US stocks ticked lower on Tuesday as mixed earnings reports dented investor optimism entering the earnings season, while lower expectations of global growth also weighed on sentiment. The S&P and the Nasdaq were pulled down by Netflix and health stocks, while the Dow's fall was cushioned by Johnson & Johnson's strong results.
Strong economic data had sent stocks on a record-setting run through most of last week, and second-quarter earnings reports are expected to justify higher valuations. While most S&P companies that have reported so far have beaten profit estimates, their outlooks have not been as encouraging. J&J, UnitedHealth, Goldman Sachs and Lockheed Martin all beat profit estimates for the quarter, but only J&J's stock stayed up after rising 2.1 percent to a record high of $125.75.
UnitedHealth fell 0.2 percent after saying the Obamacare program would reduce 2016 earnings; Goldman Sachs dropped 1.3 percent as its profit beat wasn't considered as impressive as those of its peers. Lockheed Martin eased off a record high after saying it did not plan to step up production of its mainstay F-35 fighter jets program. Netflix slumped 13.5 percent to $85.50 after its quarterly subscriber numbers and forecast missed estimates. It weighed the most on the Nasdaq and the S&P 500.
At 12:34 pm ET (1634 GMT), the Dow Jones Industrial Average was down 9.52 points, or 0.05 percent, at 18,523.53. The S&P 500 was down 6.17 points, or 0.28 percent, at 2,160.72. The Nasdaq Composite was down 19.80 points, or 0.39 percent, at 5,035.99. All 10 major S&P indexes were lower, led by the materials sector's 0.86 percent decline.