U.S. stocks fell on Tuesday in the wake of results from IBM and United Technologies that dampened early optimism over earnings season as investors awaited quarterly profits from tech giants including Apple and Microsoft.
The markets had been expecting Q2 earnings season to be negative, with earnings and sales growth both dipping. However, that is not the way things are going so far. There have been some notable earnings beats with Google, Bank of America, and Citigroup all posting better than expected results for the three months to June.
U.S. stock index futures were slightly lower on Monday after the markets leapt on Friday on strong jobs data that showed the U.S. economy was picking up steam, but not by enough to raise concerns about an earlier-than-expected interest-rate rise.
Billionaire investor Warren Buffett defended some of his core holdings in a televised interview on Monday, but reiterated that equities in general would look expensive in an environment with normal interest rates.