The major averages finished lower Tuesday. Stocks retreated from record highs after President Trump said China and the U.S. have a “long way to go” on the trade front. The Dow dropped 23 points, while the S&P 500 lost 0.3%. The Nasdaq Composite declined 0.4%.
In earnings, JPMorgan shares advanced 1.1% as the bank’s 16% jump in year-over-year profit outweighed disappointing net interest income guidance. Goldman Sachs gained 1.8% after posting earnings and revenue above analyst forecasts. Elsewhere, Johnson and Johnson slipped 1.7% as concerns over ongoing lawsuits offset the Health Care giant’s positive second-quarter results. In the Industrial space, J.B. Hunt Transport jumped 5.6% as upbeat commentary from management on volume trends overshadowed an earnings miss.
On the data front, retail sales rose at a solid 0.4% in June, exceeding expectations. Separately, import prices fell 0.9% in June, the largest decline in six months, while export prices also dipped 0.7%. Tuesday’s positive economic data sent Treasuries lower with the yield on the 10-year note rising two basis points to 2.11%. In commodities, WTI crude slid 2.6% to $58.03/barrel amid Iran’s willingness to negotiate with the U.S. concerning its missile program.
In central bank news, Federal Reserve Chair Jerome Powell said in a speech today that policymakers will “carefully monitor” downside risks to U.S. growth and “act as appropriate” to stimulate the economy. Powell’s remarks at the Bank of France echoed his recent testimony to Congress on July 10th and 11th in support for easier monetary policy at the upcoming Fed meeting.