S&P 500 falls to start August as the busiest week of the earnings season continues: Live updates

Gap shares rose more nearly 2% in premarket trading after Barclays got off the sidelines on the retailer’s stock.

Analyst Adrienne Yih upgraded the retailer to overweight from equal weight. CNBC Pro subscribers can see her reasoning here.

— Alex Harring

JetBlue Airways shares shed nearly 8% after the airline slashed its full-year outlook as more consumers choose to travel abroad.

The company said it now expects full-year earnings to range from 5 cents to 40 cents per share, down from a previous estimate of as much as $1. JetBlue also said it anticipates a loss for the current quarter and decline in revenue from a year ago.

Despite Tuesday’s stock move, the airline reported earning roughly in line with analysts expectations, posting EPS of 45 cents on $2.61 billion in revenue. Analysts polled by Refinitiv had expected EPS of 44 cents and $2.61 billion in sales.

JetBlue is also dealing with the fallout from the end of its partnership with American Airlines in the Northeast.

Other airline stocks moved lower on the news, with American, Delta Air Lines and United Airlines last down more than 3% each. Southwest Airlines lost 2.4%.

— Samantha Subin, Leslie Josephs

The ISM manufacturing PMI came in at 46.4, lower than the StreetAccount estimate of 46.9. This marks the ninth straight month the index has been in contractionary territory. (A number above 50 indicates expansion; one below 50 indicates contraction).

However, the print is an uptick from June’s 46 number.

“Demand remains weak but marginally better compared to June, production slowed due to lack of work, and suppliers continue to have capacity. There are signs of more employment reduction actions in the near term to better match production output,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said in a statement.

— Fred Imbert

Ten low-cost ETFs are getting even cheaper on Tuesday, according to State Street.

The asset manager is reducing fees for 10 members of its portfolio ETF suite. The 10 funds hold more than $70 billion in combined assets, led by the SPDR Portfolio S&P 500 ETF (SPLG) at roughly $20 billion in assets under management.

Check out the full list of funds impacted here.

— Jesse Pound

SoFi lost 2.5% before the bell on Tuesday after KBW said investors should sell the financial technology stock following its recent rally.

“We believe valuation has overshot the fundamental earnings outlook,” analyst Michael Perito said in a note to clients downgrading the stock to underperform from market perform.

CNBC Pro subscribers can read more here.

— Alex Harring

These are some of the stocks making the biggest moves before the bell:

Read the full list of stocks moving here.

— Pia Singh

Estee Lauder dipped more than 1% before the bell after Citi cautioned that challenges in its Asia business could spell bad news in the short term.

“We remain optimistic about the long-term revenue and margin opportunities at EL, but we expect weaker results over the next few quarters with negative incremental data points,” analyst Filippo Falorni said when downgrading the beauty company’s stock to neutral from buy.

CNBC Pro subscribers can click here to read the full story.

— Alex Harring

The ridesharing stock jumped more than 4% before the bell after posting its first-ever GAAP operating profit.

Uber Technologies reported earnings of 18 cents per share. That far exceeded the 1-cent loss expected by analysts polled by Refinitiv. Revenue came in at $9.23 billion, slightly below the expected $9.33 billion and grew 14% on a year-over-year basis.

Gross bookings also came in slightly ahead of estimates and rose 16% from a year ago to $33.60 billion. Analysts polled by FactSet had expected $33.49 billion.

Uber said it expects gross bookings to come in between $34 billion to $35 billion and an adjusted EBITDA of $975 million to $1.025 billion in the third quarter. Both estimates come in ahead of analyst expectations, according to StreetAccount.

— Samantha Subin, Ashley Capoot

Caterpillar shares moved slightly higher before the bell after the heavy machinery maker reported second-quarter results that topped expectations helped by greater equipment demand and higher sales across its major segments.

The company reported adjusted earnings of $5.55 per share on $17.32 billion in revenue. That surpassed the EPS of $4.58 and revenues of $16.49 expected by Wall Street analysts, according to Refinitiv.

— Samantha Subin

Pfizer shares moved slightly lower after the drugmaker reported mixed second-quarter results.

The company posted adjusted earnings of 67 cent per share, topping the 57 cents expected by analysts, per Refinitiv. Revenue came in at $12.73 billion, falling short of the expected $13.27 billion due to lower Covid-related sales.

— Samantha Subin

Merck posted a smaller-than-expected loss and revenue that exceeded expectations thanks to strong Keytruda sales. The company’s numbers reflect a $10.2 billion charge related to its acquisition of Prometheus, a company that specializes in autoimmune disease treatments.

— Fred Imbert

U.S. Treasury yields were little changed on Tuesday as investors awaited key data that could provide fresh hints about the state of the economy and influence the Federal Reserve’s monetary policy.

At 3:40 a.m. ET, the yield on the 10-year Treasury was up by less than one basis point to 3.9669%. The 2-year Treasury yield was less than one basis point lower at 4.8641%.

China’s factory activity fell into contraction territory for the first time since April, according to the Caixin survey compiled by S&P Global.

The purchasing managers index came in at 49.2 in July, in contrast to the 50.3 figure expected by economists polled by Reuters.

A PMI reading of above 50 indicates expansion, while a reading below 50 indicates contraction.

The Caixin survey comes a day after official statistics showed that the country’s factory activity contracted for a fourth straight month, with a PMI reading of 49.3.

— Lim Hui Jie

South Korea’s factory activity contracted for a 13th straight month, according to private surveys from S&P Global.

The manufacturing purchasing managers index came in at 49.4 in July, which is its softest contraction in a year.

S&P Global wrote that this was due to a slower reduction in output levels in July, in part due to a renewed expansion in exports.

This is also in addition to positive indications for demand conditions in July, which led manufacturers to increase staffing levels for the third month in a row. Input costs also fell for the first time in just over three years and at the fastest pace since July 2017.

— Lim Hui Jie

Japan’s seasonally adjusted unemployment rate fell to 2.5% in June, slightly lower from 2.6% a month earlier, government data showed.

The figure is in line with expectations of economists polled by Reuters.

Japan’s jobs to applicants ratio came in at 1.3 for June, slightly lower than the Reuters forecast of 1.32.

— Lim Hui Jie

The Dow Jones Industrial Average was in the spotlight after its historic 13-day winning run in July – but the true standout in the month was the Russell 2000.

The small cap benchmark wrapped up July with a nearly 6.1% gain. In comparison, the S&P 500 and the Dow climbed more than 3%, while the Nasdaq Composite added about 4.1%.

Constituents in the Russell 2000 include data storage name Super Micro Computer, up 32% in July, and artificial intelligence sensation C3.ai, which advanced 15%.

–Darla Mercado, Jason Gewirtz

The dollar has climbed 2.3% since bottoming in mid-July, presenting another headwind to continued equity market strength.

“We don’t see the dollar weakening further until we get clear signs of improvement in the global growth outlook, with the greenback more prone to a short-term rebound in our view,” Barclays equity strategist Venu Krishna wrote on Monday.

The dollar’s weakness over the past year has proven a tailwind to U.S. corporate profits of those companies with a high degree of international sales. Higher overseas sales denominated in euros or yen translate into more dollars when the dollar is weak, and fewer dollars when the currency is strong.

But now, disinflation in the U.S., “accompanied by resilient growth” rather than macroeconomic weakness seen in the rest of the world, especially China and Europe, plus “signs of a potential bottoming out in USD speculative futures” means that “the trade-down in the dollar looks technically stretched,” Barclays told clients.

— Scott Schnipper, Michael Bloom