Day Traders Diary
The major averages closed mixed on Tuesday as investors parsed through the latest batch of corporate earnings reports for insight into the state of the economy. The Dow gained 104 points, or 0.3%, while the S&P 500 traded down 2 points. The Nasdaq Composite dipped 30 points or 0.27%.
Earnings season continued Tuesday with mixed results. 3M moved on disappointing guidance, while Union Pacific dipped after falling short of estimates. The unofficial start to big-tech results kicks off with Microsoft reporting after the bell.
"We've had two really strong days in the market in anticipation that the Fed's going to pause as we get into a busy week of earnings," said Victoria Fernandez, chief market strategist at Crossmark Global Investments. "But, the earnings that we saw yesterday and this morning are really mixed."
Fernandez expects stocks to trade in a tight range as the market absorbs the latest commentary on margins, inflation and the macro environment.
Tuesday's market moves come after a solid start to the week, with all the major averages coming off of back-to-back gains. On Monday, the Nasdaq Composite led with a gain of 2.01%. The S&P 500 and Dow added 1.19% and 0.76%, respectively.
The gains have come despite an underwhelming start to earnings season and more signs that the U.S. economy is slowing. Some investors hope these findings will prompt a pivot from the Federal Reserve when it meets at its policy meeting next week.
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