Stock market news today: US stocks waver amid earnings flood, with Big Tech on deck
07/23/2024 20:40
A marquee earnings day brings Big Tech results, in focus as investors assess the future of this year's rally.
US stocks wobbled on Tuesday as investors weighed early reports on a marquee earnings day, with Big Tech results later in focus as potential fuel to sustain this year's rally.
The S&P 500 (^GSPC) fell just below the flat line while the tech-heavy Nasdaq Composite (^IXIC) slipped more than 0.2%. The Dow Jones Industrial Average (^DJI) was down about 0.1%.
Investors are assessing earnings from General Motors (GM) and Coca-Cola (KO) out the gate early in Tuesday's stream of high-profile quarterly reports. The wait is on for Alphabet (GOOGL, GOOG) and Tesla (TSLA) results due after the bell, with the market watching for signs of continuing growth from the first pair of the "Magnificent Seven" behemoths.
Read more: 32 charts that tell the story of markets and the economy right now
A resurgence in tech stocks helped the S&P 500 and Nasdaq roar higher on monday, a rebound from the sharp falls last week that came amid a rotation away from the megacaps that have fueled this year's rally.
The renewed tech focus comes as volatility around the US presidential election ebbed over the past two days. Vice President Kamala Harris is projected to have secured delegate backing to become the Democratic presidential nominee, helping settle any remaining nerves over President Joe Biden's withdrawal from the race.
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Stocks little changed at the open
US stocks wobbled on Tuesday as investors weighed early reports on a marquee earnings day, with Big Tech results later in focus as potential fuel to sustain this year's rally.
The S&P 500 (^GSPC) fell jus below the flat line while the tech-heavy Nasdaq Composite (^IXIC) slipped more than 0.2%. The Dow Jones Industrial Average (^DJI) was down about 0.1%.
The minor declines came after a Big Tech led a rally in markets on Monday.
Quick take: Coca-Cola
Similar to my prior post comparing FedEx (FDX) to UPS (UPS), you have to do the same thing always with Coca-Cola (KO) and PepsiCo (PEP).
Coca-Cola easily wins the battle of the second quarters. The two things that stood to me from the results this morning were a 15% organic sales increase and a nice pop in operating margins year-over-year. PepsiCo pretty much delivered the opposite.
Coke also lifted guidance, PepsiCo no go.
Quick take: GM's earnings
In what is becoming a recurring theme dating back to the middle of last year, General Motors (GM) once again hiked its annual profit forecast after a sizable quarterly beat.
GM sees full-year adjusted earnings of $9.50 to $10.50 a share. Previously, it had modeled for $9.00 to $10 a share. The company beat second quarter earnings estimates by 31 cents.
For the year, it reiterated a recently lowered goal of producing 200,000 to 250,000 EVs.
I am talking to GM CFO Paul Jacobson around 8am ET today. Keep an eye out for that interview airing in the 9am ET live on Yahoo Finance.
All in all, GM continues to regain its cred with investors.
Another tough quarter for UPS
The sentiment around FedEx (FDX) and UPS (UPS) has really shifted, with the former seen as a solid play on tons of cost-cutting while the latter is out of favor because of bad quarters.
To that end, Another tough quarter for UPS this morning. I don't think the full year operating margin cut is going to be well-received by investors.
