Stocks experienced a mixed day on Tuesday, with the major indexes showing slight movement while the Nasdaq took a breather after hitting a high on Monday. Looking ahead, Nvidia is preparing for its earnings announcement on Wednesday, while Palo Alto Networks saw a decline following its earnings report.
The Dow Jones Industrial Average saw a modest 0.1% increase, remaining below the 40,000 level. The S&P 500 also rose by 0.1%, while the Nasdaq remained flat after reaching a record high the previous day. In contrast, the small-cap Russell 2000 dropped around 0.2%.
It’s important to note that volume decreased on both the Nasdaq and the New York Stock Exchange compared to Monday’s session. Among exchange traded funds, Invesco QQQ Trust and Innovator IBD 50 ETF experienced minor declines.
Nvidia’s stock dipped slightly ahead of its earnings report, with analysts anticipating significant year-over-year growth in both earnings and sales. Investors will be closely watching the company’s outlook for the second quarter, which is expected to show strong growth.
On the other hand, Palo Alto Networks saw its stock plummet nearly 4% after reporting earnings that slightly exceeded estimates but missed on billings. The company’s outlook for the upcoming quarter was in line with expectations, but concerns over slowing growth impacted its stock price.
In the retail sector, Lowe’s initially saw gains after surpassing earnings and sales estimates but later lost more than 3% due to lower sales on higher priced items. Macy’s faced a similar situation, with a decline in same-store sales but raised forecasts for full-year adjusted earnings and revenue.
In the electric vehicle industry, XPeng surged around 12% after reporting better-than-expected first-quarter results and providing optimistic projections for the second quarter. Zoom Video Communications also experienced a slight gain following its earnings report, despite a lower-than-expected outlook for the upcoming quarter.
Overall, the stock market exhibited a mix of gains and losses on Tuesday, reflecting the ongoing volatility and uncertainty in the market. Investors should closely monitor earnings reports and company outlooks to make informed decisions.
