US Stocks Pause as Traders Digest Earnings and Await Powell Speech

With a 0.14% gain yesterday, the S&P 500 managed to eke out another record high close Monday, but Tuesday finds US index futures hitting pause and trading flat to down 0.1%. Traders appear to be waiting to see if there will be any hints in Fed Chair Powell’s speech this morning as to whether the Fed is thinking about cutting interest rates when the FOMC meets next week.

Today’s earnings reports and the market reaction to them, has been mixed. The main theme has been defense stocks, where RTX beat the Street, but Lockheed Martin and Northrop Grumman missed. Lockheed is down 7.1% in premarket trading. Elsewhere Coca-Cola and Phillip Morris* beat expectations but are declining premarket. Canadian National Railway, Texas Instruments and Capital One report after the close today.

With the August 1 tariff deadline fast approaching, European markets are down this morning with the DAX dropping 1.1% and the CAC losing 0.8%. The FTSE, which is not as impacted by tariffs since the UK has a tentative deal with President Trump, is essentially flat. Currencies are quiet this morning. Commodities are mixed with Copper up 0.6% and Crude Oil down 1.0%.

*Shares of Philip Morris are held in some portfolios managed by SIA Wealth Management.

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