JetBlue Climbs 12.3% After Surprising Analysts

More drops for Big Tech stocks kept US stock indexes in check on Tuesday.

• The S&P 500 fell 27.10 points, or 0.5%, to 5,436.44, although most stocks within it rose.
• The Dow Jones Industrial Average rose 203.40 points, or 0.5%, to 40,743.33.
• The Nasdaq composite fell 222.78 points, or 1.3%, to 17,147.42.

PayPal rose 8.6% to help lead the market after topping analysts' expectations for profit during the spring, the AP reports. It also raised its forecast for profit over the full year.

JetBlue Airways climbed 12.3% after reporting a profit for the spring, when analysts were expecting to see a loss. The airline also outlined ways it hopes to improve on-time performance and attract customers. But a 0.9% slide for Microsoft nevertheless helped drag the S&P 500 lower as investors waited for its latest profit report, which arrived after trading finishes for the day. Every other stock in the group that's come to be known as the "Magnificent Seven" also fell, including a 7% tumble for Nvidia.

Also helping to weigh on Wall Street Tuesday was Merck, which fell 9.8% despite reporting stronger results for the last quarter than expected. It gave a forecast for profit this year that fell short of analysts' expectations, partly because of costs related to its buyout of Eyebiotech. Procter & Gamble slid 4.8% after beating forecasts for profit in the latest quarter but falling short on revenue. It was hurt by the effects of shifting foreign exchange rates on its international sales, and it expects that to remain a challenge in its upcoming fiscal year.

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Helpfully for the market, other stocks have been rising up to cushion some of Big Tech's recent softness, including smaller stocks and companies whose profits are closely tied to the strength of the economy. They rallied on hopes that inflation is slowing enough to get the Federal Reserve to soon begin cutting interest rates. No one expects the Fed to cut interest rates this week, when it announces its decision on Wednesday. But the widespread expectation is that it will do so at its next meeting in September.

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