US close: Stocks fall as PepsiCo kicks off earnings season

At the close, the Dow Jones Industrial Average was down 0.62% at 30,981.33, as the S&P 500 lost 0.92% to 3,818.80 and the Nasdaq Composite was off 0.95% at 11,264.73.

The Dow closed 192.51 points lower on Tuesday, piling onto losses recorded in the previous session as market participants braced for second quarter earnings and digested Covid-19 headlines coming out of China.

“While today has highlighted the declining consumer and investor mindset, this week marks the beginning of a period which focuses on the outlook from US businesses,” said IG senior market analyst Joshua Mahony.

“Rising interest rates have done little to lift bank valuations of late, and the expected downbeat outlook in the face of recession risks should keep that cap on the likes of JP Morgan and Morgan Stanley when they report on Thursday.”

On the macro front, the National Federation of Independent Business' small business optimism index fell to 89.5 in June, down from 93.1 in May for its lowest reading since January 2013.

It said 61% of small business owners surveyed said they expect business conditions to worsen over the next six months - the lowest level recorded in the survey's 48-year history.

In the corporate space, PepsiCo was down 0.57% even after it raised its full-year revenue guidance after posting better-than-expected quarterly profits and revenue.

Clothing giant The Gap was 5.02% weaker after it announced chief executive Sonia Syngal would leave the struggling retailer after just over two years.

The company, which also owns the Banana Republic, Old Navy and Athleta labels, also warned investors that rising input costs would see the squeeze on margins continue.

Software companies were in focus, with ServiceNow tumbling 12.74% after CEO Bill McDermott warned of macroeconomic pressures and currency concerns.

Sector peers were also in the red, with Intuit down 4.15% and Salesforce losing 4.61%.

On the upside, Boeing ascended 7.42% after the commercial aircraft giant hit its highest monthly delivery figure in more than three years in June.

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

Dow Jones - Risers

Boeing Co. (BA) $147.15 7.42%
Walgreens Boots Alliance, Inc. (WBA) $37.97 1.44%
3M Co. (MMM) $130.20 0.92%
Apple Inc. (AAPL) $145.86 0.68%
Verizon Communications Inc. (VZ) $50.78 0.55%
JP Morgan Chase & Co. (JPM) $112.97 0.10%
Intel Corp. (INTC) $37.21 0.03%
Honeywell International Inc. (HON) $230.94 0.00%
Dowdupont Inc. (DWDP) $30.52 0.00%
Walt Disney Co. (DIS) $93.60 -0.04%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $166.33 -4.61%
Microsoft Corp. (MSFT) $253.67 -4.10%
Travelers Company Inc. (TRV) $165.28 -1.92%
Chevron Corp. (CVX) $138.92 -1.83%
Johnson & Johnson (JNJ) $175.85 -1.40%
International Business Machines Corporation (CDI) (IBM) $139.18 -1.29%
Nike Inc. (NKE) $103.76 -1.28%
Dow Chemical Co. (DOW) $50.42 -1.16%
American Express Co. (AXP) $139.18 -1.00%
Cisco Systems Inc. (CSCO) $42.86 -0.90%

S&P 500 - Risers

American Airlines Group (AAL) $14.77 9.98%
United Airlines Holdings Inc (UAL) $38.23 8.09%
Carnival Corp. (CCL) $9.13 7.54%
Boeing Co. (BA) $147.15 7.42%
Delta Airlines Inc. (DAL) $31.09 6.15%
Mohawk Inds Inc. (MHK) $127.48 5.88%
Norwegian Cruise Line Holdings Ltd (NCLH) $11.60 5.84%
Bread Financial Holdings, Inc. (BFH) $40.59 4.83%
Southwest Airlines Co. (LUV) $38.54 4.64%
Twitter Inc (TWTR) $34.06 4.32%

S&P 500 - Fallers

National Oilwell Varco Inc. (NOV) $15.02 -5.95%
Helmerich & Payne Inc. (HP) $39.18 -5.91%
Apache Corp. (APA) $32.43 -5.20%
Gap Inc. (GPS) $8.32 -5.02%
Thermo Fisher Scientific Inc. (TMO) $530.93 -4.86%
Danaher Corp. (DHR) $252.70 -4.75%
Salesforce.Com Inc. (CRM) $166.33 -4.61%
FMC Technologies Inc. (FTI) $5.89 -4.54%
Fortinet Inc. (FTNT) $59.62 -4.27%
Intuit Inc. (INTU) $385.87 -4.15%

Nasdaq 100 - Risers

American Airlines Group (AAL) $14.77 9.98%
Wynn Resorts Ltd. (WYNN) $54.73 3.64%
Charter Communications Inc. (CHTR) $468.10 3.24%
Western Digital Corp. (WDC) $46.03 2.70%
Micron Technology Inc. (MU) $59.18 2.37%
Dish Network Corp. (DISH) $17.42 2.05%
Qurate Retail Inc. (QRTEA) $2.33 1.75%
Liberty Global plc Series A (LBTYA) $20.69 1.57%
Liberty Global plc Series C (LBTYK) $21.74 1.49%
Comcast Corp. (CMCSA) $39.75 1.48%

Nasdaq 100 - Fallers

Workday, Inc. (WDAY) $137.78 -5.33%
Intuit Inc. (INTU) $385.87 -4.15%
Microsoft Corp. (MSFT) $253.67 -4.10%
Synopsys Inc. (SNPS) $306.41 -2.79%
Autodesk Inc. (ADSK) $172.33 -2.48%
Check Point Software Technologies Ltd. (CHKP) $122.63 -2.40%
Cadence Design Systems Inc. (CDNS) $154.22 -2.31%
Amazon.Com Inc. (AMZN) $109.22 -2.26%
Adobe Systems Inc. (ADBE) $375.54 -2.24%
Verisk Analytics Inc. (VRSK) $174.08 -2.11%