US open: Stocks edge higher as traders weigh CPI slowdown, bank earnings

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

As of 1445 BST, the Dow Jones Industrial Average was up 0.09% at 52,545.67, while the S&P 500 advanced 0.26% to 7,534.53, and the Nasdaq Composite came out of the gate 0.53% firmer at 26,011.00.

The Dow opened 47.03 points higher on Tuesday, taking a bite out of losses recorded in the previous session after Donald Trump said he was reinstating what he described as a blockade on Iranian shipping through the Strait of Hormuz, sending oil prices sharply higher.

Tuesday's primary focus will be 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 early 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. 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.

Still to come, Federal Reserve chairman Kevin Warsh will head to Capitol Hill to deliver testimony at 1500 BST.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $1,098.25 4.49%

Caterpillar Inc. (CAT) $957.64 2.81%

Intel Corp. (INTC) $106.82 2.45%

Dow Chemical Co. (DOW) $30.85 1.68%

JP Morgan Chase & Co. (JPM) $339.42 1.46%

3M Co. (MMM) $159.68 1.14%

Boeing Co. (BA) $217.54 0.96%

Home Depot Inc. (HD) $339.94 0.67%

Unitedhealth Group Inc. (UNH) $431.83 0.46%

American Express Co. (AXP) $357.35 0.31%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $220.57 -23.91%

Salesforce.Com Inc. (CRM) $165.76 -4.12%

Merck & Co. Inc. (MRK) $121.91 -1.71%

Apple Inc. (AAPL) $314.35 -1.46%

Microsoft Corp. (MSFT) $383.40 -1.23%

Johnson & Johnson (JNJ) $254.56 -1.20%

Amgen Inc. (AMGN) $356.27 -1.15%

Procter & Gamble Co. (PG) $147.12 -1.02%

Visa Inc. (V) $357.87 -0.52%

Travelers Company Inc. (TRV) $340.74 -0.48%

S&P 500 - Risers

Micron Technology Inc. (MU) $972.21 6.62%

Western Digital Corp. (WDC) $580.14 6.02%

Lam Research Corp. (LRCX) $349.12 5.21%

Goldman Sachs Group Inc. (GS) $1,098.25 5.11%

Advanced Micro Devices Inc. (AMD) $559.11 4.97%

Newmont Corporation (NEM) $97.64 4.87%

KLA-Tencor Corp. (KLAC) $231.97 4.87%

Fortinet Inc. (FTNT) $165.05 4.72%

Hewlett Packard Enterprise (HPE) $49.44 4.66%

Freeport-McMoRan Inc (FCX) $62.49 4.32%

S&P 500 - Fallers

International Business Machines Corporation (CDI) (IBM) $220.57 -23.91%

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

Stryker Corp. (SYK) $312.65 -5.67%

HCA Healthcare Inc (HCA) $369.92 -5.50%

Baxter International Inc. (BAX) $21.42 -5.43%

Intuitive Surgical Inc. (ISRG) $389.77 -4.88%

Boston Scientific Corp. (BSX) $42.98 -4.71%

Zimmer Biomet Holdings Inc (ZBH) $89.92 -4.66%

Gartner Inc. (IT) $135.40 -4.45%

Synopsys Inc. (SNPS) $430.67 -4.36%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $972.21 6.61%

Western Digital Corp. (WDC) $580.14 6.02%

Lam Research Corp. (LRCX) $349.12 5.00%

KLA-Tencor Corp. (KLAC) $231.97 4.87%

Seagate Technology Plc (STX) $894.28 3.86%

Applied Materials Inc. (AMAT) $598.97 3.42%

Microchip Technology Inc. (MCHP) $88.10 3.23%

Analog Devices Inc. (ADI) $398.97 2.95%

Vodafone Group Plc ADS (VOD) $15.68 2.45%

Liberty Global plc Series A (LBTYA) $10.93 2.29%

Nasdaq 100 - Fallers

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

Baidu Inc. (BIDU) $107.92 -6.28%

Workday, Inc. (WDAY) $135.80 -5.09%

Intuitive Surgical Inc. (ISRG) $389.77 -4.88%

Synopsys Inc. (SNPS) $430.67 -4.36%

Marriott International - Class A (MAR) $363.34 -3.34%

Cadence Design Systems Inc. (CDNS) $377.99 -3.17%

Wynn Resorts Ltd. (WYNN) $96.84 -3.13%

American Airlines Group (AAL) $16.10 -2.97%

Adobe Systems Inc. (ADBE) $220.76 -2.97%