued strength at the Coach brand.
- Air Canada shares plunged over 13% after reporting a sharp decline in second-quarter net income, pressured by economic uncertainty and global conflicts.
- Union Pacific and Norfolk Southern announced an $85 billion merger to form the first fully transcontinental U.S. railroad, with completion expected by early 2027 pending approvals.
- Sarepta Therapeutics jumped 25% after the FDA cleared the company to resume ELEVIDYS shipments, determining a recent patient death was unrelated to the DMD gene therapy.
- PayPal beat second-quarter earnings and revenue estimates and raised its full-year profit outlook, driven by growth in branded checkout and Venmo.
- Spotify shares fell after the company reported a second-quarter loss of €0.42 per share, missing revenue and earnings expectations.
- UnitedHealth missed Wall Street forecasts with a 14% drop in adjusted quarterly earnings and lowered its full-year guidance amid a 34% decline in operating income.
1:30pm: Boeing delivers strong quarter
Boeing Co (NYSE:BA, ETR:BCO) reported a surge in revenue and a narrower loss for the second quarter, driven by increased commercial airplane deliveries and strong order intake.
Revenue was up 35% year-over-year at $22.75 billion, above Wall Street estimates of $21.86 billion.
The airplane maker reported an adjusted loss per share of $1.24, better than the $1.54 loss per share expected by analysts.
During Q2, Boeing delivered 150 airplanes, up from 92 a year ago and saw 455 net orders.
Production of its 737 airplanes reached 38 per month during the quarter, with the company planning to ramp up production to 42 per month this year. It is producing seven of its 787 Dreamliner aircraft per month.
12:25pm: July jobs preview
Bank of America expects the July US jobs report to reflect a “mixed bag of signal and noise,” with nonfarm payrolls rising by 60,000, below consensus expectations.
Much of the anticipated weakness stems from a projected 25,000 decline in government jobs following a sharp, likely seasonal, spike in June education hiring, analysts believe.
Attention will shift to private payrolls, forecast to increase to 85,000 amid falling initial jobless claims. However, elevated continuing claims and typical seasonal softness in July pose downside risks.
The unemployment rate is expected to edge up to 4.2%, which BofA views as consistent with a stable labor market. “We think markets would likely take that as signal of a balanced labor market, despite the payroll moderation,” analysts wrote.
Structural challenges remain, including soft hiring in professional and business services, likely due to AI adoption and low turnover, while leisure and hospitality may show signs of recovery ahead of likely headwinds from immigration restrictions.
11:45am: Union Pacifc makes Norfolk move
Union Pacific Corp (NYSE:UNP, ETR:UNP) and Norfolk Southern Corp (NYSE:NSC) have agreed to merge in an $85 billion cash-and-stock transaction that will create the first fully transcontinental railroad in the United States.
The deal, unanimously approved by both companies' boards of directors, is expected to close by early 2027, pending regulatory and shareholder approvals.
The combined network aims to reduce transit times and improve service reliability by eliminating interchange points between the two railroads.
11:10am: Soft demand for labor
The June JOLTS report shows continued soft demand for labor. Job openings fell to 7.4 million, and the job openings-to-unemployed ratio edged down to 1.06 from 1.08 a year earlier.
While the labor market appears balanced on the surface, this ratio may overstate job market strength as the drop in unemployment partly reflects discouraged workers leaving the labor force, acording to analysts at Wells Fargo.
The hiring rate slipped to 3.3%, its lowest level in seven months, signaling reduced employer appetite for new workers. Still, overall employment growth continues, supported by persistently low layoffs, with the layoff rate holding steady at 1.0%, below its pre-pandemic norm.
The quit rate was flat at 2.0% in June, reflecting a subdued rebound in voluntary job switching, which Wells Fargo suggests workers are staying put more out of necessity than opportunity.
Wells Fargo warns that continued weak hiring and low employee churn could make the labor market more vulnerable to a rise in layoffs.
10:30am: Lots of data this morning
US job openings edged lower in June to 7.44 million, falling short of economists’ expectations for 7.5 million, according to the latest JOLTS data.
Meanwhile, consumer confidence rose modestly in July, with the Conference Board’s index increasing to 97.2, slightly above the consensus estimate of 96. The improvement was driven by a more optimistic outlook for future conditions, even as assessments of the present situation slipped.
Wells Fargo analysts noted that while consumers appear more hopeful about the months ahead, concerns over tariffs and a cooling labor market continue to weigh on sentiment. Write-in responses in the survey pointed to ongoing worries that tariffs may push prices higher. Still, 12-month inflation expectations declined to 5.8% from 5.9% in June, down significantly from the 7.0% peak seen in April following tariff-related announcements.
“Consumers have shaken off the worst of their initial fears,” Wells Fargo said, “but overall confidence remains below the levels seen in recent years.”
9:50am: Dow ticks lower
Wall Street is tiptoeing higher Tuesday morning, with investors juggling corporate earnings, economic data, and the looming Federal Reserve decision—all while keeping one eye on trade headlines.
The S&P 500 is up 0.1%, tacking on 9 points to 6,399, while the Nasdaq is leading the major indexes with a 0.3% gain, climbing 70 points to 21,248. The Russell 2000, a proxy for smaller-cap stocks, is also enjoying a solid morning, rising 0.7%.
The Dow Jones Industrial Average, meanwhile, is slightly in the red, down 39 points at 44,799.
There’s no shortage of storylines driving markets this week. The Fed kicks off its two-day policy meeting today, setting the stage for potential clues on interest rate direction. Meanwhile, labor market watchers are tuning in for the June JOLTS report, which starts a cascade of employment data culminating in Friday’s key nonfarm payrolls number.
Economic updates out this morning were a mixed bag: the US advance goods trade deficit narrowed to $85.99 billion in June, better than expected, while wholesale inventories rose slightly, defying forecasts for a decline. Retail inventories excluding autos held flat.
Earnings season is also heating up. Pre-market disappointments from Spotify, Merck, and UnitedHealth have kept optimism in check. Investors will turn their attention after the bell to Starbucks, with analysts watching closely for signs of a turnaround and any effects from trade-related tariffs.
Tech titans Apple, Amazon, Microsoft, and Meta are still to come later this week, and their results could be pivotal for markets already trading near all-time highs.
Also on traders’ minds: a Friday deadline from President Trump, which could see tariffs snap back into place unless new trade agreements are struck. A surprise drop in the trade deficit has markets wondering if businesses rushed shipments ahead of any new restrictions.
And with consumer confidence and home prices data due today, plus Q2 GDP later this week, investors have plenty of checkpoints to gauge the strength of the economy before July closes out.
7:45am: Trending positive
US stock futures were pointing to a positive start on Tuesday, amidst a bad earnings miss from UnitedHealthalth but a better result from PayPal.
Futures for the S&P 500 and Nasdaq 100 were up 0.2% and 0.4%, while Dow Jones futures are up 0.1%.
This followed a relatively quiet start to the week, with the Dow losing 65 points, the S&P gaining one and the Nasdaq gaining 70.
Tuesday morning's news includes earnings from United, a Dow component, which badly missed expectations and reinstated full-year guidance below what the Street was expecting.
Elsewhere, PayPal reported second-quarter earnings and revenue that topped estimates, while full-year earnings guidance was increased.
These are two of over 30 US companies reporting on the say, others including Boeing, Procter & Gamble, Spotify Technology all pre-market, and Booking, MARA Holdings, Mondelez, Starbucks, Teladoc, Visa all afterhours.
Market analyst Kenny Polcari at Slatestone Wealth notes that the Equal Weight S&P lost 42 points while the 'Mag 7' stocks (Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla) gained strongly, with the main S&P index weighted by market capitalization, meaning larger companies have a disproportionate influence on the index's performance.
"When these mega-cap stocks perform strongly, they can drive the S&P 500 higher, even if many smaller companies in the index decline," he notes, while the S&P Equal Weight Index gives each of the 500 companies an equal weighting of approximately 0.2% each and so reflects the performance of the "average" stock in the S&P.
"Yesterday, the market favored large-cap tech/growth stocks (think Mag 7), energy stocks and consumer discretionary stocks - versus the other sectors. This divergence led to the S&P 500 (heavily influenced by Mag 7) to rise while the Equal Weight index (more balanced across sectors) fell."
There were "no fireworks" over the EU/US trade deal announced on Sunday, and no major moves over the ongoing US/China talks, with Polcari getting the sense "that Trump is set to extend the time frame for those talks to continue".