- Index ended the day lower Wednesday as investors braced for Tesla and Alphabet's earnings.
- All eyes are on the carmaker to know if it has moved past its early-year headwinds.
US stocks were little changed Tuesday, as investors geared up for highly anticipated earnings reports.
After the closing bell, Tesla and Alphabet are set to release their second-quarter performance.
Investors will be especially attentive to the carmaker, looking to see if its performance has improved since the start of the year. Tesla was battered by a slew of headwinds in the first quarter, but investors have since grown bullish on the flagship EV manufacturer.
The two firms are the first of the Magnificent Seven tech stocks to release their earnings.
If they deliver strength, it could bring back momentum to the tech rally. The stock market is fresh off a winning rally on Monday, which saw the Nasdaq 100 and S&P 500 rise above 1%.
Amid Tuesday's notable stock movers, music-streamer Spotify surged as much as 14% on record profits, while UPS' missed guidance sent it tumbling nearly 12%.
Otherwise, GDP and inflation data this week might also sway markets this week. Personal consumption expenditures, the Federal Reserve's preferred inflation gauge, is set to release Friday.
According to Comerica chief economist Bill Adams, it's likely to continue cooling from last month.
"The Fed's preferred measure of inflation is expected to tick lower in the June release, paralleling the month's slower CPI inflation. As with the CPI, both total PCE inflation and core PCE inflation excluding food and energy likely slowed on the month," he said.
Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
- S&P 500: 5,555.69, down 0.16%
- Dow Jones Industrial Average: 40,357.96, down 0.14% (-57.48 points)
- Nasdaq composite: 17,997.35, 0.06%
Here's what else is happening:
- A big rotation from cash to stocks will send the S&P 500 soaring 17%, UBS projected.
- The housing market remains stuck in a rut as existing home sales near 2010 lows.
- Shelter inflation is too high for the Fed to cut more than once this year, Vanguard says.
- Trump's own trade policies undercut his plans to weaken the dollar.
- Stocks are coming up on 2 catalysts that will take the bull run higher, Ed Yardeni says.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil was decreased by 1.3% to $77.33 a barrel. Brent crude, the international benchmark, slumped 1.19% to $81.48 a barrel.
- Gold gained 0.46% to $2,409.1 per ounce.
- The 10-year Treasury yield slid one basis point to 4.242%.
- Bitcoin fell 2.32% to $65,987.