S&P 500 snaps 8-day winning streak as investors digest latest earnings and await key inflation data
- The S&P 500 ended an 8-day winning streak on Tuesday as US stocks ended the day lower.
- The move came as investors digested earnings results and anticipated the release of key inflation data.
- Of the 90% of S&P 500 companies that have reported earnings so far, 81% are beating estimates.
US stocks closed lower on Tuesday, ending an eight-day winning streak for the S&P 500 as investors await the release of key CPI inflation data tomorrow.
The decline on Tuesday was led by the Nasdaq, which saw an outsized decline due to Tesla's worst single-day decline in 14-months. Other tech stocks that helped drag down the market include PayPal and Palantir, which both had earnings results that failed to impress investors.
But third-quarter earnings results have remained relatively strong. Of the 90% S&P 500 companies that have reported earnings so far, 81% are beating profit estimates by a median of 9%, and 72% are beating revenue estimates by an average of 5%, according to data from Fundstrat.
Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:
- S&P 500: 4,685.25, down 0.35%
- Dow Jones Industrial Average: 36,319.98, down0.31% (112.24 points)
- Nasdaq Composite: 15,886.54, down 0.6%
The rally in risk assets wasn't exclusive to stocks, as cryptocurrencies like bitcoin and ether neared record highs of $70,000 and $5,000, respectively. Both cryptocurrencies extended their win streaks to a fourth day in Tuesday trades.
Meanwhile, as investors seek to benefit from the continued growth in electric vehicles, one lingerie company is giving its shareholders the ability to gain exposure to the growing EV trend through its reverse merger with Cenntro Automotive. Shares of Naked Brands popped as much as 30% on the news.
Kimbal Musk sold $109 million worth of Tesla stock just before his cousin Elon Musk tweeted a poll about his potential sale of billions worth of shares.
Roblox soared as much as 27% on Tuesday after the online-gaming platform reported a doubling in revenue in its third-quarter earnings results.
Robinhood fell 4% after the online trading platform said it experienced a data breach last week that compromised the information of 7 million customers and included an extortion attempt by hackers.
Palantir fell as much as 10% after its fourth quarter profit margin guidance was below analyst estimates. The company continued to guide for long-term revenue growth of at least 30%.
Gold climbed as much as 0.27% to $1,833.00 per ounce.
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