Opening: U.S. stocks opened mixed on Tuesday, IBM shares plummeted after issuing profit warning
On the evening of July 14th, Beijing time, U.S. stocks opened with mixed prices on Tuesday. Traders are weighing a slew of corporate earnings reports and rising oil prices. Shares plummeted after issuing a profit warning. U.S. CPI growth in June was 3.5% year-on-year, lower than expected. The Dow Jones Industrial Average fell 102.53 points, or 0.20%, to 52396.11 points; the S&P 500 Index rose 23.49 points, or 0.31%, to 7538.83 points; the Nasdaq rose 134.13 points, or 0.52%, to 26007.31 points. International Business Machines Corp. (IBM) shares fell nearly 21% after the company reported preliminary second-quarter earnings of $2.93 per share (excluding certain items), below the FactSet consensus estimate of $3.01. A number of large banks, including Bank of America and Citigroup, also released second-quarter results, and their stock prices were in negative territory. The results announced exceeded expectations, and the stock price rose more than 1%. Semiconductor stocks rebounded after selling off in the previous session. The VanEck Semiconductor ETF rose more than 2% in pre-market trading. rose more than 4%, with Ram Research, STMicroelectronics, Technology stocks both rose more than 3%. Major U.S. stock indexes fell on Monday after U.S. President Donald Trump said he would reimpose a blockade on Iranian shipping through the crucial Strait of Hormuz. “We are re-imposing the ‘Iran Blockade’, so named because it only prevents Iranian ships or customers from entering or exiting,” Trump posted on Truth Social. Oil prices soared and stocks fell on Monday after Trump's announcement. Brent crude surged more than 9%, its biggest one-day gain since 2020. On Tuesday, U.S. crude oil prices exceeded $80 a barrel, with the latest gain of 2% on the day. Brent crude futures, the international benchmark, rose 2% to over $86 a barrel. In terms of economic data on Tuesday, the U.S. Consumer Price Index (CPI) increased by 3.5% year-on-year in June, lower than the accepted level. Analysts surveyed had expected an average of 3.8%, mainly due to lower energy prices last month. Federal Reserve Chairman Kevin Warsh will also meet with lawmakers on Capitol Hill on Tuesday as part of his two-day "Humphrey Hawkins" presentation on monetary policy. This is the first time that the new Federal Reserve Chairman has submitted the central bank's semi-annual report.