US close: Stocks slip as investors prep for Q2 earnings

At the close, the Dow Jones Industrial Average was down 0.52% at 31,173.84, as the S&P 500 lost 1.15% at 3,854.43 and the Nasdaq Composite was off 2.26% at 11,372.60.

The Dow closed 164.31 points lower on Monday, extending losses recorded in the previous session.

“US markets have followed markets in Europe lower, with the main focus this week on the latest US consumer price index report, which is expected to see headline CPI reach a new 40 year high, close to 9%,” said CMC Markets chief market analyst Michael Hewson.

Covid-19 was in focus on Monday, with Shanghai declaring its first case of the BA.5 subvariant, forcing Macau to close its casinos for a week.

Also drawing an amount of investor attention was the yield on the two-year Treasury note, trading above its 10-year counterpart in an inversion many see as a recession indicator.

In equities, the primary focus early in the session was news that Elon Musk had opted to terminate a deal worth $44bn to buy social media giant Twitter.

The tech billionaire alleged that Twitter had been dishonest regarding the number of bots and fake accounts on the platform.

“On the downside Twitter shares are back in focus, opening sharply lower after Friday’s reports that Elon Musk is pulling the plug on the $44bn deal for the social media company,” CMC’s Michael Hewson said earlier.

“With Twitter set to bring legal action against Musk, the stage appears to be being set for a messy legal battle with Musk saying that Twitter needs to be more transparent with its user data and that its assessment that only 5% of its total users are bots is a massive underestimation.”

Shares in Twitter were 11.3% weaker by the close, with other tech plays following suit, as Facebook parent Meta Platforms slid 4.68% and streaming behemoth Netflix ended the day 5.15% weaker.

No major corporate earnings or data points were scheduled for release on Monday but PepsiCo, Delta Air Lines, JPMorgan Chase, Morgan Stanley, Wells Fargo and Citigroup were all set to report before the end of the week.

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

Dow Jones - Risers

Merck & Co. Inc. (MRK) $94.30 1.64%
Visa Inc. (V) $205.06 0.73%
Procter & Gamble Co. (PG) $146.05 0.70%
International Business Machines Corporation (CDI) (IBM) $141.00 0.38%
3M Co. (MMM) $129.22 0.23%
Walmart Inc. (WMT) $125.45 0.04%
Johnson & Johnson (JNJ) $178.35 0.04%
Verizon Communications Inc. (VZ) $50.50 0.02%
McDonald's Corp. (MCD) $253.28 0.02%
Honeywell International Inc. (HON) $230.94 0.00%

Dow Jones - Fallers

Nike Inc. (NKE) $105.11 -2.61%
Walt Disney Co. (DIS) $93.64 -2.32%
Caterpillar Inc. (CAT) $175.02 -2.28%
Intel Corp. (INTC) $37.20 -2.08%
Boeing Co. (BA) $136.99 -1.50%
Apple Inc. (AAPL) $144.87 -1.48%
JP Morgan Chase & Co. (JPM) $112.86 -1.31%
Microsoft Corp. (MSFT) $264.51 -1.18%
Goldman Sachs Group Inc. (GS) $293.18 -1.11%
Chevron Corp. (CVX) $141.51 -0.88%

S&P 500 - Risers

Perrigo Company plc (PRGO) $41.99 2.17%
Martin Marietta Mtrl (MLM) $313.58 2.00%
Duke Energy Corp. (DUK) $107.96 1.94%
Merck & Co. Inc. (MRK) $94.30 1.64%
Citrix Systems Inc. (CTXS) $100.75 1.54%
Sherwin-Williams Co. (SHW) $241.96 1.54%
Williams Companies Inc. (WMB) $31.76 1.40%
Assurant Inc. (AIZ) $177.49 1.37%
Globe Life Inc. (GL) $100.51 1.25%
American Tower Corp (Reit) (AMT) $257.99 1.17%

S&P 500 - Fallers

Twitter Inc (TWTR) $32.65 -11.30%
Nektar Therapeutics (NKTR) $3.53 -7.83%
Dish Network Corp. (DISH) $17.07 -6.92%
Wynn Resorts Ltd. (WYNN) $52.81 -6.46%
Carnival Corp. (CCL) $8.49 -5.77%
Royal Caribbean Cr (RCL) $32.59 -5.37%
Netflix Inc. (NFLX) $177.34 -5.15%
Norwegian Cruise Line Holdings Ltd (NCLH) $10.96 -4.94%
Macy's Inc. (M) $17.07 -4.74%
Meta Platforms Inc. (META) $162.88 -4.68%

Nasdaq 100 - Risers

Citrix Systems Inc. (CTXS) $100.75 1.54%
Kraft Heinz Co. (KHC) $38.61 0.63%
Incyte Corp. (INCY) $80.96 0.60%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $383.27 0.48%
Hologic Inc. (HOLX) $71.42 0.06%
Cerner Corp. (CERN) $94.92 0.00%
Xilinx Inc. (XLNX) $194.92 0.00%
Celgene Corp. (CELG) $108.24 0.00%
Shire Plc Ads (SHPG) $179.20 0.00%
Mylan Inc. (MYL) $0.00 0.00%

Nasdaq 100 - Fallers

Dish Network Corp. (DISH) $17.07 -6.92%
Mercadolibre Inc. (MELI) $659.92 -6.87%
Tesla Inc (TSLA) $703.03 -6.55%
Wynn Resorts Ltd. (WYNN) $52.81 -6.46%
Trip.com Group Limited (TCOM) $24.51 -6.31%
Qurate Retail Inc. (QRTEA) $2.29 -6.15%
Baidu Inc. (BIDU) $143.73 -5.69%
Netflix Inc. (NFLX) $177.34 -5.15%
NetEase Inc. Ads (NTES) $86.71 -4.68%
Meta Platforms Inc. (META) $162.88 -4.68%