The performance of US benchmark equity indexes took a downturn on Tuesday as investors navigated through the latest batch of corporate earnings reports while eagerly anticipating the financial results from major players such as Alphabet and Tesla. One notable observation was the deceleration in existing-home sales, which cooled to a seasonally adjusted annual rate of 3.89 million in June.
This marks a decrease from May's unrevised rate of 4.11 million, falling below the anticipated 3.99 million predicted in a Bloomberg survey. Lawrence Yun, Chief Economist at the National Association of Realtors, commented on this shift, indicating that the dynamics of supply and demand are approaching a more sustainable balance and hinted at a gradual transition towards a seller's market. In retail, the latest Redbook report indicated that same-store sales in the US rose by 4.9% year-over-year during the week ending July 20.
This growth outpaced the previous week's figure of 4.8%, attributed to favorable warm weather, seasonal tax holidays, and the impact of Amazon Prime Days. On the commodities front, September West Texas Intermediate crude oil witnessed a decline of $1.03, closing at $77.37 per barrel. Meanwhile, September Brent crude, regarded as the global benchmark, was recently observed down by $0.98, settling at $81.42.
These movements come as the market enters a summer lull, anticipating upcoming data on the U.S. economy and oil inventories. In the technology sector, Spotify Technology celebrated a successful second quarter, reporting profits that exceeded expectations, propelled by stronger-than-anticipated growth in its premium subscription segment.
Following this positive report, the company saw its shares on the New York Stock Exchange soar by over 12%. Conversely, United Parcel Service faced challenges, falling short of its second quarter estimates. The company revised its full-year revenue expectations downwards, anticipating that US customers may continue to prefer lower-cost service alternatives.
As a consequence, UPS's shares took a nosedive, experiencing nearly a 13% drop. Overall, these developments highlight the complexities and fluctuations within the current market environment, influenced by consumer behavior shifts and significant corporate earnings outcomes..