US close: stocks tumble on underwhelming earnings
US stocks tumbled across the board on Tuesday as a raft of disappointing quarterly reports unnerved investors in the run up to results from tech giants Apple and Microsoft.
"The U.S. market is slightly overvalued at the moment, and will be more than slightly overvalued if revenue growth does not pick up," warned John Toohey, head of equities at USAA Investments. "We remain cautious regarding earnings because there is a lack of revenue growth," he added.
At close, the Dow Jones Industrial Average was 181 points lower at 17,919, while the S&P 500 was down 9 points to 2,119 and the Nasdaq fell 11 points to 5,208.
In what is an extremely quiet session on the economic data front, investors will focus on a number of corporate heavyweight earnings, with Apple, Microsoft, Yahoo! and GoPro reporting after the closing bell. The iPhone-maker is expected to post third quarter earnings per share of $1.81, up 41.4% from the previous quarter.
Oil prices staged a solid rebound, with West Texas Intermediate climbing 1.4% to $50.36 a barrel, while Brent rose 0.69% to $57.04 a barrel.
Gold futures lost further ground after Monday’s decline, falling 0.69% to $1,099.20, while the dollar dipped against the euro and yuan, but gained against the pound.
Tesla Motors was in the red as analysts at UBS downgraded their rating on the stock to 'sell' from 'neutral'.
International Business Machines plunged after falling short of expectations with its second-quarter results, while Verizon Communications edged lower after missing revenue estimates.
United Technologies slid after warning that sluggish growth in China and strong currency headwinds will weigh on its full-year profit.
Harley-Davidson surged after topping forecasts with its second-quarter earning, while Consol Energy rebounded from four days of losses.
Elsewhere, shares in Asia staged a turnaround on Tuesday after a negative start to the week due to a weaker commodities market. Europe's Stoxx 600 broke Monday's ninth session of consecutive gains, a record streak since April 2014.
S&P 500 - Risers
Peabody Energy Corp. (BTU) $1.20 +6.19%
CONSOL Energy Inc. (CNX) $17.55 +5.34%
Harley-Davidson Inc. (HOG) $57.67 +4.97%
Freeport-McMoRan Inc (FCX) $15.72 +4.45%
Newmont Mining Corp. (NEM) $18.74 +3.19%
Southwestern Energy Co. (SWN) $20.43 +3.13%
Harman International Industries Inc. (HAR) $109.25 +3.07%
Zions Bancorporation (ZION) $31.49 +3.01%
Halliburton Co. (HAL) $41.86 +2.80%
Bank Of New York Mellon Corp. (BK) $44.15 +2.72%
S&P 500 - Fallers
Allegheny Technologies Inc. (ATI) $21.67 -13.56%
Chesapeake Energy Corp. (CHK) $9.29 -9.54%
United Technologies Corp. (UTX) $102.71 -7.03%
TEGNA Inc (TGNA) $30.05 -6.65%
International Business Machines Corp. (IBM) $163.07 -5.86%
Pentair plc (PNR) $61.60 -3.87%
Rockwell Collins Inc. (COL) $88.91 -3.56%
Hasbro Inc (HAS) $80.42 -3.28%
Pitney Bowes Inc. (PBI) $20.57 -3.02%
Xerox Corp. (XRX) $10.59 -2.93%
Dow Jones I.A - Risers
Travelers Company Inc. (TRV) $104.48 +1.82%
Chevron Corp. (CVX) $93.90 +1.03%
Microsoft Corp. (MSFT) $47.28 +0.77%
Home Depot Inc. (HD) $113.86 +0.40%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $102.71 -7.03%
International Business Machines Corp. (IBM) $163.07 -5.86%
Verizon Communications Inc. (VZ) $46.97 -2.35%
Unitedhealth Group Inc. (UNH) $120.86 -1.46%
Intel Corp. (INTC) $28.72 -1.31%
Boeing Co. (BA) $145.00 -1.17%
General Electric Co. (GE) $26.85 -1.07%
Apple Inc. (AAPL) $130.71 -1.03%
Visa Inc. (V) $72.02 -0.94%
3M Co. (MMM) $155.76 -0.87%
Nasdaq 100 - Risers
Vimpelcom Ltd Ads (VIP) $5.20 +3.17%
CH Robinson Worldwide Inc (CHRW) $65.39 +2.70%
Nxp Semiconductors Nv (NXPI) $92.41 +2.67%
Check Point Software Technologies Ltd. (CHKP) $78.74 +2.23%
QUALCOMM Inc. (QCOM) $65.14 +2.12%
Netflix Inc. (NFLX) $112.51 +1.77%
Cognizant Technology Solutions Corp. (CTSH) $61.56 +1.77%
F5 Networks Inc. (FFIV) $118.27 +1.73%
Expeditors International Of Washington Inc. (EXPD) $45.75 +1.71%
Express Scripts Holding Co (ESRX) $93.44 +1.69%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $266.78 -5.48%
Discovery Communications Inc. Class A (DISCA) $31.82 -2.51%
Verisk Analytics Inc. (VRSK) $73.80 -2.30%
Dollar Tree Inc (DLTR) $79.82 -2.11%
Vertex Pharmaceuticals Inc. (VRTX) $130.97 -1.87%
Fastenal Co. (FAST) $41.44 -1.78%
Vodafone Group Plc ADS (VOD) $36.61 -1.61%
Xilinx Inc. (XLNX) $41.65 -1.42%
Intel Corp. (INTC) $28.72 -1.31%
Stericycle Inc. (SRCL) $133.42 -1.30%