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Stock indexes end lower, breaking a 5-day winning streak

Trader James Riley works on the floor of

Trader James Riley works on the floor of the New York Stock Exchange on July 1. Credit: AP / Richard Drew

Stocks ended a five-day winning streak on Tuesday as investors cautiously assessed the first big round of corporate earnings reports.

Technology companies fared the worst, weighed down by a 1.3 percent drop by Microsoft and a 1.9 percent slide from Intel.

Johnson & Johnson led health care stocks lower with a drop of 1.6 percent. The health care and pharmaceutical company's full-year profit forecast remained mostly below analysts' projections.

Financial stocks gave up early gains and turned mostly lower, although Goldman Sachs and JPMorgan Chase rose. Energy companies also fell broadly.

Major indexes were mixed for much of the morning and turned lower at midday after President Donald Trump said, "We have a long way to go on tariffs with China."

Investors are looking for reasons to remain cautious as companies release results and give forecasts for the remainder of the year, said Jack Ablin, chief investment officer for Cresset Wealth management.

It's still early to tally results, but so far the share of companies beating profit forecasts has been high while many are reporting revenue shortfalls.

"That certainly doesn't bode well for growth in the second half," he said.

The influx of earnings reports are coming in ahead of a highly anticipated Federal Reserve meeting at the end of the month. Wall Street expects the central bank to raise interest rates to help secure U.S. economic growth threatened by a trade war with China.

The S&P 500 fell 0.3 percent to 3,004.04. That marks the first decline in the benchmark index after five days of gains. The Dow Jones Industrial Average fell 23.53 points, or 0.1 percent to 27,335.63. The Nasdaq composite fell 0.4 percent to 8,222.80.

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