Mixed close for US stocks, chip stocks slump, notable winners Howmet Aerospace and PayPal

From Nasdaq: 2024-07-30 18:04:49

US stocks closed mixed on Tuesday, with the Dow Jones up +0.50%, the Nasdaq down -1.38%, and the S&P 500 down -0.50%. Early gains were erased by news of Israel’s military strike in Beirut. Notable winners included Howmet Aerospace (+12%), Stanley Black & Decker (+9%), and PayPal (+7%), while losers included Merck (-9%) and CrowdStrike (-9%).

US economic news was stronger than expected, with S&P CoreLogic home prices rising, Jun JOLTS job openings falling, and consumer confidence increasing. Major central banks are deciding monetary policy this week. The BOJ might raise rates, the Fed might cut in September, and the BOE could cut its bank rate.

Interest rates fell Tuesday with 10-year T-note yields down to 4.145%. European government bond yields also dropped. Eurozone GDP and consumer confidence beat expectations while German CPI was higher than expected. Swaps predict a -25 bp rate cut by the ECB next month.

Stock movers included CrowdStrike (-9%) and Merck (-9%) as top losers, while Howmet Aerospace (+13%) and PayPal (+8%) stood out among gainers. Earnings reports from companies such as F5 Inc (+12%), Stanley Black & Decker (+9%), and Gartner Inc (+5%) showed better-than-expected results.

This week, investors are keeping an eye on tech stocks, with earnings reports from Microsoft, Meta, Apple, Amazon, and more on the way. The market expects S&P 500 Q2 earnings to rise +9% y/y, with many companies beating earnings expectations but fewer beating revenue forecasts, signaling some weakness in sales performance.



Read more at Nasdaq: Broader Market Settles Mixed as Chip Stocks Slump