Market Fluctuations on Mega-cap Earnings Reports
The U.S. stock markets were displaying an unstable trend as investors grappled with a raft of mega-cap earnings reports and anticipated economic data set to lay the groundwork for the Federal Reserve's forthcoming meeting. By 13:41 GMT, the Dow Jones Industrial Average had risen slightly by 71 points or 0.2%, while the S&P 500 was down by 0.2% and the NASDAQ Composite decreased by 0.5%.
Pharma Giants Announce Mixed Earnings
In the pharmaceutical sector, Merck & Company (NYSE: MRK) and Pfizer (NYSE: PFE) announced mixed results on Tuesday. Merck's shares rose 1.2% following an upward revision of its full-year profit projection after a smaller-than-anticipated loss for the quarter. Pfizer, on the other hand, disappointed the market by falling short of revenue expectations, resulting in a 0.4% fall in share value.
Uber Stocks Decline Despite Positive Forecast
In the technology sector, Uber Technologies (NYSE: UBER) shares slumped 3%, despite the ride-hailing company's positive forecast for the third quarter's operating profit.
Federal Reserve Watches Labor Market Data Closely
The Federal Reserve (Fed) is paying close attention to the labor market data for indications of easing tight conditions, avoiding a massive job loss scenario. The main economic report of the week is Friday's job report for July. Although the Fed won't convene on interest rates until September, they will discuss the second half outlook during their annual conference in late August in Jackson Hole, Wyo.
Rate Hike Speculations Spur NASDAQ Growth
Speculations that the Fed may be at or nearing the end of its rate hikes have propelled stocks this year, causing the Nasdaq to skyrocket 37%.
Arista Networks Leaps Amidst Earnings Fears
Other notable earnings reports included JetBlue Airways (NASDAQ: JBLU), whose shares plummeted more than 6% after downgrading its annual profit forecast. In contrast, Arista Networks (NYSE: ANET) saw its shares leap over 15% despite apprehensions of a spending slowdown, thanks to surpassing expectations.
Oil and Gold Futures Dip
On the commodities front, Crude Oil WTI Futures declined 1% to $81.02 a barrel, Brent Oil Futures dropped 0.9% to $84.66 a barrel, and Gold Futures fell 1.3% to $1,982.