Nasdaq climbs to record high on chipmaker gains

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Nasdaq climbs to record high on chipmaker gains

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 12, 2019. REUTERS/Lucas Jackson

Reuters

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

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  • Major US indexes were mixed as gains in chipmakers drove the Nasdaq to an all-time high and disappointing earnings pulled down the Dow Jones Industrial Average.
  • Texas Instruments reported strong earnings for the second quarter on Tuesday, and indicated to investors the slowdown in demand stemming from the trade war might not last as long as anticipated.
  • Caterpillar, which is one of the 30 companies in the Dow, sank by 5% as its second-quarter earnings report signaled slowing growth in China.
  • Visit the Markets Insider homepage for more stories.

US stocks were mixed on Tuesday as the Dow Jones Industrial Average slid on weak corporate earnings and the Nasdaq rose to a record high thanks to gains in chipmaker stocks.

Texas Instruments jumped by 7.5% after surpassing second-quarter earnings expectations and assuring investors that the decrease in microchip demand from the trade war would not last as long as previously expected. Other chipmakers including AMD, Qualcomm, and Intel rose as much as 3% on the news. The iShares PHLX Semiconductor ETF, which tracks major chipmakers, increased by 3.05%.

Here's a look at today's closing numbers:

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Caterpillar fell by as much as 5% on Tuesday after its second-quarter earnings report signaled slower growth in China due to the trade war with the US. The company is one of the 30 stocks in the Dow and as a maker of large industrial equipment, its earnings are often used as a barometer of the global economy's strength.

Hasbro posted better-than-expected 2Q earnings, fueled by the toy maker's partnership to make action figures for Disney's Marvel Studios. Shares rose as much as 9% on Tuesday to an all-time high.

Snap Inc. soared as much as 16% after it recorded its strongest user growth since 2016 during the second quarter of 2019. Several Wall Street banks increased their price targets for the stock based on a better outlook for its ad business.

Within the S&P 500, these were the largest gainers:

And the largest decliners:

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The Communications and Financials sectors saw the biggest increases in the S&P 500 index on Tuesday. Consumer staples fell by 0.58%.

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