S&P 500 slips to kick off August, Dow notches small gain after touching highest level in over a year: Live updates

The S&P 500 and Nasdaq Composite finished lower on Tuesday to start the new trading month.

The broad-based index lost 0.27% to finish at 4,576.73, while the tech-heavy Nasdaq dropped 0.43% to end at 14,283.91. The Dow Jones Industrial Average added 71.15 points, or 0.2%, to settle at 35,630.68.

— Samantha Subin

JPMorgan strategist Marko Kolanovic reiterated his skepticism of the market rally in a Monday note.

"Positive news on growth and inflation are fueling optimism for a soft-landing scenario in which inflation returns to target, providing space for DM central banks to ease," he wrote. "We remain skeptical of this outcome, however, anticipating the inflation decline to prove incomplete, leaving restrictive policies in place that should increase private sector vulnerabilities and end the global expansion."

"Equity valuations (multiples) are not pricing a soft landing, but rather a continued expansion (no landing) and simultaneous monetary easing (reduction of interest rates and/or QE)," Kolanovic added.

— Fred Imbert, Michael Bloom

The stock market is riding high after a strong performance in July, but August could be a difficult month for investors.

Data compiled by the Stock Trader's Almanac shows the S&P 500 averages just a 0.1% gain in August. That makes it the third-worst month on average for the benchmark index. The Dow, meanwhile, averages a loss of 0.04% in August.

The Nasdaq also averages a gain of just 0.5% this month, making the second-worst for the tech-heavy index.

— Fred Imbert

Investors will be looking for PayPal to address investor concerns ahead of second quarter earnings, according to Morgan Stanley.

"PYPL has essentially recovered to the levels last seen heading into its 1Q23 earnings on the back of improving consumer sentiment and better eComm data points," analyst James Faucette wrote in a Tuesday note. "However, we think that investors' operational and organizational concerns remain largely unaddressed."

Faucette said investors are looking for guidance on the company's succession plan, growing Venmo and gaining a larger market share in the e-commerce segment.

PayPal will report quarterly results on Wednesday, and analysts polled by FactSet are forecasting an adjusted $1.15 per share.

— Brian Evans

Tupperware's stock jumped another 27% on Tuesday, to $5.51, building on its recent string of gains.

The recent mammoth move in shares — up almost 600% since June 30 — reminds some investors of the frenzy seen in so-called "meme stocks" in 2021.

Short interest in Tupperware recently stood at 27% of the shares available to be traded, according to FactSet.

— Samantha Subin

Investors continued to snap up tech stocks in July while dumping shares in more defensive sectors, according to E-Trade, a subsidiary of Morgan Stanley.

Information technology, consumer discretionary and communication services were the only sectors that saw net buying last month, as investors continued to shift toward mega-cap tech names such as Nvidia, Amazon and Alphabet, according to monthly sector data from the firm.

Of the eight other sectors that saw net selling, defensive sectors such as consumer staples suffered the steepest losses. The sector was down more than 21% in July, down from a near 4.9% decline in June.

"[Traders] are continuing to lean risk-on," E-Trade's Chris Larkin said in written commentary.

— Sarah Min

Bullish sentiment has gotten so strong that it's concerning for Goldman Sachs' Scott Rubner.

"I am so bullish, that I am actually bearish now for August. I am looking for a small-ish equity market correction in August," he said in a Monday note. "My core behavioral view is that I no longer speak to any 'macro' bears. Positioning and sentiment is no longer Pessimistic, it is Euphoric."

He remains bullish on China and emerging market equities, however. 

Rubner's comments come as Wall Street pores through corporate results. While second-quarter earnings have been better than expected, "investors have not rewarded stocks" exceeding expectations. "On the day after releasing results, stocks beating consensus expectations underperformed by a greater amount than almost any time (i.e. removing Covid) during the past 18 years."

— Pia Singh

Despite some promising signs of easing inflation, it's "too soon" to guarantee a soft landing scenario just yet, said Adam Phillips, managing director at EP Wealth Advisors.

"We've seen progress, that's all well and good, but let's not celebrate just yet," he said. "There are still a lot of things that are up in the air."

Phillips highlighted gas prices hovering near months-long highs among his reasons for caution, noting that policy acts with a lag and can take time work through the system and impact economic data.

— Samantha Subin

Shares of Coinbase dropped about 6% after a federal judge said some crypto assets are securities regardless of the context in which they are sold.

The opinion came from the same Manhattan federal court that handed down a ruling last month in the Securities and Exchange's suit against Ripple, which said the opposite: that Ripple's XRP is a security in certain situations but not in others. Coinbase shares rallied more than 24% the day of that ruling on optimism that it might prevail in its own battle with the SEC.

"While the prices of COIN shares and crypto altcoins jumped following Judge Torres' Ripple
ruling on July 13, we argued that the enthusiasm arising from the decision could be short-lived due in part to questions about the logical underpinnings of the ruling raised in its aftermath by legal experts," Mark Palmer, an analyst at Berenberg Capital Markets, said in a note Tuesday.

"Some observers suggested that COIN would be a significant beneficiary of Judge Torres' ruling, while others, us among them, noted that it was a single ruling by a district judge, and that it did not represent a binding precedent," he added.

— Tanaya Macheel

Deutsche Bank downgraded ZoomInfo Technologies to hold from buy after the data company reported a weak outlook for third-quarter revenue. 

The firm kept its $20 price target, which would imply a nearly 22% decrease from Monday's close. Shares of ZoomInfo were down 24.6% on Tuesday.

"We are concerned by management's persistent lack of visibility and a multiple (based on AH trading) that is not without downside risk," Zelnick wrote. "While ZoomInfo is no doubt delivering tangible benefits for customers, we are a little surprised by its inability to command price like other software companies and see this likely feeding the bear narrative around competition (particularly at the lower end of the market)."

ZoomInfo reported Monday that it anticipates $309 million to $312 million in revenue, while analysts polled by Refinitiv had called for $326 million. ZoomInfo's second-quarter revenue of $309 million also missed expectations, as analysts estimated $311 million.

— Pia Singh

ResMed advanced nearly 2% after RBC turned bullish on the health technology stock.

Analyst Craig Wong-Pan upgraded shares to outperform, noting a strong position in the sleep and respiratory markets in addition to an appealing risk-reward ratio. His price target for shares of $284 suggests that he thinks the stock could have another 27.7% upside. Shares have gained slightly more than 9% this year.

"Over the past few years, ResMed has been gaining share in the sleep market by launching new and innovative products. We expect ResMed to continue investing a significant amount into R&D that will maintain its leadership in new and innovative products," he said, using an acronym for research and development.

— Alex Harring

The S&P 500 finished its fifth straight winning month with Monday's close. If history repeats itself, that honorific could signal there's more good news ahead.

On average, the index is also higher one, three, six and 12 months after the fifth winning month concludes, according to historical data analyzed by the Carson Group. And those performances are usually strong when compared against baseline S&P 500 data.

The S&P 500 has notched monthly win streaks of this length just 29 times since 1950, the data shows. More than nine times out of 10, the S&P 500 was higher a year later. It was up more than four times out of every five at the six-month point.

To be sure, it's not a perfect science. In 2021, which was the last time a streak of this length was reached, the index was down nearly 12% a year later. And the last time before that, which was in 2020, the S&P 500 finished the next month almost 4% lower.

— Alex Harring

The yield on the benchmark 10-year Treasury note reached its highest level since early July.

The 10-year yield reached a fresh high of 4.049%, its highest point since July 10 when it yielded as high as 4.092%.

Meanwhile, the spread between the 2-year and 10-year Treasury hit a high of -86.0. That's the highest level since July 13, when the spread was as much as -82.30.

— Gina Francolla, Sarah Min

Check out the companies making headlines in midday trading.

• Toyota Motor — Shares rose 1.7%, hitting a new 52-week high, after the company reported a revenue beat in the fiscal first quarter.
• Coinbase – Shares of the crypto exchange dropped 8% after a federal judge said some crypto assets are securities regardless of the context in which they are sold.
• ResMed — The health technology stock advanced 1.9% after RBC upgraded shares to outperform, citing an appealing risk-reward profile.
• Gap, American Eagle— Shares of Gap were up 2% during midday trading after Barclays upgraded the stock to overweight from equal weight.

Check out the full list here.

— Hakyung Kim

Credit card spending trends point to a positive second-quarter report from food delivery company DoorDash, according to Bank of America. Analyst Michael McGovern hiked his price target on the stock to $95 per share from $82 and reiterated his buy rating on the stock.

"BAC aggregated credit & debit card data for Online Restaurant Delivery spending shows that Online Restaurant spending (card not present) accelerated 2pts vs. May, reaching 6% Y/Y, with growth for the lower income cohort also accelerating to 8% Y/Y (vs. higher income cohort at +4%)," McGovern said in a note to clients.

DoorDash is set to report earnings after the market close on Wednesday.

— Jesse Pound

Norwegian Cruise Line tumbled more than 14% in Tuesday's session as weak expectations for the current quarter outweighed a better-than-expected second financial report.

The company beat Wall Street expectations on both lines in the second quarter, posting 30 cents per share, excluding items, on $2.21 billion in revenue. Analysts surveyed by Refinitiv anticipated 27 cents earned per share on $2.17 billion.

But Norwegian said to expect earnings for the currently ongoing quarter to come in below where Wall Street has set its expectations. Competitor Royal Caribbean, meanwhile, raised its full-year earnings outlook above where analyst forecasted when reporting earnings last week.

Royal Caribbean took a relatively modest slide in Tuesday's session, slipping 2.3%. Carnival Cruise Line fell 6.1%.

— Alex Harring, Seema Moody

Gap shares rose more nearly 2% in premarket trading after Barclays got off the sidelines on the retailer's stock.

Analyst Adrienne Yih upgraded the retailer to overweight from equal weight. CNBC Pro subscribers can see her reasoning here.

— Alex Harring

Job openings moved lower in June, according to data from the Labor Department released Tuesday.

Employment openings totaled 9.58 million for the month, edging lower from the downwardly revised 9.62 million in May, the department said in its monthly Job Openings and Labor Turnover Survey. It marks the lowest level of openings since April 2021 and below the 9.7 million estimate from FactSet.

Layoffs also moved down to 1.53 million, after totaling 1.55 million in May.

— Jeff Cox

JetBlue Airways shares shed nearly 8% after the airline slashed its full-year outlook as more consumers choose to travel abroad.

The company said it now expects full-year earnings to range from 5 cents to 40 cents per share, down from a previous estimate of as much as $1. JetBlue also said it anticipates a loss for the current quarter and decline in revenue from a year ago.

Despite Tuesday's stock move, the airline reported earning roughly in line with analysts expectations, posting EPS of 45 cents on $2.61 billion in revenue. Analysts polled by Refinitiv had expected EPS of 44 cents and $2.61 billion in sales.

JetBlue is also dealing with the fallout from the end of its partnership with American Airlines in the Northeast.

Other airline stocks moved lower on the news, with American, Delta Air Lines and United Airlines last down more than 3% each. Southwest Airlines lost 2.4%.

— Samantha Subin, Leslie Josephs

The ISM manufacturing PMI came in at 46.4, lower than the StreetAccount estimate of 46.9. This marks the ninth straight month the index has been in contractionary territory. (A number above 50 indicates expansion; one below 50 indicates contraction).

However, the print is an uptick from June's 46 number.

"Demand remains weak but marginally better compared to June, production slowed due to lack of work, and suppliers continue to have capacity. There are signs of more employment reduction actions in the near term to better match production output," Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said in a statement.

— Fred Imbert

Ten low-cost ETFs are getting even cheaper on Tuesday, according to State Street.

The asset manager is reducing fees for 10 members of its portfolio ETF suite. The 10 funds hold more than $70 billion in combined assets, led by the SPDR Portfolio S&P 500 ETF (SPLG) at roughly $20 billion in assets under management.

Check out the full list of funds impacted here.

— Jesse Pound

Stocks opened slightly lower to start a fresh month of trading.

The Dow Jones Industrial Average traded flat, while the S&P 500 lost 0.3%. The Nasdaq Composite dropped 0.5%.

— Samantha Subin

SoFi lost 2.5% before the bell on Tuesday after KBW said investors should sell the financial technology stock following its recent rally.

"We believe valuation has overshot the fundamental earnings outlook," analyst Michael Perito said in a note to clients downgrading the stock to underperform from market perform.

CNBC Pro subscribers can read more here.

— Alex Harring

These are some of the stocks making the biggest moves before the bell:

• Gap — The retail stock climbed nearly 4% after Barclays upgraded Gap to overweight from equal weight.
• ZoomInfo Technologies — Shares sank by nearly 20% in premarket trading after the data company reported a weak outlook for third-quarter revenue.
• SoFi Technologies — The financial technology stock dropped 3.7% after KBW downgraded the stock from underperform from market perform. 

Read the full list of stocks moving here.

— Pia Singh

Estee Lauder dipped more than 1% before the bell after Citi cautioned that challenges in its Asia business could spell bad news in the short term.

"We remain optimistic about the long-term revenue and margin opportunities at EL, but we expect weaker results over the next few quarters with negative incremental data points," analyst Filippo Falorni said when downgrading the beauty company's stock to neutral from buy.

CNBC Pro subscribers can click here to read the full story.

— Alex Harring

The ridesharing stock jumped more than 4% before the bell after posting its first-ever GAAP operating profit.

Uber Technologies reported earnings of 18 cents per share. That far exceeded the 1-cent loss expected by analysts polled by Refinitiv. Revenue came in at $9.23 billion, slightly below the expected $9.33 billion and grew 14% on a year-over-year basis.

Gross bookings also came in slightly ahead of estimates and rose 16% from a year ago to $33.60 billion. Analysts polled by FactSet had expected $33.49 billion.

Uber said it expects gross bookings to come in between $34 billion to $35 billion and an adjusted EBITDA of $975 million to $1.025 billion in the third quarter. Both estimates come in ahead of analyst expectations, according to StreetAccount.

— Samantha Subin, Ashley Capoot

Caterpillar shares moved slightly higher before the bell after the heavy machinery maker reported second-quarter results that topped expectations helped by greater equipment demand and higher sales across its major segments.

The company reported adjusted earnings of $5.55 per share on $17.32 billion in revenue. That surpassed the EPS of $4.58 and revenues of $16.49 expected by Wall Street analysts, according to Refinitiv.

— Samantha Subin

Pfizer shares moved slightly lower after the drugmaker reported mixed second-quarter results.

The company posted adjusted earnings of 67 cent per share, topping the 57 cents expected by analysts, per Refinitiv. Revenue came in at $12.73 billion, falling short of the expected $13.27 billion due to lower Covid-related sales.

— Samantha Subin

Merck posted a smaller-than-expected loss and revenue that exceeded expectations thanks to strong Keytruda sales. The company's numbers reflect a $10.2 billion charge related to its acquisition of Prometheus, a company that specializes in autoimmune disease treatments.

— Fred Imbert

Oppenheimer's John Stoltzfus raised his year-end S&P 500 target to 4,900, the highest the highest in CNBC's Market Strategist survey. That forecast represents upside of 6.8% from Monday's close of 4,588.96.

"The Fed's rate cycle now appears to be closer to a pause or an end than it has been since March of 2022, with both the CPI headline and CPI core numbers as well as other gauges showing improvement," the firm's strategist wrote.

— Fred Imbert

U.S. Treasury yields were little changed on Tuesday as investors awaited key data that could provide fresh hints about the state of the economy and influence the Federal Reserve's monetary policy.

At 3:40 a.m. ET, the yield on the 10-year Treasury was up by less than one basis point to 3.9669%. The 2-year Treasury yield was less than one basis point lower at 4.8641%.

— Sophie Kiderlin

China's factory activity fell into contraction territory for the first time since April, according to the Caixin survey compiled by S&P Global.

The purchasing managers index came in at 49.2 in July, in contrast to the 50.3 figure expected by economists polled by Reuters.

A PMI reading of above 50 indicates expansion, while a reading below 50 indicates contraction.

The Caixin survey comes a day after official statistics showed that the country's factory activity contracted for a fourth straight month, with a PMI reading of 49.3.

— Lim Hui Jie

South Korea's factory activity contracted for a 13th straight month, according to private surveys from S&P Global.

The manufacturing purchasing managers index came in at 49.4 in July, which is its softest contraction in a year.

S&P Global wrote that this was due to a slower reduction in output levels in July, in part due to a renewed expansion in exports.

This is also in addition to positive indications for demand conditions in July, which led manufacturers to increase staffing levels for the third month in a row. Input costs also fell for the first time in just over three years and at the fastest pace since July 2017.

— Lim Hui Jie

Japan's seasonally adjusted unemployment rate fell to 2.5% in June, slightly lower from 2.6% a month earlier, government data showed.

The figure is in line with expectations of economists polled by Reuters.

Japan's jobs to applicants ratio came in at 1.3 for June, slightly lower than the Reuters forecast of 1.32.

— Lim Hui Jie

The Dow Jones Industrial Average was in the spotlight after its historic 13-day winning run in July – but the true standout in the month was the Russell 2000.

The small cap benchmark wrapped up July with a nearly 6.1% gain. In comparison, the S&P 500 and the Dow climbed more than 3%, while the Nasdaq Composite added about 4.1%.

Constituents in the Russell 2000 include data storage name Super Micro Computer, up 32% in July, and artificial intelligence sensation C3.ai, which advanced 15%.

-Darla Mercado, Jason Gewirtz

The dollar has climbed 2.3% since bottoming in mid-July, presenting another headwind to continued equity market strength.

"We don't see the dollar weakening further until we get clear signs of improvement in the global growth outlook, with the greenback more prone to a short-term rebound in our view," Barclays equity strategist Venu Krishna wrote on Monday.

The dollar's weakness over the past year has proven a tailwind to U.S. corporate profits of those companies with a high degree of international sales. Higher overseas sales denominated in euros or yen translate into more dollars when the dollar is weak, and fewer dollars when the currency is strong.

But now, disinflation in the U.S., "accompanied by resilient growth" rather than macroeconomic weakness seen in the rest of the world, especially China and Europe, plus "signs of a potential bottoming out in USD speculative futures" means that "the trade-down in the dollar looks technically stretched," Barclays told clients.

— Scott Schnipper, Michael Bloom

Check out the companies making headlines in extended trading.

Yum China — The restaurant franchiser's shares fell 3.6% following its mixed second-quarter results. The company announced 47 cents in adjusted earnings per share on $2.65 billion in revenue. Analysts polled by Refinitiv had expected 46 cents earnings per share on $2.68 billion in revenue. Management noted that same-store sales across its restaurants still remained below pre-pandemic levels. 

ZoomInfo Technologies – Shares shed more than 17% in extended trading after the company posted a weak outlook for third-quarter revenue. The data company anticipates $309 million to $312 million in revenue, while analysts called for $326 million, according to Refinitiv. ZoomInfo's revenue in the latest quarter also missed expectations, coming in at $309 million, while analysts estimated $311 million.

Arista Networks — Shares rose almost% after the company's quarterly earnings topped analysts' expectations. Arista reported adjusted earnings of $1.58 per share, versus consensus analyst estimates of $1.44 per share, according to Refinitiv. Revenue also came in higher than expected at $1.46 billion, compared to analyst expectations of $1.38 billion. 

The full list can be found here.

— Hakyung Kim

U.S. stock futures opened near the flatline Monday night.

Dow Jones Industrial Average futures inched up 0.04%. Meanwhile, Nasdaq 100 and S&P 500 futures added 0.08% and 0.1%, respectively.

— Hakyung Kim