Stock Market Today: Stocks slip amid best win streak since November

Updated at 4:45 PM EDT by Rob Lenihan

Stocks ended lower Tuesday, snapping the longest winning streak in 9 months as investors took a step back.

The Dow Jones Industrial Average lost 61.56 points, or 0.2%, to end the session at 40,834.97, while the S&P 500 slid 0.2% to 5,597.12 and the tech-heavy Nasdaq dropped 0.33% to 17,816.94.

In his weekly market update, John Lynch, Comercia Wealth Management's chief investment officer, said that “ a series of positive economic reports have reassured investors that the Federal Reserve will be able to cut rates before the economy tips into a recession.”

"Last week's economic data sent contained two important messages: inflation is decelerating sufficiently enough for a cut in September and the economy is doing well enough that 50 basis point (jumbo) cuts are probably not necessary," he said.

Updated at 11:36 AM EDT

Micron slip

Micron Technology MU shares are back in the red, extending their post-earnings slump to around 30%, even as analysts at Wolfe Research reiterated their 'overweight' rating and $200 price target on the AI memory chip maker.

"Our price target is based on approximately 10x $20 earnings power, which is largely in line with Micron's ~11x historical normalized multiple," said Wolfe's Chris Caso. "Micron is expecting ASPs to continue rising through CY25."

Micron shares were last marked 0.85% lower in late-morning trading and changing hands at $107.70 each.

Related: Analyst revisits Micron stock price target after post-earnings slump

Updated at 9:40 AM EDT

Modest dip

The S&P 500 was little-changed from last night's close in the opening minutes of trading rising less than a point. The Nasdaq was also muted, rising just 1.5 points.

The Dow, meanwhile, was marked 90 points lower, thanks in part to a 2.6% decline for Boeing, while the small-cap Russell 2000 slipped 3 points, or 0.15%.

Updated at 8:02 AM EDT

Weight-loss gains

Eli Lilly ( LLY ) shares moved higher in premarket trading after the drugmaker unveiled details from a study that showed its tirzepatide-based weight-loss treatments sharply reduced the risk of diabetes in overweight or obese patients.

Lilly said weekly injections reduced the risk of developing type-2 diabetes by 94% for patients in final results from the three-year study. They were first released as part of Lilly's attempt to get FDA approval for Zepbound and Mounjaro in 2022.

Eli Lilly shares were last marked 1.65% higher in premarket trading to indicate an opening bell price of $938.10.

Stock Market Today

Stocks extended their recent winning streak to an eighth session last night, with the S&P 500 rising 0.97% to take the benchmark to within just 1.05% of the all-time high it printed on July 16.

Stronger-than-expected data on consumer spending, job creation and business activity have combined to drive bets that the economy will avoid recession between now and year-end. Traders are anticipating quarter-point rate cuts from the Fed at each of its three upcoming meetings.

Treasury bond yields are reflecting those bets, as well, with rate-sensitive 2-year notes holding at 4.057% and benchmark 10-year note yields pegged at 3.873% heading into the start of the New York trading session.

The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.05% lower at 101.832, the lowest since late December.

Related: For Kamala Harris, stars align as recession risks fade and inflation slows

On Wall Street, stocks look set for a muted open, with futures contracts tied to the S&P 500 indicating a 3-point advance while those linked to the Dow Jones Industrial Average are priced for a 9-point decline. The tech-focused Nasdaq, meanwhile, is called 23 points higher.

Stocks on the move include Lowe's ( LOW ) , which slipped 0.1% after the home improvement retailer cut its full-year profit forecast following a stronger-than-expected second-quarter earnings report.

Boeing ( BA ) shares fell 0.9% The planemaker paused test flights of its 777-9 jet after finding structural issues with a component during maintenance checks.

Palo Alto Networks ( PANW ) , meanwhile, jumped 2.22% after the cybersecurity group topped Wall Street earnings forecasts and lifted its 2024 profit forecast. PANW looks to benefit from the fallout from CrowdStrike's ( CRWD ) software update chaos.

More Wall Street Analysts:

• Analysts reboot Amazon stock price targets after earnings
• Analyst reboots Rivian stock price target on updated plans
• Analysts reboot Arm Holdings stock price target following earnings

In Europe, stocks were largely tracking U.S. futures with the Stoxx 600 slipping 0.09% despite dovish comments on rate cuts from ECB Governing Council member Olli Rehn. Britain's FTSE 100 was down 0.68% in London.

Overnight in Asia, the Nikkei 225 rose 1.8% on the session in a follow-on move from last night's rally on Wall Street, while the regional MSCI ex-Japan benchmark edged 0.32% higher into the close of trading.

Related: Veteran fund manager sees world of pain coming for stocks