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U.S. stocks were wobbling as investors take in megacap earnings

Published 01/08/2023, 15:02
Updated 01/08/2023, 16:11
© Reuters.
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Investing.com -- U.S. stocks were wobbling as investors digested a slew of megacap earnings reports and awaited economic data that could set the stage for the Federal Reserve’s next meeting.

At 11:01 ET (15:01 GMT), the Dow Jones Industrial Average was up 17 points or 0.1%, while the S&P 500 was down 0.3% and the NASDAQ Composite was down 0.4%.

Pharmaceutical giants report mixed results

Pharmaceutical giants Merck & Company (NYSE:MRK) and Pfizer (NYSE:PFE) reported mixed results on Tuesday. Merck raised its full-year profit outlook after a smaller-than-expected loss for the quarter, while Pfizer fell short of revenue expectations. Shares of Merck rose 0.1%, while shares of Pfizer rose 1%.

Ride-hailing platform Uber Technologies (NYSE:UBER) fell 6% after guiding for better-than-expected third quarter operating profit.

After tonight’s closing bell, Advanced Micro Devices (NASDAQ:AMD), Starbucks (NASDAQ:SBUX) and Pinterest (NYSE:PINS) will report.

Fed eyes data on labor market

The ISM manufacturing survey for July was a reading of 46.4, which was below the 46.8 expected. The June job opening reports came in at 9.582 million, also below expectations for 9.61 million. 

The big economic report this week is Friday’s job report for July. The Fed, which has been trying to guide the economy to a soft landing, will be watching labor market data for signs the tight conditions are easing but without sparking massive job losses.

The Fed doesn’t meet again on interest rates until September but will meet at its annual conference in late August in Jackson Hole, Wyo., where policymakers could give more details on their thinking for the second half outlook. 

Expectations that the Fed could be at or near the end of its rate increases have lifted stocks this year, sending the Nasdaq soaring 37%.

Arista Networks jumps after beating expectations

In other earnings, JetBlue Airways. (NASDAQ:JBLU) fell more than 9% after cutting its forecast for annual profit, while Arista Networks (NYSE:ANET) shares bounced over 17% after beating expectations despite fears of a slowdown in spending.

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