Stocks fell in morning trading on Wall Street Tuesday as disappointing earnings reports weighed on technology and travel companies and investors await the latest updates on inflation.
The S&P 500 fell 0.4% as of 10:19 a.m. Eastern. The Dow Jones Industrial Average fell 17 points, or 0.1%, to 32,813 and the Nasdaq fell 1.3%.
Technology stocks fell broadly and weighed down the broader market. Chipmaker Micron Technology fell 4.1% after warning investors that revenue could fall short of forecasts because of weakening demand. That warning hit other chipmakers hard, with Nvidia shedding 3.6%.
Norwegian Cruise Line plunged 10.1% after reporting disappointing financial results and giving investors a weak revenue forecast. The weak results weighed down travel-related stocks. Expedia fell 1.9% and American Airlines fell 3.1%.
Energy stocks rose along with oil prices. U.S. crude oil prices rose 1.1% and Exxon Mobil rose 2.9%.
Audience rating company Nielsen surged 21% after it announced progress on a deal to be acquired by private equity firms.
Bond yields rose. The yield on the 10-year Treasury rose to 2.81% from 2.75% late Monday.
Investors have been closely watching the latest round of corporate earnings and the latest economic for more clues on how inflation is hurting consumers and businesses. The earnings season is beginning to wind down and Disney, Wendy’s and Wynn Resorts will be reporting quarterly results this week.
The U.S. Labor Department will release its July report for consumer prices Wednesday, followed by its producer prices report on Thursday. Investors and economists will look for any signs that the Federal Reserve’s aggressive rate hikes the past few months have helped to bring four-decade-high inflation under control.
The Fed has raised rates four times this year in an effort to hit the brakes on the economy and cool the hottest inflation in four decades. But, Wall Street is worried that the central bank could slam the brakes too hard and skid the economy into a recession. Last week’s strong July jobs report has most economists predicting the Fed will again raise short-term interest rates by as much as another three-quarters of a point at its September meeting.
