NEW YORK: US stock indexes fell on Tuesday as investors turned cautious ahead of a key inflation reading this week, while dour earnings forecasts from companies such as PayPal and Apple supplier Skyworks weighed on the mood.
Shares of PayPal Holdings dropped 12% and led declines on the benchmark S&P 500 index after the company cut its margin forecast. They were also among the top drags on the Nasdaq Composite index.
Skyworks Solutions Inc shares slid 5.9% after forecasting current-quarter revenue and earnings below estimates.
Shares of other Apple suppliers including Qualcomm, Broadcom, Qorvo and Corning fell between 1.2% to 2%. The Philadelphia SE Semiconductor Index was down 2.1%.
The action-packed week will see the release of the much-awaited inflation data on Wednesday. The Labor Department’s consumer price index (CPI) is expected to climb 0.4% in April after gaining 0.1% in March.
At 12:42 p.m. ET, the Dow Jones Industrial Average was down 81.53 points, or 0.24%, at 33,537.16, the S&P 500 was down 19.46 points, or 0.47%, at 4,118.66, and the Nasdaq Composite was down 78.10 points, or 0.64%, at 12,178.82.
Under Armour Inc lost 6.3% as the sports apparel maker saw its annual sales and profit below street expectations.
Dialysis services provider DaVita Inc jumped 13.9% on raising its annual profit forecast as demand for procedures pickup in the US Declining issues outnumbered advancers for a 1.93-to-1 ratio on the NYSE and for a 1.77-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and 12 new lows, while the Nasdaq recorded 52 new highs and 130 new lows.
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