Stock Market Today: Nasdaq Slumps Ahead of Microsoft Earnings
The S&P 500 also closed lower Tuesday, while the Dow Jones Industrial Average managed a win.
Joey Solitro
Stocks opened higher Tuesday but lost steam as the session wore on amid weakness in several mega-cap stocks. It was a full day for economic and earnings reports, but most market participants looked ahead to tonight's quarterly results from Microsoft (MSFT, -0.9%), which kick off a busy stretch of Big Tech earnings, and tomorrow's policy announcement from the Fed.
Today's jam-packed economic calendar featured the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which showed home prices were up 5.9% year-over-year in May – though this was slower than the 6.4% gain seen in April.
New York City, which remains one of the most expensive cities to live in, saw the biggest year-over-year increase (+9.4%), while Portland, Oregon, saw the smallest rise (+1%).
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
Consumer confidence ticks higher in July
Elsewhere, The Conference Board said its Consumer Confidence Index climbed 2.5 points in July to 100.3 from June's downwardly revised reading of 97.8.
"Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates, and uncertainty about the future; things that may not improve until next year," said Dana M. Peterson, chief economist at The Conference Board, in a statement.
Job openings barely budge in June
Jobs data was also on Wall Street's radar ahead of tomorrow's Fed announcement and Friday's monthly nonfarm payrolls reports. Shortly after the open, the Bureau of Labor Statistics released the Job Openings and Labor Turnover Survey (JOLTS), which showed job openings remained unchanged at 8.2 million in June from May's upwardly revised level.
"Nothing much changed in June in regards to job openings – employers again had about 4.9% of roles unfilled, similar to the month prior," says Elizabeth Renter, senior economist at NerdWallet. "However, this is notably lower than a year ago, when 5.5% of jobs were vacant. The share of open jobs is still elevated compared to pre-pandemic, but it's much, much closer."
Howmet stock gets downgraded despite post-earnings surge
In single-stock news, Howmet Aerospace (HWM) jumped 13.2% after the aerospace company reported higher-than-expected earnings of 67 cents on $1.88 billion in revenue. The company also forecast third-quarter and full-year revenue above what analysts are anticipating.
Still, CFRA Research analyst Daniel Rich downgraded HWM to Strong Sell from Sell after the results. Rich says he looks favorably on Howmet's guidance and maintains "positive expectations for global travel," but the stock is trading at a roughly 40% premium to its five-year historical average valuation – much higher than its aerospace peers – which "makes shares more likely to underperform in the near term."
PayPal boosts stock buybacks
PayPal Holdings (PYPL) stock rallied 8.6% after the payments company beat top- and bottom-line expectations for its second quarter and raised the dollar amount for its share repurchase program to $6 billion from the prior estimate of at least $5 billion.
CFRA Research analyst Alexander Yokum said PayPal's Q2 results "were a step in the right direction. However, he maintained a Hold rating on the financial stock "given the rising number of checkout payment options, which we believe will limit PYPL's margin upside."
Pfizer earnings beat estimates
Elsewhere, Pfizer (PFE) stock rose 2.2% after the pharmaceutical giant reported its first year-over-year increase in revenue since Q4 2022. The company beat on both the top and bottom lines and lifted its full-year forecast.
P&G sinks after earnings
On the negative side of the ledger was Procter & Gamble (PG), which declined 4.8% after the consumer products company came up short of revenue estimates for its fiscal fourth quarter, as an unfavorable foreign exchange impact offset price hikes.
As for the main indexes, the Dow Jones Industrial Average added 0.5% to 40,743 on strength in Goldman Sachs (GS, +2.6%). The S&P 500 fell 0.5% to 5,436, while the Nasdaq Composite slumped 1.3% to 17,147, hurt by mega-cap stocks such as Nvidia (NVDA, -7%) and Tesla (TSLA, -4.1%).
Related content
- Stocks With the Highest Dividend Yields in the S&P 500
- The Best Large-Cap Stocks to Buy
- Paris Olympics: 5 Sports-Related Stocks Going for Gold
-
The Top 10 Side Gigs For Retirees In 2026Money is freedom in retirement; here’s how to earn more of it with a profitable side gig
-
3 Retirement Changes to Watch in 2026: Tax EditionRetirement Taxes Between the Social Security "senior bonus" phaseout and changes to Roth tax rules, your 2026 retirement plan may need an update. Here's what to know.
-
The 'Yes, And...' Rule for RetirementRetirement rarely follows the script. That’s why the best retirees learn to improvise.
-
What Not to Do After Inheriting Wealth: 4 Mistakes That Could Cost You EverythingGen X and Millennials are expected to receive trillions of dollars in inheritance. Unless it's managed properly, the money could slip through their fingers.
-
'The Money Prism' Solves Retirement Money's Biggest Headache: Here's HowThis simple, three-zone system (Blue for bills, Green for paycheck, Red for growth) helps you organize your retirement savings by purpose and time.
-
No, AI Can't Plan Your Retirement: This (Human) Investment Adviser Explains WhyAI has infinite uses. But creating an accurate retirement strategy based on your unique goals is one place where its possibilities seem lacking.
-
A Value Focus Clips Returns for This Mairs & Power Growth FundRough years for UnitedHealth and Fiserv have weighed on returns for one of our favorite mutual funds.
-
Small-Cap Stocks Gain Momentum. That's Good News for This iShares ETFThe clouds appear to be parting for small-cap stocks, which bodes well for one of our favorite exchange-traded funds.
-
Don't Let a 60/40 Portfolio Derail Your Retirement: Why a Cookie-Cutter Approach Could Cost YouChoosing a personalized retirement investment plan, rather than relying on the 60/40 portfolio, could help protect your savings and ensure long-term growth.
-
Are You Winging Your Retirement Plan? A Wealth Adviser's Tips to Help Build Wealth and Navigate RiskIf you have no strategy tying together your accounts or haven't modeled scenarios to make sure your savings will last, then your plan is probably inefficient.
-
Divide and Conquer: Your Annual Financial Plan Made Easy, Courtesy of a Financial AdviserOverwhelmed by your financial to-do list? Split it into four quarters and assign each one goals that connect to the time of year. It could be life-changing.
