Wall St broadly flat ahead of Big Tech earnings; UPS plummets
Spotify jumps after results
NXP Semiconductors weighs on chip stocks
Coca-Cola rises after lifting annual forecasts
GM beats Q2 expectations, raises forecast; shares dive
Indexes: Dow 0.08%, S&P 0.13%, Nasdaq 0.21%
Updated to 2:02 p.m. ET/1802 GMT
By Lisa Pauline Mattackal and David French
July 23 (Reuters) -Wall Street's main indexes remained largely unchanged heading into the afternoon on Tuesday, having given up initial gains fueled by buying of megacap namesahead of Alphabet and Tesla earnings.
Tesla TSLA.O and Alphabet GOOGL.O are set to kick off results from the so-called Magnificent Seven stocks after markets close. While the electric vehicle maker's dropped 1.5%, the Google parent's shares were up 0.8%.
Earnings from technology giants will be key in determining if 2024's record rally can be sustained, or if U.S. stocks are overvalued. The question of whether a rotation away from megacaps in favor of underperforming sectors will continue is also on investors' minds.
The small-cap Russell 2000 .RUT was up 0.9% on the day.
"You're looking at a scenario where (Big Tech) names are going to determine the direction of the market... So, if those names disappoint in any way whatsoever, markets will struggle," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
"Their valuations are expensive and we could run into a problem if they don't meet expectations."
The megacaps initially buoyed markets on Tuesday, with all three benchmarks trading in positive territory. However, despite most of the megacaps continuing to trade higher, the overall market advances ebbed away in the early afternoon.
Apple AAPL.O, Microsoft MSFT.O, Meta Platforms META.O and Amazon.com AMZN.O rose between 0.4% and 2.5%.
Helping subdue equity markets were disappointing earnings from household names.
United Parcel Service UPS.N, seen as a bellwether for the global economy, slumped 13.6% after missing earnings estimates on subdued package delivery demand and higher labor-contract costs. The stock was trading at its lowest in nearly four years.
General Motors GM.N dropped 6.5% despite a second-quarter results beat and a higher annual profit forecast, while Comcast CMCSA.O lost 2.2% after missing revenue estimates.
NXP Semiconductors NXPI.O slumped 9.3% after forecasting third-quarter revenue below estimates, dragging the Philadelphia SE Semiconductor index .SOX 1.4% lower.
Among others, Spotify SPOT.N jumped 11.5% after posting a record quarterly profit slightly ahead of expectations, while Coca-Cola KO.N rose 0.7% after it increased its annual sales and profit forecasts,
Of the 74 S&P 500 companies that have reported quarterly results during this earnings season, 81.1% have beaten expectations, according to LSEG data available on Monday.
By 2:02 p.m. ET (1802 GMT), the S&P 500 .SPX gained 7.09 points, or 0.13%, to 5,571.50 points, while the Nasdaq Composite .IXIC gained 38.25 points, or 0.21%, to 18,045.82. The Dow Jones Industrial Average .DJI rose 32.59 points, or 0.08%, to 40,448.03.
Economic data due to release this week includes the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, which will be crucial in gauging the monetary policy outlook against a backdrop of the recent inflation downtrend and signs the labor market is easing.
Bets of a 25-basis-point interest-rate cut by September have shot up to nearly 94%, from nearly 60% last month, according to CME's FedWatch Tool.
A Reuters poll showed the Fed is expected to cut rates twice this year, in September and December. The central bank's policymakers have said that resilient consumer demand warrants a cautious approach, despite easing inflation.
Magnificent Seven performance https://tmsnrt.rs/46j9n4G
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru and David French in New York; Editing by Marguerita Choy and Pooja Desai
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
