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Stock market today: Dow edged higher but S&P stumbled after deluge of earnings

Published 01/08/2023, 21:10
© Reuters.
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Investing.com -- The S&P 500 stumbled Tuesday, pressured by weakness in consumer stocks as investors digested the latest round of quarterly results.            

The S&P 500 fell 0.3%, the Dow Jones Industrial Average rose 0.2%, or 71 points, and the Nasdaq was down 0.4%.

Falling cruise stocks weigh on market

Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) slumped 12% after the cruise company’s third-quarter guidance fell short of estimates and overshadowed its better-than-expected second-quarter earnings.

The company forecast adjusted EPS of 70 cents a share in the third quarter, below estimates of 80 cents per share, stoking investor worry about demand.

The weaker guidance weighed on other cruise stocks including Carnival Corporation (NYSE:CCL).

Pfizer drags health care lower; Merck impresses

Pfizer Inc (NYSE:PFE) reported mixed quarterly results as earnings topped, but revenue fell short of estimates.

The company also cut its full-year revenue guidance warning of “near-term revenue challenges.”

Merck & Company Inc (NYSE:MRK), meanwhile, reported a narrower loss as second-quarter revenue topped analyst estimates, underpinned by the strength of its cancer drug Keytruda.

Uber and Cat shine on earnings stage

Uber Technologies Inc (NYSE:UBER) fell 5.7% after its third-quarter guidance overshadowed second-quarter results, missing analyst estimates on both the top and bottom lines. The company also reported its first quarter of free cash flow of over $1 billion and its first operating profit. 

Uber’s management's guidance for the third quarter “calls for adj. EBITDA in the range of $975mm to $1,025mm, ahead of the Street's $927mm forecast and above our $950mm estimate,” Wedbush said as it raised its price target on the stock to $55 from $52.

Jobs market shows signs of softness

On the economic front, the labor market looks to be easing after the number of job openings in June fell more than expected in June to 9.58 million, from 9.61M openings in May.

The signs of weaker labor demand are likely to be welcomed by the Federal Reserve and bolster expectations that rate hikes are unlikely to be resumed.

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