The S&P 500 and the tech-heavy Nasdaq Composite were up Tuesday, led by the resurgent artificial-intelligence trade, as investors responded to cooler-than-expected U.S. inflation data for June, a slew of bank earnings reports, and a profit warning from IBM that sent the stock down sharply.
International Business Machines sank 25%, placing it at the bottom of the S&P 500, after the company's preliminary second-quarter adjusted earnings and revenue missed analysts' targets. CEO Arvind Krishna explained that the shortfall was largely driven by the company's infrastructure business.
CrowdStrike rose 11%, leading the S&P 500 for the trading session. The cybersecurity stock was advancing on comments from IBM's CEO that customers "were distracted with rapidly-evolving, industrywide cybersecurity concerns in the quarter." Palo Alto Networks gained 6.5%, Fortinet added 3.3%, Zscaler advanced 7.4%, Okta rose 9.9%, and SentinelOne was up 5.4%.
Goldman Sachs rose 8% to $1,129.49 and was set to close at a record high after reporting a record $7.42 billion in stock trading in the second quarter, topping Wall Street's $5 billion estimate.
JPMorgan Chase advanced 1.5% after the Wall Street giant's second-quarter earnings and revenue topped analysts' expectations. Bank of America gained 1.3%, and Wells Fargo dropped 3.2% following their own second-quarter earnings beats.
Citigroup fell 5.7% after the bank reported second-quarter profit of $3.15 a share, beating analysts' consensus.
Lucid Group plunged 42% after an electric-vehicle newsletter suggested the company was considering filing for bankruptcy. Lucid denied the report.
"The rumors are completely false," Lucid said in an emailed statement to Barron's. "The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today."
Advanced Micro Devices added 3.7% and Intel added 4.9%. Micron gained 5% and Nvidia advanced 4% as investors piled back into chip makers, which took a battering on Monday. Optical networking names Lumentum and Coherent advanced 5.2% and 0.7%, respectively.
SK Hynix soared 24% to $188.14. Barclays initiated coverage of the shares with an Overweight rating and $330 price target. The memory-chip company also looks to be reaping the benefits of its recent U.S. listing as its American depositary receipts outpace its South Korean shares.
SpaceX dropped 0.5% to $138.38 . Evercore ISI launched coverage of Elon Musk's rocket and AI company with a Buy rating and a $230 price target. The stock was trading slightly above its initial public offering price of $135.
Apple declined 0.7% to $315.13 after KeyBanc analyst Brandon Nispel downgraded the stock to Underweight and assigned shares a $250 price target. The analyst cited slowing iPhone, MacBook, and iPad sales for the reason for the downgrade.
Tower Semiconductor jumped 13% after the Israel-based chip company announced a $3 billion expansion plan in Japan and hiked its 2028 outlook.
BP rose 1.6% after the British energy major said it expects to make more money from oil trading, as a flare-up in tensions in the Middle East triggers swings in crude prices.
HCA Healthcare declined 7.5% after the hospital chain reported preliminary second-quarter revenue above Wall Street's expectations but reduced its full-year profit outlook.
Biogen fell 6.4% after the company's detailed presentation on its recent experimental Alzheimer's drug Phase 2 study failed to boost investor confidence. RBC analysts wrote the presentation leaves "more questions than answers" while Stifel noted that Biogen was likely to face questions on safety and dose response.
Write to George Glover at george.glover@dowjones.com and Kit Norton at kit.norton@barrons.com
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July 14, 2026 15:04 ET (19:04 GMT)
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