US close: Equities slide amid slew of earnings reports

At the close, the Dow Jones Industrial Average was down 0.71% at 31,761.54, as the S&P 500 lost 1.15% to 3,921.05 and the Nasdaq Composite was off 1.87% at 11,562.57.

The Dow closed 228.5 points lower on Tuesday, reversing gains recorded in the previous session.

“US markets faced a key session today, opening lower as the Fed meeting gets underway, as we look forward to the latest quarterly numbers from tech giants Microsoft and Alphabet after the bell,” said CMC Markets chief market analyst Michael Hewson.

“On the data front US consumer confidence in July came in at 95.7, falling from 98.4 in June, while new home sales fell again, by -8.1%, while the May numbers were revised lower to 6.3%”

Indeed on the economic front, the Conference Board's consumer confidence index fell to 95.7 in July, down 2.7 points from June, with the present situation index falling from 147.2 to 141.3 and the expectations index slipping from 65.8 to 65.3.

“The decrease was driven primarily by a decline in the Present Situation Index - a sign growth has slowed at the start of the third quarter,” said Lynn Franco, senior director of economic indicators at the Conference Board.

“The expectations index held relatively steady, but remained well below a reading of 80, suggesting recession risks persist.

“Concerns about inflation - rising gas and food prices, in particular - continued to weigh on consumers.”

Elsewhere, new home sales shrank 8.1% month-on-month in June to hit a seasonally adjusted annual rate of 590,000 in June, according to the Census Bureau, well below market expectations for a print of 660,000.

On another note, the Federal Housing Finance Agency's house price index increased to 398.1 points in May, up from April's downwardly revised print of 392.7 points.

Finally, the Richmond Fed's manufacturing index improved from a reading -9 to 0 in June.

Earnings were the session's primary focus again, with industrial giant 3M up 4.94% after posting second-quarter earnings and revenue that beat expectations on the Street, while also cutting full-year sales growth and adjusted earnings forecasts and revealing it was looking to spin off its healthcare business.

Coca-Cola added 1.64% after it lifted its full-year revenue guidance and posted a 12% rise in second-quarter revenues to $11.3bn, while Kimberly-Clark gained 0.41% after reporting second quarter profits that beat estimates and boosted sales and inflation forecasts.

General Electric jumped 4.61% after it posted higher quarterly earnings thanks to a recovery in the aviation industry, and McDonald's was 2.68% higher after delivering a 3% year-on-year contraction in second quarter revenues as a result of its exit from Russia and a weakened euro.

On the downside, discount retail giant Walmart tumbled 7.6% after issuing its second profit warning since May overnight, with the group saying profits were set to fall as much as 13% in 2022 as the rising cost of food and fuel continues to impact customer spending.

Defence contractor Raytheon Technologies slid 4.58% after it delivered second-quarter earnings that were better than expected, despite revenues coming in slightly short of estimates, and UPS lost 3.4% after it published earnings that topped views despite recession fears and lower shipping volumes.

General Motors was down 3.42% after its second quarter earnings missed estimates, as ongoing supply chain woes impacted profitability.

Alphabet, Microsoft, Chubb and Chipotle were meanwhile set to publish their latest quarterly numbers after the closing bell.

Reporting by Josh White at Sharecast.com. Additional reporting by Iain Gilbert.

Dow Jones - Risers

3M Co. (MMM) $140.75 4.94%
McDonald's Corp. (MCD) $257.09 2.68%
Coca-Cola Co. (KO) $63.21 1.64%
Amgen Inc. (AMGN) $251.14 0.97%
Merck & Co. Inc. (MRK) $91.27 0.84%
Johnson & Johnson (JNJ) $173.68 0.71%
Travelers Company Inc. (TRV) $160.86 0.55%
Unitedhealth Group Inc. (UNH) $531.59 0.40%
Verizon Communications Inc. (VZ) $44.92 0.36%
Walgreens Boots Alliance, Inc. (WBA) $38.85 0.26%

Dow Jones - Fallers

Walmart Inc. (WMT) $121.98 -7.60%
Salesforce.Com Inc. (CRM) $170.46 -3.85%
Nike Inc. (NKE) $105.20 -3.73%
Walt Disney Co. (DIS) $99.78 -2.83%
Microsoft Corp. (MSFT) $251.90 -2.68%
Home Depot Inc. (HD) $298.18 -2.60%
American Express Co. (AXP) $149.83 -2.57%
Goldman Sachs Group Inc. (GS) $318.55 -1.72%
JP Morgan Chase & Co. (JPM) $113.42 -1.56%
Cisco Systems Inc. (CSCO) $43.83 -1.15%

S&P 500 - Risers

Nektar Therapeutics (NKTR) $3.94 5.91%
3M Co. (MMM) $140.75 4.94%
General Electric Co. (GE) $71.51 4.61%
Archer-Daniels-Midland Co. (ADM) $78.92 4.36%
Fiserv Inc. (FISV) $102.22 4.25%
Alexandria Real Estate Equities Inc. (ARE) $156.49 4.13%
Newmont Corporation (NEM) $46.14 3.48%
F5 Inc. (FFIV) $159.31 3.17%
McDonald's Corp. (MCD) $257.09 2.68%
Pentair plc (PNR) $47.95 2.34%

S&P 500 - Fallers

Kohls Corp. (KSS) $26.32 -9.12%
Fortinet Inc. (FTNT) $56.26 -7.77%
Walmart Inc. (WMT) $121.98 -7.60%
Hanesbrands Inc. (HBI) $10.33 -7.44%
Carnival Corp. (CCL) $8.50 -7.41%
Macy's Inc. (M) $16.79 -7.24%
Svb Financial Group (SIVB) $364.99 -6.69%
Ralph Lauren Corp (RL) $90.63 -6.35%
Dollar Tree Inc (DLTR) $157.82 -6.29%
PVH Corp. (PVH) $58.03 -6.02%

Nasdaq 100 - Risers

Fiserv Inc. (FISV) $102.22 4.25%
Cadence Design Systems Inc. (CDNS) $170.75 1.84%
Vertex Pharmaceuticals Inc. (VRTX) $288.22 1.60%
Biogen Inc (BIIB) $210.85 1.58%
PACCAR Inc. (PCAR) $86.97 1.09%
Amgen Inc. (AMGN) $251.14 0.97%
Kraft Heinz Co. (KHC) $38.64 0.68%
Electronic Arts Inc. (EA) $130.75 0.64%
Comcast Corp. (CMCSA) $42.72 0.59%
Synopsys Inc. (SNPS) $339.41 0.52%

Nasdaq 100 - Fallers

Vodafone Group Plc ADS (VOD) $14.53 -6.62%
Dollar Tree Inc (DLTR) $157.82 -6.29%
Ross Stores Inc. (ROST) $77.96 -5.65%
Paypal Holdings Inc (PYPL) $77.04 -5.65%
Amazon.Com Inc. (AMZN) $114.81 -5.23%
Mercadolibre Inc. (MELI) $727.79 -4.59%
Meta Platforms Inc. (META) $159.15 -4.50%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $384.79 -4.10%
Tesla Inc (TSLA) $776.58 -3.57%
Costco Wholesale Corp. (COST) $511.93 -3.25%