STORY: U.S. stocks closed lower on Tuesday, with the Dow dropping nearly half a percent and the S&P 500 and Nasdaq each shedding roughly a third of a percent.
A host of Dow components reported earnings, including UnitedHealth.
Shares of the health insurer stumbled 7.5% and were the biggest drag on the blue-chip index after a disappointing profit forecast.
Mike Mussio is president of FBB Capital Partners.
“A little bit of a pullback here on some some weak earnings numbers from some fairly significant companies. UnitedHealthcare reinstated guidance, but it was below what folks were expecting, so that's weighing on the Dow for sure. And so, you know, puts and takes, it's healthy to have some red days on the screen as long as they're not too red, but to have some red days to offset some of the green days.”
Shares of Boeing dropped nearly 4.5% despite the planemaker reporting a smaller second-quarter loss.
Merck's stock dipped more than 1.5% after its quarterly results. The drugmaker said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to weak demand.
UPS shares plunged 10.5% after the delivery giant again declined to issue annual revenue and margin forecasts, deepening concerns that President Trump's continually changing trade policy is weighing on the company.
And shares of Whirlpool spiraled about 13.5% after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs.
Investors now turn their attention to the conclusion of the Federal Reserve's policy meeting on Wednesday.
Remarks by Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts.
