U.S. stocks closed lower on Tuesday as investors digested a wave of corporate earnings reports and economic data. The market is now looking ahead to the Federal Reserve’s policy statement expected on Wednesday. The Dow Jones Industrial Average fell 0.46%, while the S&P 500 and Nasdaq declined 0.30% and 0.38%, respectively.
Shares of UnitedHealth dropped after the company forecasted annual profits below expectations. This impacted the broader healthcare sector. Whirlpool also experienced a significant decline, plunging after missing second-quarter earnings estimates and trimming its full-year profit outlook.
UPS was another notable laggard, contributing to the decline in the Dow Transports index. In contrast, VF Corp experienced a surge in its stock price, rising about 13% in premarket trading. The company beat first-quarter revenue estimates, attributing this to increased demand for its apparel and footwear products.
Traders on the floor of the New York Stock Exchange reacted to the mixed bag of earnings reports.
investors anticipate Fed and earnings
They are bracing for further guidance from the Federal Reserve.
The Fed kicked off its two-day policy meeting on Tuesday alongside a busy slate of economic data. While the Fed is expected to hold rates steady, investors remain on edge for any signs of economic weakness that could justify cuts later this year. Job openings and hirings both fell in June, setting the stage for the all-important monthly U.S. nonfarm payrolls report on Friday.
Meanwhile, consumer confidence saw an uptick in July, but worries about job availability intensified, according to official figures. Big Tech earnings are in full swing this week, with Meta and Microsoft set to report after the bell on Wednesday. Apple and Amazon are due on Thursday.
According to Barclays head of U.S. equity strategy Venu Krishna, Big Tech has been the lone major market cohort this year that’s had earnings growth outperform its actual price return. Krishna argues this supports Big Tech’s lofty valuations and is a key reason to remain bullish on the sector. Investors remain cautious as they await more corporate earnings reports and the Federal Reserve’s upcoming decision.
The stock market’s trajectory will likely be influenced by these factors in the coming days.
