UPS Stock Falls; AI Demand Boosts Corning Earnings

Major U.S. equities indexes lost ground Tuesday as investors pored over the latest earnings reports, monitored trade negotiations with China, and looked ahead to Wednesday’s interest-rate announcement from the Federal Reserve.

The S&P 500 slipped 0.3%, ending the benchmark index’s streak of six consecutive closing highs. The Nasdaq also retreated from record levels, declining 0.4%, while the Dow dropped 0.5%. Read Investopedia’s full coverage of today’s trading here.

Shares of heating, ventilation, and air conditioning specialist Carrier Global (CARR) posted the heaviest drop of any S&P 500 stock Tuesday, sinking nearly 11%. Despite reporting stronger-than-expected second-quarter profit and meeting revenue forecasts, Carrier trimmed its full-year outlook for organic growth in residential markets. The company also discussed headwinds in the light commercial segment and challenges in international markets.

Package delivery giant United Parcel Service (UPS) reported mixed quarterly results, with revenue edging ahead of estimates but earnings per share missing the mark. A decline in average daily domestic package volume contributed to a 3% year-over-year decline in revenue. The shipping company opted against providing full-year guidance for revenue and operating profit, citing uncertainties related to shifting trade policy and the macroeconomic outlook. UPS shares tumbled more than 10%, but fared a few ticks better than Carrier’s.

Brown & Brown (BRO) shares dropped more than 10% after the insurance brokerage and risk management firm released second-quarter earnings. Although the company posted stronger-than-expected top- and bottom-line results, net income was down 10% from a year ago. During Brown & Brown’s earnings call, analysts raised questions about potential margin pressure and the possibility that softness in the insurance markets could stifle revenue growth.

Shares of Corning (GLW) surged nearly 12%, securing the S&P 500’s strongest performance on Tuesday. The supplier of specialized glass for smartphone and television screens as well as fiber optic cables topped sales and profit estimates with its second-quarter results. The glassmaker has benefitted from increased demand for its cabling solutions related to the rapid buildout of artificial intelligence data centers. JPMorgan analysts said the possible launch of a foldable iPhone by Apple (AAPL) could be another positive for Corning given the increased glass surface area and complexity.

Incyte (INCY) shares rose more than 10% in the wake of the biopharmaceutical company’s quarterly earnings release. Although product revenue for the second quarter fell shy of consensus expectations, EPS came in better than expected. Incyte highlighted solid year-over-year sales growth for skin treatment Opzelura and increased its full-year sales outlook for its top-selling drug Jakafi, which is used as a therapy for several blood conditions.

Cadence Design Systems (CDNS) reported quarterly sales and profits that surpassed analysts’ expectations, and shares of the electronic design automation firm advanced 9.7%. Bookings were also better than anticipated, and Cadence lifted it full-year outlook, pointing to the strength and breadth of its products across various areas within the AI space. The company also said it would pay a penalty of more than $140 million related to the unlawful export of semiconductor design tools to China.