Stock market news for July 23, 2024

Stocks finished slightly lower on Tuesday.

The S&P 500 dipped 0.16% to close at 5,555.74, while the Nasdaq Composite inched down 0.06% to finish at 17,997.35. The Dow Jones Industrial Average lost 57.35 points, or 0.14%, to end at 40,358.09.

— Samantha Subin

The so-called Magnificent Seven will begin posting earnings Tuesday, with Alphabet and Tesla slated to report. These reports will be closely monitored given the recent market volatility. “In our view, a batch of better-than-expected reports could potentially stem the current selloff and spark a forceful bounce,” according to Wolfe Research.

The S&P 500 is down more than 1% in the past week. Alphabet and Tesla have lost 0.5% and 3%, respectively.

— Fred Imbert

HSBC strategist Alastair Pinder said the bull run in global equities can continue.

In a note to clients on Monday, Pinder listed the following five catalysts as potential drivers of upside in the second half of the year:

1. Earnings reports deliver
2. A “goldilocks” macro backdrop that can support valuations
3. Continued momentum in artificial intelligence
4. Better market breadth
5. Few signs of clear sell signals

Still, Pinder said to expect more limited returns in the latter half of 2024.

“In our conversations with clients we get the impression there’s a fixation on the downside risks,” Pinder said. “We believe the market is potentially overlooking five key upside catalysts.”

— Alex Harring

Shares of NXP Semiconductors dropped more than 9%, putting the Netherlands-based semiconductor company on pace for its worst session in more than four years.

The decline came on the heels of a second-quarter earnings miss. NXP Semiconductors posted adjusted earnings of $3.20 per share, falling short of a FactSet estimate of $3.21 per share. Revenue was in line with the $3.13 billion expected.

The Netherlands-based semiconductor company also shared weaker-than-expected guidance for the current quarter and a decline in second-quarter earnings and revenue from the year-ago period.

The popular 30-year mortgage rate dropping below 6% can help current homeowners feel comfortable moving once again, thus shoring up inventory, according to Ivy Zelman, executive vice president of Zelman & Associates.

Zelman said current homeowners feel their mortgages are too good to give up with today’s rates around 7%, creating a feeling of being “locked in.” But she said a drop to somewhere between 5% and 6% can make them feel better about moving, which can in turn increase the number of homes on the market.

“That disincentive in thinking, ‘Wow, I don’t really want to give up this low payment I have’ does give some pause,” she said on CNBC’s “The Exchange.”

With lower rates, they might instead say, “Oh, it’s not that much different, maybe … I can think about moving,” Zelman said. “It doesn’t feel so bad.”

— Alex Harring

Energy stocks are underperforming on Tuesday, struggling for a third straight day.

The Energy Select Sector SPDR Fund (XLE) was down 1.3% in afternoon trading, on track for a third straight losing session. The fund is now down in July as well.

Shares of Pentair soared around 9% during afternoon trading following the water treatment company’s second-quarter earnings beat, putting the stock on pace for a fresh record close.

Pentair’s all-time-high closing price currently sits at $85.44, which was set on March 28 after the stock gained about 0.5%. The stock also hit a new intraday high of $87.74 during Tuesday’s session.

Shares are up nearly 20% this year.

Tuesday’s debut of exchange-traded funds that hold ether is widely seen as a significant event for the crypto industry, although it may not see the success or fanfare that bitcoin ETFs did earlier this year.

“We think it’ll be about 20% as many flows [that] will go into the ether ETF in the first six months that went into bitcoin [ETFs],” Mike Novogratz, CEO of Galaxy Digital, said in a “Squawk Box” interview. He added that it is a significant development for crypto nevertheless.

For more on the initial challenges ether ETFs could face, read our full story on CNBC Pro.

— Tanaya Macheel

Two of the first major technology stocks to report earnings this season are diverging as investors get ready for their releases after Tuesday’s closing bell.

Google parent Alphabet added 0.6% in midday trading. The stock is higher by nearly 3% over the past two days.

On the other hand, electric vehicle maker Tesla slipped about 2% in the session. But that comes after the big jump on Monday, with shares still up more than 3% this week.

Though both stocks are part of the closely watched megacap technology cohort, they have performed much differently this year. Alphabet has soared more than 30% in 2024, while Tesla is just modestly above its flatline on the year after a recent rally.

— Alex Harring

Here are the stocks on the move midday:

• Spotify Technology — Shares surged 12% after the music streaming company posted better-than-expected second-quarter earnings. Gross margin and operating income also surpassed expectations. Analysts said they remain cautiously optimistic despite softness in monthly active user counts, pointing to strong margin performance and the company’s focus on premium subscribers and bundles.
• United Parcel Service — The package delivery company plunged more than 12%, hitting a new 52-week low, after posting a miss on both top and bottom lines in the second quarter. UPS reported $1.79 in earnings per share on $21.80 billion in revenue. Analysts polled by LSEG had estimated $1.99 in earnings per share and revenue of $22.18 billion. Shares were also headed for their worst day on record.
• MSCI — The stock popped more than 9% after the company reported second-quarter earnings that topped Wall Street’s estimates. MSCI posted earnings of $3.64 per share, excluding items, on revenue of $707.9 million. This is above the $3.55 in earnings per share on $696.4 million in revenue that analysts surveyed by FactSet were expecting.

Read the full list here.

— Sean Conlon

Shares of United Parcel Service sank more than 13% Tuesday on the heels of a disappointing second-quarter earnings report.

The package delivery company fell short of analysts’ expectations on the top and bottom lines and cut guidance for the year. UPS now expects revenue for 2024 to come in around $93 billion, versus a previous forecast for as much as $94.5 billion.

The company reported adjusted earnings of $1.79 per share on $21.8 billion in revenue. That fell short of an LSEG estimate calling for earnings per share of $1.99 and $22.18 billion in revenue.

Ether funds are now officially trading on exchanges in the U.S.

The price of ether fell slightly Tuesday morning. The cryptocurrency is up more than 50% on the year but does not seem to have had the same preemptive demand that bitcoin did ahead of the debut of its tracking funds.

Existing home sales declined in June even as the median sales price hit a fresh record high, the National Association of Realtors reported Tuesday.

Sales totaled 3.89 million on the month, a 5.4% decline on both a monthly and annual basis and below the Dow Jones estimate of 3.95 million.

However, the median sales price jumped 4.1% from a year ago to $426,900, the second straight month it has hit a new high and the 12th month in a row that the figure increased. Unsold inventory rose to the equivalent of 4.1%, the highest since May 2020.

— Jeff Cox

Stocks opened little changed on Tuesday.

The S&P 500 dipped 0.05%, while the Nasdaq Composite edged down 0.1%. The Dow Jones Industrial Average lost 60 points, or 0.15%.

— Samantha Subin

Shares of Coca-Cola were trending higher in premarket trading after the beverage giant beat expectations for the second quarter.

Coca-Cola reported 84 cents in adjusted earnings per share on $12.36 billion of revenue for the quarter. Analysts surveyed by LSEG were expecting 81 cents in earnings per share and $11.76 billion of revenue. Organic revenue grew 10% in North America year over year even as unit case volume dipped 1%.

The company also said it now expects organic revenue growth between 9% and 10% for the full year, up from a range of 8% to 9% previously, according to FactSet’s StreetAccount.

Services activity in the Philadelphia area showed its lowest level in more than a year during July, according to a survey released Tuesday.

The Philadelphia Federal Reserve’s nonmanufacturing index tumbled to a reading of -10 for the month, the lowest since April 2023 after hitting 15.1 in June. The index measures the percentage difference between companies reporting expansion against contraction.

Also in the survey, the new orders and sales indexes showed sharp drops, and the employment index plunged to -4.9, the first negative reading since June 2023.

— Jeff Cox

Check out the companies making headlines before the bell:

• Spotify Technology — The music streaming stock surged 13% after Spotify Technology posted second-quarter earnings that topped estimates. Gross margin also exceeded expectations, along with operating income.
• General Motors — The auto stock jumped 4.6% after General Motors easily topped second-quarter estimates. General Motors also said it is restructuring its struggling autonomous vehicle and China businesses.
• Coca-Cola Company — Shares of the beverage company rose 1.7% after a better-than-expected earnings report. Coca-Cola reported 84 cents in adjusted earnings per share on $12.36 billion of revenue. Analysts surveyed by LSEG were expecting 81 cents in earnings per share and $11.76 billion of revenue. The company also raised its full-year guidance for organic revenue.

Read the full list here.

— Sarah Min

UPS lost more than 7% after reporting a miss on both top and bottom lines in the second quarter.

The package delivery company reported $1.79 in earnings per share on $21.80 billion in revenue. Analysts polled by LSEG had estimated $1.99 in earnings per share and revenue of $22.18 billion.

Revenue in the U.S. domestic and international package segments missed consensus estimates. The company also said it expects $4.0 billion in capital expenditures in the full year, down from previous guidance of $4.5 billion and the $4.63 billion forecast by FactSet analysts.