00:00The Nasdaq ended lower on Tuesday as chip stocks added to recent losses and investors passed mixed quarterly results from
00:08Citigroup and other big US banks.
00:11The PHLX chip index fell for a fifth trade session after Broadcom CEO Hock Tan on Monday linked some of
00:20the investment flow into the sector to casino gambling.
00:25Additionally, reports of technological advances by Chinese memory chip company CXMT underscored concerns about rising competition.
00:35Micron technology and applied materials both fell sharply, Broadcom rose. Citigroup, Deep and Goldman Sachs rose after both banks stopped
00:46profit estimates.
00:48Wells Fargo fell after its net interest income misestimates, while JPMorgan Chase swung between gains and losses following a rare
00:57profit miss.
00:58Apple hit an intraday record high.
01:00Analysts on average see S&P 500 third quarter earnings surging over 30%, fueled largely by AI-related technology companies
01:09according to LSEG data.
01:12I think the market is generally pretty concerned about earnings season coming up.
01:16We got some somewhat disappointing news out of the financial companies today that sets us up with a little bit
01:22of a negative tone in what is expected to be a very positive earnings season.
01:27Analysts are anticipating about 25% growth in earnings.
01:32That is a little bit of a downdraft from the 30% plus that we saw in the last couple
01:36of quarters, but still extraordinary growth.
01:38And that's pretty much baked into prices.
01:41So anything that calls into question that growth rate is going to certainly make the market a little bit nervous.
01:48The S&P 500 lost at 1.79 points or 0.02% to end at 7,805.45 points,
01:57while the Nasdaq Composite lost at 41.52 points or 0.15% to 27,204.38.
02:06The Dow Jones Industrial Average fell 180.45 points or 0.35% to 51,670.10.
