US close: Stocks eke out gains as CPI cools, bank earnings impress

(Sharecast News) - Major indices were in the green at the close on Tuesday, with traders balancing rising US-Iran tensions against June inflation data and a fresh batch of bank earnings.

At the close, the Dow Jones Industrial Average was up 0.02% at 52,508.27, while the S&P 500 advanced 0.38% to 7,543.59, and the Nasdaq Composite saw out the session 0.90% firmer at 26,107.01.

The Dow closed just 9.63 points higher on Tuesday, doing little to reverse losses recorded in the previous session.

Tuesday's primary focus was undoubtedly June's consumer price index, which slipped to 333.95 in June, down from 335.12 in May, while the annual inflation rate eased to 3.5%, marking its first decline in five months and coming in below forecasts of 3.8%. According to the Bureau of Labor Statistics, energy inflation cooled sharply to 15.7%, down from 23.5% in May, helped by reduced price pressures following the ceasefire between the US and Iran. Gasoline prices rose 26.7% yearonyear, compared with 40.5% previously, while fuel oil inflation slowed to 42.9% from 58.9%. Price growth also moderated in shelter, at 3.3% versus 3.4%, and in food, at 3% compared with 3.1%.

So-called core inflation eased to 2.6% in June, down from a sevenmonth high of 2.9% in May and below expectations of 2.8%, with the slowdown reflecting a modest cooling in shelter costs, at 3.3% versus 3.4%, alongside softer price increases across several categories, including airline fares, apparel, medical care, and household furnishings and operations. Monthonmonth, core consumer prices were unchanged, following a 0.2% rise in May and undershooting forecasts for another 0.2% increase.

Bank earnings were also firmly in focus on Tuesday, with Bank of America posting a 15% rise in revenue, net of interest expense, to about $31.7bn in the second quarter, with growth driven by stronger net interest income and a sharp increase in investmentbanking fees. Earnings per share came in at $1.21, ahead of the $1.13 expected, while revenue also topped forecasts of $30.72bn.

JPMorgan Chase delivered a standout performance in equities trading, with revenue surging 86% to $6bn, beating expectations by $2.11bn. Fixedincome trading rose 6% to $6.1bn, just shy of the $6.22bn StreetAccount estimate. Earnings per share were $6.14, excluding significant items, while revenue totalled $58.02bn, well above the $50.19bn expected.

Elsewhere, Wells Fargo reported secondquarter earnings that came in ahead of expectations, with earnings per share of $2.00 versus $1.72 forecast and revenues that rose to $22.62bn, compared with expectations of $21.84bn, while Goldman Sachs posted a strong set of secondquarter numbers on Tuesday, with net earnings jumping 78% to $6.6bn, or $21 per share, fuelled by a surge in fees from stock trading and dealmaking, while Citigroup also beat Wall Street forecasts after reporting its highest quarterly revenue in a decade, supported by robust trading income in volatile markets and stronger investmentbanking activity.

Elsewhere on the macro front, the National Federation of Independent Business' small business optimism index rose to 97.4 in June, its highest level in four months, up from 95.3 in May and above expectations of 95.8. June's increase reflected stronger expectations for improved business conditions and higher real sales. However, inflation remained the mostcited problem, with 21% of respondents identifying it as their biggest challenge - a threepoint rise on the month and the highest reading since October 2024.

On another note, the Federal Reserve's new chair insisted to US lawmakers that the surge in inflation seen over the last five years will become "a thing of the past". In pre-prepared remarks, Kevin Warsh - who was named as Jerome Powell's successor in May - told the House of Representatives' Financial Services Committee that the central bank's "number one objective" was to get monetary policy right, "or as near to it as we possibly can". He continued: "That is our clear and constant aim, the star we steer by. And if we get that policy right - and we will - then inflation surge of the last five years will be a thing of the past." As well appearing for the first time before the Financial Services Committee, Warsh was also scheduled to appear before the Senate Banking Committee on Wednesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $1,140.00 9.27%

Intel Corp. (INTC) $107.76 3.18%

JP Morgan Chase & Co. (JPM) $342.89 2.50%

Boeing Co. (BA) $217.11 0.82%

Home Depot Inc. (HD) $337.74 0.35%

Caterpillar Inc. (CAT) $933.34 0.29%

American Express Co. (AXP) $355.06 0.18%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $217.07 -25.21%

Merck & Co. Inc. (MRK) $120.80 -2.60%

Salesforce.Com Inc. (CRM) $167.56 -2.13%

Nike Inc. (NKE) $42.86 -1.86%

Cisco Systems Inc. (CSCO) $117.08 -1.73%

Johnson & Johnson (JNJ) $253.85 -1.52%

Procter & Gamble Co. (PG) $146.09 -1.50%

Apple Inc. (AAPL) $314.86 -1.49%

McDonald's Corp. (MCD) $268.94 -1.35%

Amgen Inc. (AMGN) $355.25 -1.34%

S&P 500 - Risers

Goldman Sachs Group Inc. (GS) $1,140.00 9.27%

Micron Technology Inc. (MU) $983.12 7.27%

Fortinet Inc. (FTNT) $166.83 6.21%

Hewlett Packard Enterprise (HPE) $49.56 4.91%

NetApp Inc. (NTAP) $174.55 4.88%

Lam Research Corp. (LRCX) $346.31 4.17%

KLA-Tencor Corp. (KLAC) $230.37 3.78%

Freeport-McMoRan Inc (FCX) $61.97 3.33%

Morgan Stanley (MS) $228.17 3.27%

State Street Corp. (STT) $183.65 3.19%

S&P 500 - Fallers

International Business Machines Corporation (CDI) (IBM) $217.07 -25.21%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Intuitive Surgical Inc. (ISRG) $379.47 -7.21%

HCA Healthcare Inc (HCA) $363.60 -6.70%

Skyworks Solutions Inc. (SWKS) $56.57 -6.00%

Stryker Corp. (SYK) $311.27 -5.99%

American Airlines Group (AAL) $15.67 -5.91%

Gartner Inc. (IT) $132.97 -5.90%

Dxc Technology Company (DXC) $9.16 -5.72%

Synopsys Inc. (SNPS) $425.90 -5.35%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $983.12 7.27%

Lam Research Corp. (LRCX) $346.31 4.17%

KLA-Tencor Corp. (KLAC) $230.37 3.78%

Intel Corp. (INTC) $107.76 3.18%

DENTSPLY Sirona Inc. (XRAY) $12.70 3.17%

Western Digital Corp. (WDC) $563.26 2.98%

Applied Materials Inc. (AMAT) $595.70 2.82%

Henry Schein Inc. (HSIC) $86.91 2.53%

Check Point Software Technologies Ltd. (CHKP) $137.02 2.38%

Gen Digital Inc. (GEN) $26.57 2.15%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Intuitive Surgical Inc. (ISRG) $379.47 -7.21%

Skyworks Solutions Inc. (SWKS) $56.57 -6.00%

American Airlines Group (AAL) $15.67 -5.91%

Synopsys Inc. (SNPS) $425.90 -5.35%

Baidu Inc. (BIDU) $109.76 -4.80%

eBay Inc. (EBAY) $112.54 -4.32%

QUALCOMM Inc. (QCOM) $178.10 -4.10%

Wynn Resorts Ltd. (WYNN) $95.90 -4.07%

Biogen Inc (BIIB) $191.91 -3.84%