Stocks fell from record highs on Tuesday after President Donald Trump cast doubt on the trade progress between China and the U.S.
The Dow Jones Industrial Average erased 23.53 points from Monday’s all-time high to 27,335.63, ending a four-day winning streak.
The S&P 500 docked 10.26 points to 3,004.04, and snapped a five-day winning streak.
The NASDAQ Composite slid 35.39 points to 8,222.80
Goldman Sachs’s strong results were driven by the company’s investment banking and trading divisions. Goldman shares rose 1.9%.
J.P. Morgan Chase’s results also topped estimates and its stock rose 1.1%. Johnson & Johnson, however, fell 1.6% despite reporting a 42% profit surge in the previous quarter
So far, just over 5% of S&P 500 companies have reported calendar second-quarter earnings. Of those companies, more than 85% have posted better-than-expected earnings.
Investors will welcome the strong start to the earnings season, but the outlook for corporate profits remains bleak. Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter.
United Airlines and CSX are among the companies due to report after the bell Tuesday. Morgan Stanley, BlackRock, and American Express are scheduled to report earnings later this week.
Trump said the two countries have a "long way to go" on trade, adding the U.S. can slap tariffs on an additional $325 billion worth of Chinese goods "if we want."
Trump’s comments come after China and the U.S. agreed not to ratchet up trade tensions in an effort to restart negotiations. China and the U.S. have slapped tariffs on billions of dollars worth of each other’s imports since last year. The ongoing trade war has sparked fear of slower economic growth around the world. They also come as the U.S. corporate earnings season kicks into full gear.
Prices for the benchmark 10-year U.S. Treasury ducked, raising yields to 2.11% from Monday’s 2.09%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.53 at $58.05 U.S. a barrel.
Gold prices slid eight dollars to $1,405.50 U.S. an ounce.
