U.S. stocks mixed, as investors brace for subdued Apple earnings

Stock market

Business, Investing

U.S. stocks were mixed on Tuesday, amid a slew of earnings releases and sharp declines in the Telecom sector, as investors braced for downbeat quarterly results from Apple Inc (NASDAQ:AAPL) and Twitter Inc (NYSE:TWTR) after the close of trading.

The Dow Jones Industrial Average fell 19.31 or 0.10% to 18,473.75, while the S&P 500 Composite index inched up 0.70 or 0.03% to 2,169.18, as each remained near all-time record highs. At session-lows, the Dow lost as much as 105 points. Although both the Dow and the S&P 500 have risen sharply since last month's historic Brexit decision, stocks on Wall Street have traded in a tight range in recent weeks. In fact, the Dow has failed to close 1% in a positive or negative direction from its previous day's settlement level in each of its last 12 sessions, dating back to July 11. Investors are taking a Wait-And-See approach with their trading patterns ahead of Wednesday's interest rate decision by the Federal Reserve and more broadly November's U.S. presidential election, analysts say.

On the S&P 500, five of 10 sectors closed in the red as stocks in the Telecom, Utilities and Consumer Goods sectors lagged. Stocks in the Industrials and Basic Materials industries led, each gaining more than 0.7% on the session. Telecom stocks plunged nearly 2%, afterVerizon Communications Inc (NYSE:VZ) reported mixed results for the second quarter. Although Verizon narrowly topped EPS forecasts of 0.92, the New York City-based wireless giant saw revenue decline 5.2% to $30.53 billion, amid lower-than-expected subscriber gains for the three-month period.

The NASDAQ Composite Index, meanwhile, added 12.42 or 0.24% to 5,110.05, moving closer to an all-time record high.

The top performer on the Dow was Caterpillar Inc (NYSE:CAT), which added 4.06 or 5.16% to 82.75 after the world's largest construction equipment manufacturer beat consensus estimates with its second quarter earnings. Shares in Caterpillar (NYSE:CAT) moved higher, even as the company lowered its full-year sales guidance due primarily to weakening demand in the mining sector. The worst performer was McDonald’s Corporation (NYSE:MCD), which tumbled 5.75 or 4.51% to 121.66. Earlier, the fast-food giant said its revenue fell 3.5% on the quarter to $6.27 billion, as its comparable store sales rose just 1.8% for the period. Analysts expected to see revenue of $6.24 billion on comp sales increases of 3.2%.

The biggest gainer on the NASDAQ was Linear Technology Corporation (NASDAQ:LLTC), which surged 14.06 or 29.01% to 62.53. Shares in Linear Technology (NASDAQ:LLTC) popped on Tuesday, as Analog Devices agreed to acquire the California-based high performance analog circuit manufacturer in a $14.8 billion cash-and-stock deal. The worst performer was Gilead Sciences Inc (NASDAQ:GILD), which plunged 7.44 or 8.40% to 81.11. In Monday's after-hour session, Gilead reported lower than expected revenues amid a 29% decline in sales among its blockbuster Hepatitis C drug Harvoni.

Apple shares fell 0.77% to 96.59 on Tuesday, briefly dipping below its 50-day moving average. Apple, one of the world's largest companies, is expected to report earnings per share of 1.38 on revenues of $42.1 billion in after-hours trading, down both at least 15% on a year-over-year basis. Analysts also expect to see soft demand in iPhone sales, ahead of the planned rollout of the iPhone 7 in September.

On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,805-1,165 margin.

Source Investing.com