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Wall Street Mixed on Earnings Reports  07/23 13:18

   U.S. stock indexes on Wall Street were mixed in afternoon trading Tuesday, 
as earnings reporting season ramps up for big companies.

   NEW YORK (AP) -- U.S. stock indexes on Wall Street were mixed in afternoon 
trading Tuesday, as earnings reporting season ramps up for big companies.

   The S&P 500 slipped less than 0.1%, drifting between small gains and losses. 
The Dow Jones Industrial Average gave up an early gain and was down 26 points, 
or 0.1%, as of 1:39 p.m. Eastern time, and the Nasdaq composite was 0.1% higher.

   Dozens of companies are reporting their results for the spring on Tuesday, 
with a couple highly influential Big Tech companies coming after trading ends 
for the day in Alphabet and Tesla. Expectations are generally high, and 
analysts are forecasting the strongest profit growth for S&P 500 companies 
since late 2021, according to FactSet.

   GE Aerospace thrust 7.3% higher after beating analysts' forecasts for profit 
in the spring and raising its forecast for earnings over the full year. It was 
one of the strongest forces lifting the S&P 500.

   Danaher rose 5.6% after likewise reporting better profit and revenue for the 
latest quarter than analysts expected, in part because of strength at its 
Cepheid molecular testing business.

   Sherwin-Williams climbed 5.6% after also delivering stronger profit than 
expected. It said it's seeing growth in demand for paint from new residential 
customers, and it expects the momentum to continue through the year.

   Through its customers, the paint and coatings company has been feeling the 
pain of high interest rates meant to get inflation under control. High mortgage 
rates have chilled the housing industry, for example, and a report on Tuesday 
showed sales of previously occupied homes weakened by even more in June than 
economists expected. Sales slowed in part because prices for previously 
occupied homes are at the highest ever recorded, according to the National 
Association of Realtors.

   Easier times may be ahead for rates. With inflation slowing, the wide 
expectation on Wall Street is for the Federal Reserve to begin lowering its 
main interest rate in September. That would offer some relief for both the 
economy and financial markets after the Fed has held the federal funds rate at 
the highest level in more than two decades.

   Treasury yields have sunk since the spring on such expectations, and they 
ticked a bit lower again on Tuesday. The yield on the 10-year Treasury eased to 
4.23% from 4.25% late Monday.

   Hopes for coming cuts to interest rates have helped smaller stocks bounce in 
particular. They can get bigger benefits from lower interest rates than their 
bigger rivals, and the Russell 2000 of smaller stocks rose a market-leading 1%. 
It's a turnaround after smaller companies had lagged the biggest stocks, 
headlined by a small group known as the "Magnificent Seven," for a while.

   Analysts see it as an encouraging signal when more stocks are participating 
in a rising market, rather than just a few dominant elites.

   On the losing end of Wall Street, UPS tumbled 13.5% after delivering weaker 
profit and revenue for the spring than analysts expected. But CEO Carol Tom 
said the company's U.S. business delivered more packages than a year earlier, 
its first such growth in nine quarters, and called it a "significant turning 
point for our company."

   Comcast dropped 1.6% after reporting revenue for the spring that fell short 
of expectations. Its biggest declines came from lower attendance at its U.S. 
theme parks and from its studios business, which didn't have as big hits as 
last year's "The Super Mario Bros." and "Fast X" movies.

   In stock markets abroad, indexes were mixed across Asia and Europe.

   Chinese markets were some of the weakest, and stocks fell 0.9% in Hong Kong 
and 1.6% in Shanghai. Analysts described moves by China's central bank to cut 
two key interest rates on Monday as not particularly inspiring.

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