US stocks mixed as traders mull earnings
Wall Street stocks ended mostly lower on Tuesday amid a slew of corporate earnings results, while manufacturing sector data supported hopes that the central bank could skip another rate hike in September. US manufacturing activity contracted for a ninth straight month in July, according to the Institute for Supply Management, as the impact of higher interest rates rippled through the world's largest economy. While the Federal Reserve has embarked on a path of aggressive rate increases to cool demand and lower inflation, there is rising anticipation that its cycle of hikes may soon end. On Tuesday, the S&P 500 shed 0.3 percent to 4,576 while the Nasdaq fell 0.4 percent to 14,283. The Dow Jones gained 0.2 percent, ending at 35,630. The mixed showing came as drugmaker Pfizer posted a steep drop in profits on lower revenues relating to Covid – while trimming its full-year sales forecast – and ride-hailing firm Uber missed estimates. Pfizer shares ended 1.2 percent lower while those of Uber slumped 5.7 percent. "I don't want to read too much into it because the declines are relatively small," said Steve Sosnick of Interactive Brokers, referring to overall market movements. He added that many traders are incentivised to wait until later in the week, when earnings from Apple and Amazon are due, along with employment data. The market, he said, is in a "wait-and-see mode." Among other companies, shares in pharmaceutical giant Merck slipped 1.3 percent and construction equipment maker Caterpillar gained 8.9 percent after its results beat expectations. (AFP)