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

Tech, semiconductor stocks slip

Technology stocks moved lower 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’s information technology sector was last down 1%. Within the sector, shares of solar stocks Enphase Energy and SolarEdge fell more than 2% each.

At the same time, consumer staples rose more than 1% boosted by shares of Walmart and Kroger.

— Samantha Subin

Natural gas prices jump

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

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

Jeremy Siegel says the June low was a market bottom

You can count Jeremy Siegel among the group that is feeling more bullish about the US economy and the stock market after the July economic data releases.

The Wharton professor said on CNBC’s “Squawk Box” that he is growing more confident in the Fed pulling off a “soft landing” and that stocks appear to be on solid footing after a rough start to the year.

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

Check out more of Siegel’s analysis on CNBC Pro.

— Jesse Pound

Dow rises, S&P 500 and Nasdaq slip

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

— Samantha Subin

Industrial production increased faster than estimate in July

Industrial production rose more than expected in July at a time when concerns are rising over the US manufacturing sector.

The measure of activity in manufacturing, mining and electrical and gas utilities increased 0.6% on the month, compared to the Dow Jones estimate for 0.3%, according to Federal Reserve data Tuesday. Manufacturing was particularly strong, rising 0.7% after falling for two months in a row.

Those numbers come the day after a stunning slide in the New York Fed’s Empire Manufacturing Index, which collapsed 42 points for a reading of minus-31.3.

However, the national numbers show activity 3.9% above its level at the same period a year ago.

Also Tuesday, the Fed said capacity utilization totaled 80.3%, slightly above the estimate. The metric calculates the output level compared to full potential, and the current reading is 0.7 percentage points above its long-run average, according to the Fed.

—Jeff Cox

Futures slip ahead of open

Stock futures slipped ahead of the market open on Tuesday. Futures tied to the Dow were last down 59 points, or 0.17%. S&P 500 and Nasdaq 100 futures fell 0.23% each.

— Samantha Subin

Housing starts showing sharp decline in July

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

Housing starts totaled 1.446 million in July, a slide of 9.6% from June, according to the Commerce Department. Economists surveyed by Dow Jones had been looking for 1.52 million on the starting number, which would have been a drop of 2.5%.

On building permits, they totaled 1.674 million, a 1.3% decline from a month ago. However, that was a bit better than the 3.3% estimate.

Construction has slowed as mortgage rates and building costs have shot higher this year. The slump in housing has weighed on broader economic growth, as the industry contributes more than 15% of the national GDP.

—Jeff Cox

Zoom sputters in premarket trading

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

— Sarah Min

Most investors think inflation is heading lower, Bank of America survey shows

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

Some 88% of respondents said they see inflation abating and “fear of draconian rate hikes subsiding,” said Michael Hartnett, BofA’s chief investment strategist. Following July’s market rally, there has been a “big [August] rotation to US stocks/tech/consumer out of staples/utilities/UK.”

The consumer price index was flat in July was 8.5% higher than a year ago but flat month over month, providing some hope that soaring prices may be easing.

However, Hartnett added that portfolio manager positioning is still “long stagflation,” or slow growth with relatively high inflation. That means allocations are still tilted to commodities, cash and defensive stocks and away from Europe and emerging market stocks as well as consumer names.

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

Hartnett cautioned against getting carried away, though. He said the bank’s investment team remains “patient bears” and would bet against stocks after the index hits 4,328, which is just 0.7% away from Monday’s close.

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

—Jeff Cox

Walmart beats expectations, reiterates forecast

Home Depot tops earnings estimates, posts record sales

Home Depot reported $5.05 in adjusted earnings 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 were a record. Home Depot also reaffirmed its 2022 guidance of 3% sales growth.

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

European markets nudge higher, looking to build momentum

European markets were cautiously higher on Tuesday, having struggled to build on the positive momentum seen at the end of last week.

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

CNBC Pro: Tesla’s valuation doesn’t make sense until it hits this level, fund manager says

Tesla 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 Pro Talks the valuation at which he would find Tesla “more interesting.”

Pro subscribers can read the story here.

Xavier Ong

CNBC Pro: Strategist names the global stocks to buy despite slowing growth

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

These sectors are “incredibly 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

Ginkgo Bioworks surges after hours

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

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

—Carmen Reinicke

Ziprecruiter, Compass shares slump

Shares of Ziprecruiter and Compass both fell in after hours trading Monday after each company delivered results that fell short of Wall Street’s expectations.

Ziprecruiter actually posted a quarterly profit Monday after the bell, but warned that upcoming economic uncertainty may weigh on a strong labor market. The company lowered its year-end revenue outlook to reflect a weaker labor market. Shares fell more than 5%.

Shares of Compass plunged nearly 11% in after hours trading when the company said it would cut costs next year to be able to withstand a difficult housing market.

—Carmen Reinicke

US stock futures open flat

US stock futures opened flat Monday evening after all three major averages notched gains in the daily trading session.

Dow Jones Industrial Average futures shed 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 dipped 0.13% and 0.11%, respectively.

—Carmen Reinicke

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