Wall Street Edges Lower Amid Tech Earnings, Gold Hits 1-Month Highs

Major US indices edged lower on Tuesday with the S&P 500 dipping 0.1% and the Nasdaq 100 slipping 0.5%. Weak corporate results weighed on sentiment, with Philip Morris International, Lockheed Martin, and General Motors reporting misses. Health care led sector gains, while tech stocks lagged. Treasury Secretary Scott Bessent said the US will meet with Chinese officials next week to continue trade negotiations. Gold climbed 0.9% to $3,420 per ounce, and Bitcoin rose 1.4% to $119,000.

The US stock market was mixed on Tuesday, with major indices edging lower. The S&P 500 (^GSPC) dipped 0.1% while the Nasdaq 100 (^IXIC) slipped 0.5%. Weak corporate results from Philip Morris International (PM), Lockheed Martin (LMT), and General Motors (GM) weighed on sentiment. Meanwhile, health care led sector gains, and tech stocks lagged. Treasury Secretary Scott Bessent announced plans to meet with Chinese officials next week to continue trade negotiations. Gold climbed 0.9% to $3,420 per ounce, and Bitcoin rose 1.4% to $119,000.

Key corporate results:

- Philip Morris International (PM): The company reported sales of $10,140 million for the second quarter, up from $9,468 million a year ago. Net income was $3,039 million compared to $2,406 million a year ago. Basic earnings per share from continuing operations were $1.95, up from $1.54 a year ago [2].
- Lockheed Martin (LMT): The company reported weaker-than-expected earnings amid supply chain and cost pressures.
- General Motors (GM): The automaker reported a 32% drop in Q2 profit, citing $1.1 billion in tariff-related costs. GM shares fell nearly 7% in early trading [3].

Trade tensions:

Treasury Secretary Scott Bessent revealed that the US will meet with Chinese officials next week to continue trade negotiations. He noted that August 1 represents a "pretty hard deadline" for all countries in trade negotiations, though he clarified that negotiations can continue after tariffs increase. The current deal with China expires on August 12 [4].

Market outlook:

Investors are closely watching for signals on whether a deal with key trading partners, including China and the European Union, can be reached to avoid further disruptions. With tech giants like Alphabet (GOOGL), Microsoft (MSFT), Tesla (TSLA), and Amazon (AMZN) yet to report, the market's next big moves will likely hinge on how well these leaders perform amid macroeconomic uncertainty.

References:

[1] https://finance.yahoo.com/news/live/stock-market-today-nasdaq-sp-500-slide-amid-wave-of-earnings-as-tariffs-bite-gm-profit-133541776.html
[2] https://www.marketscreener.com/news/philip-morris-international-inc-reports-earnings-results-for-the-second-quarter-and-six-months-ende-ce7c5cdddb8fff2c
[3] https://m.economictimes.com/news/international/us/us-stock-market-today-drops-dow-sp-500-and-nasdaq-tumble-as-gm-earnings-disappoint-and-tariff-jitters-shake-wall-street-medpace-soars-52-in-shock-rally/articleshow/122840168.cms
[4] https://www.investing.com/news/stock-market-news/treasury-secretary-bessent-sees-no-reason-for-powell-to-step-down-4145808