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U.S. markets fall from records as investors await earnings reports from tech giants

All three major indexes snapped six-day winning streaks on Tuesday as Alphabet, Apple and Microsoft were set to report second-quarter earnings. File Photo by John Angelillo/UPI
All three major indexes snapped six-day winning streaks on Tuesday as Alphabet, Apple and Microsoft were set to report second-quarter earnings. File Photo by John Angelillo/UPI | License Photo

July 27 (UPI) -- U.S. markets snapped a six-day winning streak on Tuesday as several tech giants were set to report earnings.

The Dow Jones Industrial Average fell 85.79 points, or 0.25%, while the S&P 500 dipped 0.47% and the Nasdaq Composite closed the day down 1.21% as all three major indexes fell from records set in the previous session.

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UPS stock fell 7% after it reported domestic revenue below analysts' estimates.

Tesla stock also reversed Monday's gains falling 1.95% on Tuesday despite reporting a record $1.14 billion in net income.

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Shares of Google's parent company, Alphabet, fell 1.59%, while Apple declined 1.49% and Microsoft dipped 0.87% as the three companies were set to report earnings after the bell.

The Conference Board's July consumer confidence index came in at 129.1 for the month, surpassing estimates to reach its highest level since the start of the COVID-19 pandemic.

"Consumers' appraisal of present-day conditions held steady, suggesting economic growth in Q3 is off to a strong start," said Lynn Franco, senior director of economic indicators at The Conference Board. "Consumers' optimism about the short-term outlook didn't waver, and they continued to expect that business conditions, jobs and personal financial prospects will improve."

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Markets were also anticipating the Federal Reserve's update on its monetary policy after its two-day meeting began Tuesday, as the International Money Fund warned inflation could push the central bank to take pre-emptive action.

"I empathize with Fed Chair Jay Powell as he walks a delicate tightrope -- preparing markets for tapering while assuring that the Fed will be very patient and thoughtful as it starts its normalization process," Invesco Chief Global Market Strategist Kristina Hooper said in a note.

The Federal Open Market Committee will release a statement at the end of the meeting Wednesday and Powell will also hold a press conference.

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