U.S. stocks were wobbly on Tuesday as investors awaited major earnings reports from companies including Microsoft (MSFT) and the Federal Reserve began its interest rate setting policy meeting.
The S&P 500 (^GSPC) rose slightly, while the tech-heavy Nasdaq Composite Index (^IXIC) fell 0.2% after the major indexes traded lackluster. The Dow Jones Industrial Average (^DJI) rose 0.4%.
The stock market is in the midst of a critical week with the Fed decision, July jobs data and earnings reports from four of the “Magnificent Seven” large-cap stocks. All of this will be crucial for investors as they weigh high hopes for a rate cut against concerns that Big Tech companies have lost steam and wonder if the recent sell-off in stocks is over.
All eyes are now on Microsoft’s quarterly report, which will be released after the close of trading and will provide the basis for the results of Apple (AAPL), Amazon (AMZN) and Meta (META) in the coming days.
Wall Street is watching closely for signs that big AI investments are starting to pay off, especially after investors shifted from big tech companies to smaller stocks and a volatile July stock market that highlighted the risks of AI trading.
Drugmakers Merck (MRK) and Pfizer (PFE) reported their quarterly results before the market opened, as did consumer goods giant Procter & Gamble (PG), while coffee shop chain Starbucks (SBUX) and semiconductor giant AMD (AMD) are scheduled to report their results after the market close.
A notable theme has emerged this earnings season: Investors are eager to back underperforming companies that signal they will see a turnaround soon.
Read more: 32 charts that tell the story of today’s markets and economy
Meanwhile, the Federal Reserve began its July policy meeting on Tuesday. Policymakers are not expected to make any changes to borrowing costs on Wednesday, but they will be setting the stage for a rate cut in September. After strong inflation data in June, market discussions have focused on the timing and number of rate cuts this year.
Live2 Update
Tuesday, July 30, 2024 at 7:10 a.m. PDT
Job openings remain steady in June, while job losses are at lowest level since November 2020
Job openings were little changed in June, down slightly from the previous month, as investors watched for signs of further cooling in the labor market.
New data released Tuesday by the Bureau of Labor Statistics showed there were 8.18 million job openings at the end of June, down from 8.23 million in May.
The May figure was revised up from an initially reported figure of 8.14 million job openings. Economists surveyed by Bloomberg had expected the June report to show 8 million job openings.
According to the Job Openings and Labor Turnover Survey (JOLTS), 5.3 million jobs were added during the month, down slightly from May. The employment rate fell to 3.4% from 3.6% in May.
Also reported on Tuesday was the job separation rate, a gauge of worker confidence, which rose to 2.1% for the second straight month. The 3.28 million people who left the workforce in June was the lowest monthly figure since November 2020.
Tuesday, July 30, 2024 at 6:32 a.m. PDT
Stocks rise ahead of Federal Reserve meeting as investors await Microsoft earnings
Stocks rose on Tuesday morning as investors digested further gains and Federal Reserve officials were set to begin a two-day policy meeting.
The S&P 500 (^GSPC) rose 0.2% and the tech-heavy Nasdaq Composite Index (^IXIC) added 0.3% after a weak performance in the major indexes the previous trading day. The Dow Jones Industrial Average (^DJI) rose 0.2%.
Pfizer (PFE) raised its full-year outlook, and Merck (MRK) beat second-quarter profit expectations.
Investors will be keeping an eye on Microsoft’s (MSFT) quarterly results, which are due to be released after the market close on Tuesday. Coffee giant Starbucks (SBUX) is also scheduled to report results after the close.
This is a big week for markets, with the Federal Open Market Committee meeting for two days and an interest rate decision scheduled for Wednesday afternoon, as investors expect Fed officials to prepare for a rate cut in September.
Meanwhile, the monthly employment report is due to be released before the market opens on Friday.