S&P 500 cuts losses as earnings season heats up ahead of Microsoft earnings
By Yasin Ebrahim
Investing.com -- The S&P 500 cut the bulk of losses Tuesday, but investors had to contend with wild swings as tech took a breather and investors digested a slew of mixed quarterly results ahead of earnings from Microsoft.
The S&P 500 was flat, Dow Jones Industrial Average gained 0.3%, or 107 points, and the Nasdaq Composite was down 0.24%.
Tech was roughly unchanged on the day as gains in Apple (NASDAQ: AAPL ) were offset by a wobble in Alphabet (NASDAQ: GOOGL ) as the latter attracted further regulatory scrutiny.
The U.S. Justice Department filed a lawsuit against Google, alleging that the search-engine giant violated antitrust laws by abusing its monopoly in ad technology.
Chip stocks gave back some gains from a day earlier on struggles in Advanced Micro Devices (NASDAQ: AMD ) as Bernstein downgraded the chipmaker to Market Perform from Outperform, citing weakness in the personal computer and new parts markets.
The sluggish direction in tech comes just as Microsoft Corporation (NASDAQ: MSFT ) and chip bellwether Texas Instruments Incorporated (NASDAQ: TXN ) are set to report quarterly results after the closing bell.
Industrials, however, helped the broader market cut the bulk of its intraday losses, led by an 8% surge in PACCAR Inc (NASDAQ: PCAR ) after the track manufacturing firm reported quarterly results that beat on both the top and bottom lines.
Defense companies including Raytheon (NYSE: RTN ) Technologies Corp (NYSE: RTX ) and Lockheed Martin Corporation (NYSE: LMT ) also underpinned gains in the sector following the latter’s quarterly results that topped estimates.
Elsewhere on the earnings front, material maker 3M Company (NYSE: MMM ) slumped more than 4% after quarterly earnings missed estimates and the company flagging a slowdown demand announcing 2,500 layoffs.
Zions Bancorporation (NASDAQ: ZION ), meanwhile, fell nearly 2% as its better-than-expected fourth-quarter earnings per share was offset by a gloomy outlook as CEO Harris Simmons said the bank was socking away more money to protect against a slowing economy.
In meme-related news, Bed Bath & Beyond (NASDAQ: BBBY ) continued to put the squeeze on short sellers, rallying more than 11% even as the retailer is widely expected to be on the brink of bankruptcy.
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