S&P 500 and Nasdaq plunge as Wall Street assesses key retail earnings from Walmart and Home Depot

Tech stocks fell on Tuesday, led by shares of semiconductor names such as Nvidia, Applied Materials and Qualcomm, which fell more than 1% each. Big tech stocks, including Apple, Meta Platforms, Netflix and Microsoft, also dipped into negative territory.

The S&P 500 information technology sector was last down almost 1%. Meanwhile, consumer staples rose 1%, boosted by shares of Walmart and Kroger.

— Samantha Subin

Natural gas prices jumped on Tuesday as parts of the United States grapple with high summer temperatures. US futures added 5.55% to trade at $9.21 per million British thermal units.

In Europe, futures contracts advanced 7% to 244.4 euros per megawatt hour. The gain comes after the contract closed at a record high on Monday, amid the continent’s worsening energy crisis.

You can count Jeremy Siegel among the group feeling more optimistic about the US economy and the stock market after the July economic data release.

The Wharton professor said on CNBC’s “Squawk Box” that he’s growing confident the Fed will pull off a “soft landing” and stocks appear to be on solid footing after an early start to a slump. difficult year.

“I think the market has it here, I think June will be a bottom and I think the second half will be pretty good,” Siegel said.

Check out more analysis from Siegel on CNBC Pro.

—Jesse Pound

The Dow Jones rose 34 points on Tuesday, or 0.1%, led by gains at Walmart and Home Depot, which jumped more than 1% and 5%, respectively. The S&P 500 slid 0.14%, while the Nasdaq Composite edged down 0.44%.

— Samantha Subin

Industrial production rose more than expected in July at a time of growing concerns over the US manufacturing sector.

The measure of activity in the manufacturing, mining, and electric and gas utilities sectors rose 0.6% on the month, versus 0.3% according to the Dow Jones estimate, according to Federal Reserve data on Tuesday. Manufacturing was particularly strong, up 0.7% after falling for two straight months.

The numbers come the day after a stunning fall in the New York Fed’s Empire Manufacturing Index, which tumbled 42 points to a reading of minus-31.3.

However, national figures show activity 3.9% higher than its level in the same period a year ago.

Also on Tuesday, the Fed said capacity utilization stood at 80.3%, slightly above the estimate. The metric calculates the level of output relative to full potential, and the current reading is 0.7 percentage points above its long-term average, according to the Fed.

—Jeff Cox

Stock futures slid before the market opened on Tuesday. Dow-linked futures were last down 59 points, or 0.17%. S&P 500 and Nasdaq 100 futures fell 0.23% each.

— Samantha Subin

A fresh batch of economic Tuesday morning shows that the housing market industry is still under pressure.

Housing starts totaled 1.446 million in July, down 9.6% from June, according to the Department of Commercet. Economists polled by Dow Jones were looking for 1.52 million on the number of housing starts, which would have been a drop of 2.5%.

Regarding building permits, they totaled 1.674 million, a decrease of 1.3% compared to a month ago. However, this was a little better than the 3.3% estimate.

Construction has slowed as mortgage rates and construction costs have soared this year. The housing crisis has weighed on broader economic growth, as the industry contributes over 15% of the national GDP.

—Jeff Cox

Zoom fell 3% in Tuesday’s premarket trading after Citi downgraded the stock sell from neutral. Shares of the video conferencing platform are down 38% this year as the company struggles to maintain momentum from its pandemic highs.

—Sarah Min

Almost all professional investors are looking for lower inflation over the next year and have stocked up on US equities, according to the latest Bank of America Fund Manager Survey.

Some 88% of respondents said they see inflation coming down and “fear of drastic rate hikes easing”, said Michael Hartnett, BofA’s chief investment strategist. After the market rally in July, there was a “great [August] rotation to US equities/tech/consumer non-commodities/utilities/UK. »

The consumer price index was stable in July 8.5% more than a year ago but stable month-over-month, raising hopes that the price spike may subside.

However, Hartnett added that the portfolio manager’s positioning is still “long stagflation” or slow growth with relatively high inflation. This means that allocations are still biased towards commodities, cash and defensive stocks and away from European and emerging market equities as well as consumer names.

Markets have been on a roll after bottoming out in mid-June, with the S&P 500 rising 11.2% in the past month alone.

Hartnett, however, cautioned against getting carried away. He said the bank’s investment team remained “patient” and would bet against the shares after the index hit 4,328, just 0.7% off Monday’s close.

This month’s fund manager survey involved 284 panelists overseeing $836 billion in client money.

—Jeff Cox

Home deposit reported adjusted earnings of $5.05 per share for the last quarter, more than $4.94 expected by analysts, according to Refinitiv. The home improvement retailer’s $43.8 billion in sales for the period was a record. The Home Depot also reaffirmed its 2022 forecast of 3% sales growth.

The shares, which have rebounded more than 14% so far this quarter, have been fluctuating in premarket trading.

European markets were cautiously higher on Tuesday, after struggling to build on the positive momentum seen late last week.

The pan-European Stoxx 600 the index climbed 0.2% in early trade, with basic resources adding 1.3% to leading gains while retail stocks slid 0.3%.

You’re here may be one of the best-known electric vehicle makers, but fund manager and tech investor Paul Meeks thinks the stock is still too expensive.

Meeks revealed to CNBC Professional talks the valuation at which he will find Tesla “more attractive”.

Pro subscribers can read the story here.

— Zavier Ong

There are pockets of “compelling value” in three sectors, even in an economic downturn, said Patrick Armstrong, chief investment officer at Plurimi Group.

These sectors are “unbelievably cheap,” he told CNBC’s “Squawk Box Europe,” naming his favorite stocks and explaining why he likes them.

Pro subscribers can read the story here.

—Weizhen Tan

Shares of Ginkgo Bioworks the stock jumped more than 20% after hours when the company raised its full-year forecast more than expected by Wall Street analysts.

The company now expects full-year 2022 revenue to be between $425 million and $440 million. Previously, the company forecast revenue of between $375 million and $390 million.

—Carmen Reinicke

Shares of Ziprecruiter and Compass both fell after hours trading on Monday after each company delivered results below Wall Street expectations.

Ziprecruiter actually posted quarterly earnings Monday after the bell, but warned that economic uncertainty ahead could weigh on a strong labor market. The company lowered its year-end revenue forecast to reflect a weaker job market. The shares fell more than 5%.

Compass shares plunged nearly 11% in after-hours trading when the company announced it would cut costs next year to weather a tough real estate market.

—Carmen Reinicke

U.S. equity futures opened late Monday after all three major averages posted gains in the daily trading session.

Dow Jones Industrial Average futures lost 33 points, or 0.11%. On Monday, the 30-stock index closed above its 200-day moving average for the first time since late April. S&P 500 and Nasdaq 100 futures fell 0.13% and 0.11% respectively.

—Carmen Reinicke