Stocks traded lower Tuesday, a day after solid corporate earnings pushed equities to all-time highs and lifted optimism that the U.S. economy was on a path to recovery.
The Dow Jones Industrial Average fell 8 points, or 0.03%, to 33,972, the S&P 500 slipped 0.1% and the Nasdaq was down 0.31%.
Tesla was falling 3.57% Tuesday after the electric vehicle company posted stronger-than-expected first-quarter earnings thanks in part to surging deliveries in China. The electric vehicle company notched its seventh-consecutive quarterly profit and net profit on a GAAP basis reached a quarterly record of $438 million.
General Electric reported first-quarter earnings that topped analysts’ estimates and the industrial conglomerate repeated its full-year profit forecast. The stock, however, declined 2.65% on Tuesday.
Earnings reports are expected after Tuesday’s closing bell from Alphabet , Advanced Micro Devices , Microsoft and Starbucks .
Video: Stocks set for modest gains at open after S&P 500, Nasdaq close at records (CNBC)
According to FactSet, a quarter of the companies in the S&P 500 have so far reported first-quarter results, and 84% of them have topped analysts’ expectations. That is above the 77% one-year average and a record high, FactSet said, since it started tracking the data in 2008.
TheStreet’s founder, Jim Cramer, said in a tweet that the next 72 hours were the “most important”of the year.
The Federal Reserve begins a two-day meeting Tuesday. Investors don’t expect the central bank to make any policy changes and to leave asset purchases unchanged. However, Wall Street will be paying close attention to indications of when the Fed might begin to trim its $120 billion in monthly asset purchases and its outlook on inflation.
Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence, said she believes the Fed’s expected announcement on Wednesday afternoon to be “arguably the most important statement so far this year, as investors are increasingly trying to figure out when the Fed may start to pare back its COVID-19-related stimulus, since the economy is recovering at a faster-than-expected rate.”
This article was originally published by TheStreet.