Stocks continued to climb higher Tuesday, with the Dow Jones Industrial Average extending its longest daily win streak since 2017.
Ahead of tomorrow's Fed decision – and a slew of earnings from Big Tech – investors today digested data on home prices and consumer sentiment, as well as a mixed batch of quarterly reports.
In today's economic news, the S&P CoreLogic Case-Shiller National Home Price Index was up 1.2% from April to May, marking its fourth straight month-over-month increase. Chicago, Cleveland and New York saw the biggest annual increases in home prices among the 20 cities surveyed, while Seattle and San Francisco saw the biggest decreases.
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.
Meanwhile, The Conference Board said its consumer confidence index rose to 117.0 in July, or its highest level in more than two years.
While the headline reading on consumer confidence "appears to have broken out of a trend that prevailed for much of the last year," said Dana Peterson, chief economist at The Conference Board, survey respondents "continued to report intentions to spend less on discretionary services – including travel, recreation and gambling – going forward."
3M climbs on Q2 beat; Raytheon sinks on engine troubles
On the earnings front, 3M (MMM, +5.3%) and General Electric (GE, +6.3%) were big winners after disclosing their second-quarter results. 3M, for its part, reported higher-than-expected earnings of $2.17 per share on revenue of $8.3 billion. The Post-It maker also raised its full-year outlook. Fellow industrial stock GE also benefited from a beat-and-raise report, which was driven in part by a 28% year-over-year surge in revenue from its aerospace business.
At the other end of the spectrum was Spotify Technology (SPOT, -14.3%). Just days after announcing price hikes, the music streaming service provider reported a wider-than-expected second-quarter loss of 85 cents per share. Revenue also missed analysts' mark.
Elsewhere, Raytheon Technologies (RTX), which said last week that it will officially change its name to RTX on July 28, tumbled 10.2%. The aerospace company reported higher-than-anticipated Q2 earnings and revenue, but said that a manufacturing defect requires it to remove a "significant" number of Pratt & Whitney engines from service.
As for the major indexes, the Dow closed up 0.08% at 35,438 to mark its 12th straight win. The S&P 500 rose 0.3% to 4,567, while the Nasdaq Composite added 0.6% to 14,144.
How to prepare for market volatility
Will stocks' hot streak continue? Only time will tell, but there are several potentially market-moving events on the near-term horizon that could throw a wrench in the uptrend. For one, we're smack in the middle of second-quarter earnings season with several heavy hitters ready to disclose their results over the next week or so. Facebook parent Meta Platforms (META), for instance, is on tomorrow's earnings calendar, and the stock popped nearly 14% after its Q1 results, pulling the rest of the market higher with it.
Additionally, there's tomorrow's Fed policy announcement. "Virtually everybody expects another hike out of the Fed on Wednesday," says Jeffrey Roach, chief economist at LPL Financial, but investors should brace for some extra volatility as the central bank crafts its messaging about future policy.
As we've mentioned before, there are ample strategies investors can use to protect their portfolios against market volatility. Hedging strategies involving options – particularly put options – can create a buffer against potential downside. Additionally, investors can seek out traditional safety plays, like those found among the best dividend stocks or the best low-volatility stocks, that can help balance out a portfolio during periods of uncertainty.
Related Content
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Why Playing It Safe in Retirement Is a Big RiskFear of losing money could actually cost you in retirement. Find out why being too conservative with your life savings can hurt you and how to stop that from happening.
-
Tax Refund Alert: House GOP Predicts 'Average' $1,000 Payouts in 2026Tax Refunds Here's how the IRS tax refund outlook for 2026 is changing and what steps you can take now to prepare.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
UNH Sparks a 408-Point Surge for the Dow: Stock Market TodayThe best available data right now confirm both a slowing employment market and a December rate cut, a tension reflected at the equity index level.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Stocks Sink with Meta, Microsoft: Stock Market TodayAlphabet was a bright light among the Magnificent 7 stocks today after the Google parent's quarterly revenue topped $100 billion for the first time.
