The stock market traded mixed, paring earlier gains as earnings season began. Investors kept a close eye on another high inflation reading this week. Most sectors were up Tuesday, with the exception of energy stocks.
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The Nasdaq composite fell 0.1%. The S&P 500 fell 0.2%, and the Dow Jones Industrial Average gained 0.2%. The small-cap Russell 2000 was down 0.4%. The Innovator IBD 50 ETF (FFTY) fell 1.1%.
Volume fell on the Nasdaq and rose on the NYSE compared with the same time on Monday.
The consumer price index for June will be released Wednesday, with Econoday estimates of an 8.8% annual increase, up from May’s 8.6% rise. Some stock market investors believe that inflation has already peaked but that June’s inflation data won’t reflect that. In any case, Wednesday’s announcement could propel the market either to gains or lower lows, depending on the data. May’s inflation rate was the highest since 1981.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31234.67 | +60.83 | +0.20 |
| S&P 500 | (0S&P5) | 3845.75 | -8.68 | -0.23 |
| Nasdaq | (0NDQC ) | 11308.02 | -64.58 | -0.57 |
| Russell 2000 | (IWM) | 171.46 | -0.60 | -0.35 |
| IBD 50 | (FFTY) | 26.57 | -0.31 | -1.15 |
| Last Update: 10:18 AM ET 7/12/2022 | ||||
Earnings Season Begins For The Stock Market
Soda giant PepsiCo (PEP) reported better-than-expected second-quarter results early Tuesday. The company also raised its revenue outlook for the year. Pepsi shares added more than 0.7% in morning trade.
Dollar General (DG) said Chief Executive Todd Vasos is retiring and will be replaced by Chief Operating Officer Jeffery Owen as the discount retailer navigates high inflation and a tight labor market. Owen will assume the top job on Nov. 1, when Vasos’ retirement takes effect, the company said Tuesday. Pepsi shares gained 0.3%.
American Express (AXP) dropped 0.9%, weighing heavily on the Dow Jones following Morgan Stanley analyst Betsy Graseck’s downgrade. She also downgraded Capital One (COF), which fell 1%.
Similarly, retailer Gap (GPS) shed more than 7% after Chief Executive Sonia Syngal suddenly stepped down, and Wells Fargo downgraded the stock.
Health insurance giant and IBD Leaderboard stock UnitedHealth Group (UNH) remains above its 507.36 buy point of a double-bottom base. But it’s struggling to clear the 518.80 entry of a handle. The company reports second-quarter results Friday morning. UnitedHealth stock dipped 0.3% in Tuesday morning stock market trading.
Canoo (GOEV) climbed more than 75% after Walmart (WMT) signed a definitive agreement with the company to purchase 4,500 all-electric delivery vehicles, beginning with the Lifestyle Delivery Vehicle, plus the option to purchase up to 10,000 vehicles. Walmart gained 0.8%. Canoo trades below 5 a share.
Asia, Europe Stocks Fall As Global Economy Slows
Stock Markets in Europe and Asia fell across the board Tuesday as investors remained concerned that the global economy is slowing down. The Hong Kong Hang Seng Index fell 1.3%, and the Shanghai composite dropped 1%. Japan’s Nikkei 225 index fell 1.8%.
Meanwhile, European stocks also fell, with the London FTSE 100 off 0.3%, the German DAX down 0.5%, and the French CAC 40 index falling 0.2%.
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The yield on the 10-year Treasury note slipped another 8 basis points to 2.91%. The yield has plunged from a high of 3.5% on June 14. Currencies were also active, with the euro briefly dipping its closest to parity with the U.S. dollar since 2002.
Additionally, the price of U.S. crude oil fell 4% to below $100 a barrel. The Energy Select SPDR ETF (XLE) dropped more than 2%.
Looking ahead to this week’s earnings, Delta Air Lines (DAL) will report Wednesday. Banking giants JPMorgan Chase (JPM) and Morgan Stanley (MS), along with Taiwan Semiconductor Manufacturing (TSM) will report Thursday morning. Citigroup (C), BlackRock (BLK) and Wells Fargo (WFC) wrap up the stock market trading week with earnings reports on Friday.
Twitter (TWTR) rose more than 3% in Tuesday stock market trading, a day after it fell 8% when Tesla (TSLA) CEO Elon Musk said he is seeking to terminate his $44 billion deal for the social media giant due to the number of spam and fake accounts on the platform. Twitter said it plans legal action and is committed to closing the transaction at the agreed-upon price of $54.20 per share.
Follow Michael Molinski on Twitter @IMmolinski
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