U.S. stocks slipped from records Tuesday as investors awaited earnings reports from the biggest technology giants.
The S&P 500 dropped 0.5%, while the Dow Jones Industrial Average fell 0.7%, or about 230 points. The tech-heavy Nasdaq Composite lost 0.5%. The three indexes closed at all-time highs Monday.
U.S. stocks have been grinding higher as investors cheer strong corporate results and upbeat guidance from some of the largest American businesses. At the same time, concerns are lingering over the Delta-variant of Covid-19, supply-chain problems, a spike in inflation and cooling economic growth.
“We’ve been characterizing this market as a jetliner that has lifted off and is coming out of the Covid-19 air pocket, but is still trying to find an appropriate cruising altitude,” said Kara Murphy, chief investment officer at Kestra Holdings. “We are seeing economic data going from great levels to good levels: that is still indicative of economic growth.”
Fresh data showed that orders for cars, appliances and other durable goods increased in June, indicating continued strength in the economy. But the 0.8% increase in new orders was below the 2% gain estimated by economists surveyed by The Wall Street Journal.
