Stocks drop after five-day streak of gains

NEW YORK — Stocks ended a five-day winning streak Tuesday as investors cautiously assessed the first big round of corporate earnings reports.

Technology companies fared the worst, weighed down by a 1.3 percent drop by Microsoft Corp. and a 1.9 percent slide from Intel Corp.

Johnson & Johnson led health care stocks lower with a drop of 1.6 percent. The health care and pharmaceutical company’s full-year profit forecast remained mostly below analysts’ projections.

Financial stocks gave up early gains and turned mostly lower, although Goldman Sachs Group Inc. and JPMorgan Chase & Co. rose. Energy companies also fell broadly.

Major indexes were mixed for much of the morning and turned lower at midday after President Donald Trump said: “We have a long way to go on tariffs with China.”

The S&P 500 fell 10.26 points, or 0.3 percent, to 3,004.04. The Dow Jones Industrial Average fell 23.53 points, or 0.1 percent to 27,335.63. The Nasdaq composite fell 35.39 points, or 0.4 percent. to 8,222.80.

The Russell 2000 index rose 0.17 point to 1,562.

A surprisingly good retail sales report for June had little impact on consumer product makers, though it did help push bond prices lower. The yield on the 10-year Treasury rose to 2.12 percent from 2.09 percent late Monday.

Industrial companies fared the best. JB Hunt Transport Services Inc. jumped 5.6 percent after the company beat Wall Street’s second-quarter profit forecasts. The trucking and logistics company also told investors it expects volume will pick up in the second half of the year.

The latest round of corporate financial reports ramps up this week, and investors have low expectations. Wall Street is forecasting a 2.6 percent drop in profit for S&P 500 companies. It is set to be the first back-to-back quarterly decline in three years.

Investors are looking for reasons to remain cautious as companies release results and give forecasts for the rest of the year, said Jack Ablin, chief investment officer for Cresset Wealth management.

It’s still early to tally results, but so far, the share of companies beating profit forecasts has been high while many are reporting revenue shortfalls.

“That certainly doesn’t bode well for growth in the second half,” he said.

Blue Apron Inc. surged 35.5 percent after the meal-kit company said it will start offering recipes with Beyond Meat’s plant-based food. The company will start offering the options in August.

The influx of earnings reports are coming in ahead of a highly anticipated Federal Reserve meeting at the end of the month. Wall Street expects the central bank to raise interest rates to help secure U.S. economic growth threatened by a trade war with China.