S&P 500 falls to start August as the busiest week of the earnings season continues: Live updates – CNBC

Investors continued to snap up tech stocks in July while dumping shares in more defensive sectors, according to E-Trade, a subsidiary of Morgan Stanley.

Information technology, consumer discretionary and communication services were the only sectors that saw net buying last month, as investors continued to shift toward mega-cap tech names such as Nvidia, Amazon and Alphabet, according to monthly sector data from the firm.

Of the eight other sectors that saw net selling, defensive sectors such as consumer staples suffered the steepest losses. The sector was down more than 21% in July, down from a near 4.9% decline in June.

“[Traders] are continuing to lean risk-on,” E-Trade’s Chris Larkin said in written commentary.

— Sarah Min

Despite some promising signs of easing inflation, it’s “too soon” to guarantee a soft landing scenario just yet, said Adam Phillips, managing director at EP Wealth Advisors.

“We’ve seen progress, that’s all well and good, but let’s not celebrate just yet,” he said. “There are still a lot of things that are up in the air.”

Phillips highlighted gas prices hovering near months-long highs among his reasons for caution, noting that policy acts with a lag and can take time work through the system and impact economic data.

— Samantha Subin

Shares of Coinbase dropped about 6% after a federal judge said some crypto assets are securities regardless of the context in which they are sold.

The opinion came from the same Manhattan federal court that handed down a ruling last month in the Securities and Exchange’s suit against Ripple, which said the opposite: that Ripple’s XRP is a security in certain situations but not in others. Coinbase shares rallied more than 24% the day of that ruling on optimism that it might prevail in its own battle with the SEC.

“While the prices of COIN shares and crypto altcoins jumped following Judge Torres’ Ripple
ruling on July 13, we argued that the enthusiasm arising from the decision could be short-lived due in part to questions about the logical underpinnings of the ruling raised in its aftermath by legal experts,” Mark Palmer, an analyst at Berenberg Capital Markets, said in a note Tuesday.

“Some observers suggested that COIN would be a significant beneficiary of Judge Torres’ ruling, while others, us among them, noted that it was a single ruling by a district judge, and that it did not represent a binding precedent,” he added.

— Tanaya Macheel

Deutsche Bank downgraded ZoomInfo Technologies to hold from buy after the data company reported a weak outlook for third-quarter revenue. 

The firm kept its $20 price target, which would imply a nearly 22% decrease from Monday’s close. Shares of ZoomInfo were down 24.6% on Tuesday.

“We are concerned by management’s persistent lack of visibility and a multiple (based on AH trading) that is not without downside risk,” Zelnick wrote. “While ZoomInfo is no doubt delivering tangible benefits for customers, we are a little surprised by its inability to command price like other software companies and see this likely feeding the bear narrative around competition (particularly at the lower end of the market).”

ZoomInfo reported Monday that it anticipates $309 million to $312 million in revenue, while analysts polled by Refinitiv had called for $326 million. ZoomInfo’s second-quarter revenue of $309 million also missed expectations, as analysts estimated $311 million.

— Pia Singh

ResMed advanced nearly 2% after RBC turned bullish on the health technology stock.

Analyst Craig Wong-Pan upgraded shares to outperform, noting a strong position in the sleep and respiratory markets in addition to an appealing risk-reward ratio. His price target for shares of $284 suggests that he thinks the stock could have another 27.7% upside. Shares have gained slightly more than 9% this year.

“Over the past few years, ResMed has been gaining share in the sleep market by launching new and innovative products. We expect ResMed to continue investing a significant amount into R&D that will maintain its leadership in new and innovative products,” he said, using an acronym for research and development.

— Alex Harring

The S&P 500 finished its fifth straight winning month with Monday’s close. If history repeats itself, that honorific could signal there’s more good news ahead.

On average, the index is also higher one, three, six and 12 months after the fifth winning month concludes, according to historical data analyzed by the Carson Group. And those performances are usually strong when compared against baseline S&P 500 data.

The S&P 500 has notched monthly win streaks of this length just 29 times since 1950, the data shows. More than nine times out of 10, the S&P 500 was higher a year later. It was up more than four times out of every five at the six-month point.

To be sure, it’s not a perfect science. In 2021, which was the last time a streak of this length was reached, the index was down nearly 12% a year later. And the last time before that, which was in 2020, the S&P 500 finished the next month almost 4% lower.

— Alex Harring

The yield on the benchmark 10-year Treasury note reached its highest level since early July.

The 10-year yield reached a fresh high of 4.049%, its highest point since July 10 when it yielded as high as 4.092%.

Meanwhile, the spread between the 2-year and 10-year Treasury hit a high of -86.0. That’s the highest level since July 13, when the spread was as much as -82.30.

— Gina Francolla, Sarah Min

Check out the companies making headlines in midday trading.

• Toyota Motor — Shares rose 1.7%, hitting a new 52-week high, after the company reported a revenue beat in the fiscal first quarter.
• Coinbase – Shares of the crypto exchange dropped 8% after a federal judge said some crypto assets are securities regardless of the context in which they are sold.
• ResMed — The health technology stock advanced 1.9% after RBC upgraded shares to outperform, citing an appealing risk-reward profile.
• Gap, American Eagle— Shares of Gap were up 2% during midday trading after Barclays upgraded the stock to overweight from equal weight.

Check out the full list here.

— Hakyung Kim

Credit card spending trends point to a positive second-quarter report from food delivery company DoorDash, according to Bank of America. Analyst Michael McGovern hiked his price target on the stock to $95 per share from $82 and reiterated his buy rating on the stock.

“BAC aggregated credit & debit card data for Online Restaurant Delivery spending shows that Online Restaurant spending (card not present) accelerated 2pts vs. May, reaching 6% Y/Y, with growth for the lower income cohort also accelerating to 8% Y/Y (vs. higher income cohort at +4%),” McGovern said in a note to clients.

DoorDash is set to report earnings after the market close on Wednesday.

— Jesse Pound

Norwegian Cruise Line tumbled more than 14% in Tuesday’s session as weak expectations for the current quarter outweighed a better-than-expected second financial report.

The company beat Wall Street expectations on both lines in the second quarter, posting 30 cents per share, excluding items, on $2.21 billion in revenue. Analysts surveyed by Refinitiv anticipated 27 cents earned per share on $2.17 billion.

But Norwegian said to expect earnings for the currently ongoing quarter to come in below where Wall Street has set its expectations. Competitor Royal Caribbean, meanwhile, raised its full-year earnings outlook above where analyst forecasted when reporting earnings last week.

Royal Caribbean took a relatively modest slide in Tuesday’s session, slipping 2.3%. Carnival Cruise Line fell 6.1%.

— Alex Harring, Seema Moody

Gap shares rose more nearly 2% in premarket trading after Barclays got off the sidelines on the retailer’s stock.

Analyst Adrienne Yih upgraded the retailer to overweight from equal weight. CNBC Pro subscribers can see her reasoning here.

— Alex Harring

Job openings moved lower in June, according to data from the Labor Department released Tuesday.

Employment openings totaled 9.58 million for the month, edging lower from the downwardly revised 9.62 million in May, the department said in its monthly Job Openings and Labor Turnover Survey. It marks the lowest level of openings since April 2021 and below the 9.7 million estimate from FactSet.

Layoffs also moved down to 1.53 million, after totaling 1.55 million in May.

— Jeff Cox

JetBlue Airways shares shed nearly 8% after the airline slashed its full-year outlook as more consumers choose to travel abroad.

The company said it now expects full-year earnings to range from 5 cents to 40 cents per share, down from a previous estimate of as much as $1. JetBlue also said it anticipates a loss for the current quarter and decline in revenue from a year ago.

Despite Tuesday’s stock move, the airline reported earning roughly in line with analysts expectations, posting EPS of 45 cents on $2.61 billion in revenue. Analysts polled by Refinitiv had expected EPS of 44 cents and $2.61 billion in sales.

JetBlue is also dealing with the fallout from the end of its partnership with American Airlines in the Northeast.

Other airline stocks moved lower on the news, with American, Delta Air Lines and United Airlines last down more than 3% each. Southwest Airlines lost 2.4%.

— Samantha Subin, Leslie Josephs

The ISM manufacturing PMI came in at 46.4, lower than the StreetAccount estimate of 46.9. This marks the ninth straight month the index has been in contractionary territory. (A number above 50 indicates expansion; one below 50 indicates contraction).

However, the print is an uptick from June’s 46 number.

“Demand remains weak but marginally better compared to June, production slowed due to lack of work, and suppliers continue to have capacity. There are signs of more employment reduction actions in the near term to better match production output,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said in a statement.

— Fred Imbert

Ten low-cost ETFs are getting even cheaper on Tuesday, according to State Street.

The asset manager is reducing fees for 10 members of its portfolio ETF suite. The 10 funds hold more than $70 billion in combined assets, led by the SPDR Portfolio S&P 500 ETF (SPLG) at roughly $20 billion in assets under management.

Check out the full list of funds impacted here.

— Jesse Pound

SoFi lost 2.5% before the bell on Tuesday after KBW said investors should sell the financial technology stock following its recent rally.

“We believe valuation has overshot the fundamental earnings outlook,” analyst Michael Perito said in a note to clients downgrading the stock to underperform from market perform.

CNBC Pro subscribers can read more here.

— Alex Harring

These are some of the stocks making the biggest moves before the bell:

Read the full list of stocks moving here.

— Pia Singh

Estee Lauder dipped more than 1% before the bell after Citi cautioned that challenges in its Asia business could spell bad news in the short term.

“We remain optimistic about the long-term revenue and margin opportunities at EL, but we expect weaker results over the next few quarters with negative incremental data points,” analyst Filippo Falorni said when downgrading the beauty company’s stock to neutral from buy.

CNBC Pro subscribers can click here to read the full story.

— Alex Harring