US stocks edge lower amid disappointing corporate earnings results

Shannon Stapleton/Reuters

  • US stocks fell on Tuesday as investors weighed a string of disappointing corporate earnings results.
  • Shares of AIG,Bayer, and Diageo slipped in Europe after disappointing earnings.
  • Investors are anxiously awaiting new details on a coronavirus relief bill as Congress debates stimulus details.
  • Read more on Business Insider.

US stocks fell on Tuesday as investors weighed a string of disappointing corporate earnings results.

Shares of AIG slumped Tuesday after the company reported that quarterly adjusted earnings plummeted 56% due to catastrophe and private-equity losses.

Bayer also fell after saying it slipped to a net loss in the second quarter due to a settlement alleging that Roundup herbicides cause cancer. The company also lowered its outlook due to the coronavirus pandemic.

Diageo– the maker of Guiness beer, Smirnoff vodka, and Johnny Walker whiskey – fell after the company reported that the coronavirus pandemic weighed on sales, sending operating profit down in the quarter.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

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Still, there were some bright spots in earnings. Shares of BP jumped after the company cut its dividend for the first time in a decade.Take Two Interactive, the company behind video games such as Grand Theft Auto, rose after saying sales more than doubled in the last quarter amid the coronavirus pandemic. The company also raised its full-year forecast.

The recent rally in technology shares, which sent the Nasdaq to a record high close on Monday, took a breather. Shares of Microsoft dipped in early trading.

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Investors also awaited further news on negotiations for another coronavirus aid package. Democrats and Republicans are still debating the potential extension of the $US600 additional weekly unemployment benefit. While Democrats want to extend the benefit, Republicans want to lower the weekly amount.

The clock is ticking for the two sides to come to an agreement as the Senate is scheduled to leave for a summer break on Friday. The same day, the government will release its nonfarm payrolls report for July.

Oil fell. West Texas intermediate crude slipped as much as 2.1%, to $US40.14 per barrel. Brent crude, the international benchmark, fell 2.1%, to $US43.24 per barrel, at intraday lows.

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