US stocks slipped on Tuesday as investors weighed early reports on a marquee earnings day, with Big Tech results from Alphabet and Tesla in focus after hours.
The benchmark S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) dropped about 0.2% and 0.1%, respectively, with the tech-heavy Nasdaq Composite (^IXIC) finishing the day just below the flatline.
Markets have been digesting a rotation away from the megacaps that have fueled this year's rally. Small caps have benefitted as a result with the Russell 2000 (^RUT) up 3% over the past two days.
In the kickoff to "Magnificent 7" earnings, Alphabet (GOOGL, GOOG) and Tesla (TSLA) both reported mixed quarterly results after the bell.
Google parent Alphabet delivered a beat on both the top and bottom lines. The company praised its search and cloud businesses, announced a $0.20 cash divided, and reported better-than-expected advertising revenue. But network revenue, services revenue, along with subscriptions, platforms and devices revenue disappointed. Shares gained about 1% as investors digested the results.