U.S. Stocks Open Mixed on Tuesday; IBM Plunges 22% on Earnings Miss, HSBC Downgrade and AI Competitive Pressure

Tiger Newspress07-14 21:33

The S&P 500 rose on Tuesday after June inflation data came in weaker than expected, though the index's gain was kept in check as traders assessed rising oil prices and a slew of corporate earnings releases.

The broad market index was up 0.2%, while the Nasdaq Composite advanced 0.5%. The Dow Jones Industrial Average fell 88 points, or 0.2%.

IBM's preliminary second-quarter revenue forecast ​came below Wall Street estimate ‌on Tuesday, as customers prioritized spending on AI infrastructure, including servers, ​storage and memory purchases, sending ​its shares slumping 22% in ⁠market trading.

The results reflect an ​industry-wide shift in technology spending ​toward AI infrastructure, reducing budgets for traditional software.

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