Highlights
Stocks slipped Tuesday on earnings news and as the market came under mild corrective pressure after the S&P 500 rose for six straight days to reach record highs. The Dow Jones industrial average decreased 0.5 percent, the S&P 500 eased by 0.3 percent, and the Nasdaq was off 0.4 percent.
US Treasury yields declined amid strong demand for the day's 7-year note auction. The dollar rose while oil prices jumped for a second straight day after President Trump continued to threaten secondary tariffs on buyers of Russian oil.
Earnings news mostly depressed stocks Tuesday. Boeing, Merck, United Health, UPS and Whirlpool were among the big names selling off after reporting disappointing results. Some investors were holding back awaiting a batch of earnings from Magnificent Seven shares from Amazon, Apple, Meta, and Microsoft.
Underlying sentiment remains positive after the US and EU announced a tentative trade deal on Sunday and as investors expect more similar deals to defuse the threat of a wide trade war ahead of Friday's deadline. US-China trade talks continued on Tuesday and were expected to yield another 90-day delay.
The week's biggest US macro news gets under way on Wednesday with the first reading on GDP for the second quarter due at 8:30 am ET, the Federal Reserve policy announcement due at 14:00 ET. US personal income and spending data are due at 8:30 am ET on Thursday and the employment report at 8:30 am ET on Friday.
US Treasury yields declined amid strong demand for the day's 7-year note auction. The dollar rose while oil prices jumped for a second straight day after President Trump continued to threaten secondary tariffs on buyers of Russian oil.
Earnings news mostly depressed stocks Tuesday. Boeing, Merck, United Health, UPS and Whirlpool were among the big names selling off after reporting disappointing results. Some investors were holding back awaiting a batch of earnings from Magnificent Seven shares from Amazon, Apple, Meta, and Microsoft.
Underlying sentiment remains positive after the US and EU announced a tentative trade deal on Sunday and as investors expect more similar deals to defuse the threat of a wide trade war ahead of Friday's deadline. US-China trade talks continued on Tuesday and were expected to yield another 90-day delay.
The week's biggest US macro news gets under way on Wednesday with the first reading on GDP for the second quarter due at 8:30 am ET, the Federal Reserve policy announcement due at 14:00 ET. US personal income and spending data are due at 8:30 am ET on Thursday and the employment report at 8:30 am ET on Friday.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
