The latest batch of corporate earnings updates sparked a selloff in stocks on Tuesday, with the tech-heavy Nasdaq leading the path lower.
Travel stocks were hit particularly hard after Norwegian Cruise Lines (NCLH) reported its second-quarter results. For the three-month period, the cruise operator brought in revenue of $1.2 billion and recorded a per-share loss of $1.14, missing analysts' consensus estimates. And in the company's earnings call, CEO Frank Del Rio said that bookings in the second half remain below the "extraordinarily strong" levels they were at in 2019. This sparked a 10.6% drop in NCLH stock to a point not much above its pandemic lows. Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well.
Meanwhile, Micron Technology (MU, -3.7%) followed in the footsteps of fellow chipmaker Nvidia (NVDA, -4.0%), whose revenue warning on Monday put pressure on tech stocks. This morning, MU said it anticipates challenging market conditions to last through its next fiscal year, sparked by lower demand for its memory chips.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"[The] memory industry, including Micron, is in the midst of a meaningful inventory correction by customers," says Susquehanna Financial Group analyst Mehdi Hosseini – who adds that the issue will likely not be resolved until at least mid-2023. Other semiconductor stocks closed lower on the news, including Advanced Micro Devices (AMD, -4.5%) and Applied Materials (AMAT, -7.6%).
Against this backdrop, the tech-heavy Nasdaq Composite slid 1.2% to 12,493 – marking its third straight loss – while the S&P 500 Index shed 0.4% to 4,122, its fourth consecutive decline. The Dow Jones Industrial Average gave back 0.2% to 32,774.
Other news in the stock market today:
- The small-cap Russell 2000 shed 1.5% to 1,912.
- U.S. crude futures slipped 0.3% to $90.50 per barrel.
- Gold futures gained 0.4% to finish at $1,812.30 an ounce.
- Bitcoin fell 3.6% to $23,064.60. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Novavax (NVAX) plunged 29.6% after the vaccine maker reported a per-share loss of $6.53 in its second quarter on revenue of $185.9 million. Analysts, on average, were expecting earnings of $5.54 per share on $1.0 billion in revenue. The company also slashed its full-year revenue forecast to a range of $2 billion to $3 billion (down from previous guidance for revenue of $4 billion to $5 billion), "to account for several evolving market dynamics," NVAX executives said.
- Signet Jewelers (SIG) plunged 11.7% after the jewelry retailer cut its second-quarter and full-year financial forecasts, citing a slowdown in consumer spending in July. SIG also said it is acquiring online jewelry retailer Blue Nile for $360 million in cash.
America's Most Expensive Cities
Tomorrow we'll get the latest update on inflation, with the consumer price index (CPI) slated for release at 8:30 a.m. Eastern time. "Investors are laser-focused on Wednesday's CPI data, as they hunt for signs of U.S. inflation levels, whether those levels have peaked and, ultimately, how the latest figures will impact the Fed's immediate and medium-term rate policy decisions," says Greg Bassuk, CEO at asset management firm AXS Investments.
June's CPI report showed inflation had not yet peaked, with significant price increases seen in food (+10.4% year-over year), energy (+41.6% YoY) and shelter (+ 5.6% YoY). And while it's possible that July's data could show moderation in cost increases – particularly given the recent drop in oil – higher prices remain a hot topic.
With that in mind, we decided to take a closer look at the most expensive U.S. cities. Whether it be gas prices, housing costs or groceries, this list is made up of the priciest American cities to call home.
-
Ask the Editor — Tax Questions on the New Senior DeductionAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new $6,000 deduction for taxpayers 65 and older.
-
These Summer 2025 Back-to-School Tax-Free Weekends Start NowSales Tax Over a dozen states offer back-to-school shoppers a sales tax holiday this summer.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales RevivalStrong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
Stock Market Today: Powell Rumors Spark Volatile Day for StocksStocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
-
Stock Market Today: Nasdaq Hits a New High as Nvidia SoarsA big day for Nvidia boosted the Nasdaq, but bank stocks created headwinds for the S&P 500.
-
Stock Market Today: Markets Chop Up More Trump ThreatsStocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation WeekPerhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff NoiseMarkets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
