U.S. stocks ended mixed on Tuesday, as investors parsed a deluge of earnings reports. Meanwhile, Treasury yields slipped as traders snapped up bonds after soft economic data.
The Dow Jones Industrial Average notched a new record close, advancing 0.1% to settle at 50,188.14 points. The blue-chip gauge last Friday hit the historic 50,000 level for the first time ever, and consolidated above it on Monday.
The benchmark S&P 500 index slipped 0.4% to conclude at 6,940.01 points, while the tech-heavy NASDAQ Composite fell 0.6% to finish at 23,102.47 points.
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"It is a mixed tape today, with the S&P 500 stalling just shy of a new record high. The semiconductor space, which led the equity rally the other day, is seeing profit-taking today," Michael O’Rourke, chief market strategist at Jones Trading, told Investing.com.
"The software and services group is trying to extend its bounce to three days, but momentum is fading. Brokers and wealth managers are selling off on reports of a new AI-powered tax planning offering from Altruist," he said.
"Precious metals and cryptocurrencies have also resumed their corrections following the two-day bounce. A weaker-than-expected retail sales report is fueling a rally in the bond market, and the 10-year Treasury yield has moved down to its lowest level in four weeks," O’Rourke added.
The main averages on Wall Street gained on Monday, extending a furious rally from the end of last week. The advance has been driven primarily by a rebound in tech stocks exposed to the artificial intelligence-driven boom in data centers.
Earnings: Coca-Cola miss, Spotify surge Attention is firmly on the quarterly earnings season, with results coming from the likes of Coca-Cola (NYSE:KO), Spotify (NYSE:SPOT), Marriott (NASDAQ:MAR), and Hasbro (NASDAQ:HAS) ahead of the opening bell.
Overall trends in Q4 earnings have been positive, but the market is becoming more discerning. It is actively rewarding companies that deliver solid results while punishing those with poor performance or weak future guidance.
Coca-Cola stock was among the top percentage decliners on the Dow, after the world’s largest soft drinks company delivered a quarterly revenue miss ahead of a CEO transition.
On the other hand, Spotify shares surged. The world’s biggest music streaming platform easily outstripped earnings expectations on the back of robust user growth.
In other earnings-related moves, Marriott stock advanced. The world’s top hotel chain saw strong growth in quarterly credit card fees, which helped offset a weak room revenue growth guidance.
Toymaker Hasbro was another notable gainer. The company saw a solid jump in quarterly revenue, but the bigger driver was a new multi-year partnership inked between Hasbro and Warner Bros Discovery (NASDAQ:WBD).
Bonds surge after flat retail sales On the macroeconomic front, investors are focused on U.S. labor market and inflation data that were postponed following a recent government shutdown.
The closely watched monthly U.S. jobs report is now due on Wednesday, while the January consumer price index report has been rescheduled for release on Friday.
Both reports are expected to play a key role in shaping expectations for the Federal Reserve’s policy path, particularly around the timing and pace of any interest rate cuts later this year.
Signs of cooling inflation or a softer labor market could reinforce hopes for easier monetary policy later in 2026.
Ahead of this, retail sales for December came in on Tuesday. The headline number was unchanged M/M, below the estimate for an increase of 0.4%. Core retail sales were also unchanged M/M, missing the consensus for a rise of 0.4%.
"Interest rates are plunging following a morning featuring multiple weaker-than-anticipated economic data points that lifted the chances of three Fed cuts this year," José Torres, senior economist at Interactive Brokers, said.
"Bad numbers are indeed good news for investors today, as those sinking yields bolster the cyclical trade, sparking a continuation in market rotation with the Dow Jones Industrial Average hitting another record, marking its third consecutive session of the benchmark reaching a fresh peak," he added.
The benchmark United States 10-Year yield fell 6 basis points to 4.138%, while the shorter-end, more rate-sensitive United States 2-Year yield slipped 3 basis points to 3.452%.
Gold slips slightly Gold prices fell on Tuesday, retreating from strong gains in the prior session as metal markets remained on edge before a string of key U.S. economic readings due this week.
Silver and platinum prices also fell, having taken limited support from an overnight drop in the dollar, although the greenback steadied in Asian trade.
