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Dow Falters on Earnings Disappointment

The Dow Jones Industrial Average fell Tuesday, pulling back from record-breaking highs as traders poured through the latest batch of corporate earnings.

The blue-chip index dropped 165.88 points to 37,835.93, pressured by a 6% decline in 3M, which was under pressure on the back of disappointing guidance. Johnson & Johnson fell more than 1% after reporting earnings.

The S&P 500 index dipped 0.77 points to 4,849.66,

The NASDAQ inched 2.21 points to 15,362.50.

D.R. Horton dropped more than 8% after the homebuilder missed Wall Street’s consensus forecast for per-share earnings. General Electric slipped 1% on the back of weaker-than-expected guidance.

On the other hand, United Airlines rose more than 6% after reporting strong fourth-quarter results. However, the airline operator said it expects a first-quarter loss from the grounding of Boeing 737 Max 9 airplanes, the model involved in the Alaska Airlines emergency earlier this month.

Shares of other airline operators rose in tandem. American Airlines, Southwest Airlines and Alaska Air Group all climbed at least 3%, while Delta Air Lines added more than 2%.

Elsewhere, Verizon and Procter & Gamble helped mitigate losses for the Dow. Verizon gained more than 4% and P&G more than 5%, as investors bought in following the companies’ financial reports.

But investors are deliberating how long the gains can persist, especially as the rally this year has centered around tech stocks such as Nvidia, while broader participation has continued to disappoint.

Investors will be closely watching a slate of economic reports due out this week, including gross domestic product data on Thursday and the personal consumption expenditures prices on Friday. Both reports could provide insight into how central bank policymakers view monetary policy moving forward.

Prices for the 10-year Treasury flopped, boosting yields to 4.15% from Monday’s 4.10%. Treasury prices and yields move in opposite directions.

Oil prices slipped five cents to $74.71 U.S. a barrel.

Gold prices picked up $4.90 to $2,027.10.

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