The Dow Jones Industrial Average closed at 26,379.28 on Tuesday with a loss of 205.49 points or -0.77%. The S&P 500 closed at 3,218.44 for a loss of 20.97 points or -0.65%. The Nasdaq Composite closed at 10,402.09 for a loss of 134.18 points or -1.27%. The VIX Volatility Index was higher at 25.44 for a gain of 0.70 points or 2.83%.
Tuesday’s market movers
U.S. indexes ended lower Tuesday as investors digested earnings releases and looked ahead to activity later in the week.
Earnings highlights included:
- Advanced Micro Devices (AMD, Financial): Revenue of $1.93 billion increased 26.1% year over year and beat estimates by $70 million. Second-quarter GAAP earnings of 13 cents per share beat estimates by 1 cents and non-GAAP earnings of 18 cents beat estimates by 1 cent.
- Visa (V, Financial): Revenue of $4.84 billion decreased 17.1% year over year and missed estimates by $10 million. Third-quarter GAAP earnings of $1.07 per share beat estimates by 3 cents and non-GAAP earnings of $1.06 beat estimates by 2 cents.
- Pfizer (PFE, Financial): Revenue of $11.8 billion decreased 11.0% year over year and beat estimates by $250 million. Second-quarter GAAP earnings of 61 cents and non-GAAP earnings of 78 cents beat estimates by 12 cents. Pfizer says it plans to possibly seek emergency use approval for a Covid-19 vaccine by October.
- McDonald's (MCD, Financial): Revenue of $3.76 billion decreased 29.6% year over year and beat estimates by $30 million. Second-quarter GAAP earnings of 65 cents missed estimates by 7 cents and non-GAAP earnings of 66 cents missed estimates by 10 cents.
- 3M (MMM, Financial): Revenue of $7.18 billion decreased 12.1% year over year and missed estimates by $110 million. Second-quarter GAAP earnings of $2.22 beat estimates by 41 cents and non-GAAP earnings of $1.78 missed estimates by 1 cent. Stock down 4.8% with investors disappointed over the revenue decrease despite higher expected demand for masks and cleaning supplies.
- OnDeck Capital (ONDK, Financial): Revenue of $80.5 million decreased 27.0% year over year and missed estimates by $8.86 million. Second-quarter GAAP earnings of 4 cents beat estimates by 15 cents and non-GAAP earnings of 23 cents beat estimates by 41 cents. Company is being bought and merged with Enova.
The Federal Open Market Committee started its two-day July monetary policy meeting, which will end tomorrow afternoon with a Jerome Powell press conference. On Capital Hill, Republicans released their opening plans for the next coronavirus relief stimulus. Another round of $1,200 stimulus payments are expected for August, but other areas of the plans will require a lot of negotiating.
Economic reports affecting market trading included the following:
- The S&P/Case-Shiller Home Price Index increased 0.4% in May and 3.7% year over year.
- The Conference Board’s Consumer Confidence decreased to 92.6 in July from 98.3.
- The Richmond Fed Manufacturing Index improved to 10 from 0.
- The Treasury held auctions for 42-day bills at a rate of 0.100%, 120-day bills at a rate of 0.110%, seven-year notes at a rate of 0.446% and two-year notes at a rate of 0.055%.
Across sectors, materials and energy led losses while real estate led gains. In the S&P 100, the following stocks led losses and gains:
- 3M (MMM, Financial) -4.93%
- Schlumberger (SLB, Financial) -2.69%
- Capital One (COF, Financial) -2.49%
- McDonald's (MCD, Financial) -2.48%
- Chevron (CVX, Financial) -2.12%
- DuPont (DD) -2.08%
- Duke Energy (DUK, Financial) 4.07%
- Pfizer (PFE, Financial) 3.43%
- Simon Property Group (SPG, Financial) 3.23%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,469.76 for a loss of 14.90 points or -1.00%. The S&P 600 closed at 855.41 for a loss of 6.42 points or -0.74%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,316.46 for a loss of 114.89 points or -1.10%. The Dow Jones U.S. Small-Cap Value Index closed at 6,977.31 for a loss of 17.96 points or -0.26%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,848.74 for a loss of 18.53 points or -0.99%; the S&P 100 at 1,477.10 for a loss of 9.00 points or -0.61%; the Nasdaq 100 at 10,532.50 for a loss of 141.87 points or -1.33%; the Russell 3000 at 1,879.67 for a loss of 13.43 points or -0.71%; the Russell 1000 at 1,786.32 for a loss of 12.45 points or -0.69%; the Wilshire 5000 at 32,830.67 for a loss of 227.47 points or -0.69%; and the Dow Jones U.S. Select Dividend Index at 595.30 for a loss of 2.09 points or -0.35%.
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