Nasdaq, S&P rise as spotlight turns on tech results; UPS plunges
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Spotify jumps after results
NXP Semiconductors weighs on chip stocks
Coca-Cola rises after lifting annual forecasts
Tesla, Alphabet to kick off Magnificent Seven earnings AMC
Indexes: Dow down 0.02%, S&P up 0.19%, Nasdaq up 0.29%
Updated at 9:50 a.m. ET/1350 GMT
By Ankika Biswas and Lisa Pauline Mattackal
July 23 (Reuters) - U.S. stocks were flat to higher on Tuesday as investors awaited Alphabet and Tesla earnings later in the day to gauge if the recent market rally has momentum to spare, while United Parcel Service and NXP Semiconductors plummeted after poor results.
United Parcel Service UPS.N, seen as a bellwether for the global economy, slumped12.4% after missing earnings estimates on subduedpackage delivery demand and higher labor-contract costs.
NXPSemiconductors NXPI.O fell7.2% after forecasting third-quarter revenue below estimates, dragging the Philadelphia SE Semiconductor index .SOX down0.8%.
The two stocks were the biggest losers on the S&P 500 .SPX, while UPS pulled the Dow Jones Transport Average index .DJT lower 1.5%.
Amid a flurry of corporate earnings, focus now shifts to resultsfrom technology giants, which willbe key in determiningwhether 2024's record rally can be sustained, as investors assess if U.S. stocks are overvalued or have room to rise further.
"Second-quarter earnings remain at the center stage... Equity expectation misses are more dangerous now than in the first quarter, as shown by the harshness of the price action," said Bob Savage, head of markets strategy and insights at BNY Mellon.
Alphabet GOOGL.O and Tesla TSLA.O, two of the so-called Magnificent Seven companies, are set to report quarterly results after markets close.
Alphabet shares rose 0.5%, while Tesla fell 0.5%. Other megacap stocks such as Microsoft MSFT.O and Amazon.com AMZN.O rose 0.6% and 2.5%, respectively.
The results will test whether a rotation away from megacaptech stocks in favor of underperforming sectors can continue. The small-cap Russell 2000 .RUT slipped0.1%.
"Investors always reward growth, and if those smaller companies who've been overlooked for the first six months can show outperformance against their peers on a percentage basis, they're going to get the love," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Among other earnings, Spotify Technology SPOT.N leapt13.6% after its second-quarterresults were broadly in line with estimates, while General Motors GM.N lost5.4%.
Coca-Cola KO.Nrose 1.0% after increasing itsannual sales and profit forecasts, while Comcast CMCSA.O lost3.8% after it missedrevenue estimates.
Of the 74 S&P 500 companies that have reported quarterly results during this earnings season, 81.1% beat expectations, according to LSEG data on Monday.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was down 7.58 points, or 0.02%, at 40,407.86, the S&P 500 .SPX was up 10.65 points, or 0.19%, at 5,575.06, and the Nasdaq Composite .IXIC was up 51.70 points, or 0.29%, at 18,059.27.
Economic data due to release this week includes the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, which will be crucial in assessing the monetary policy outlook against a backdrop of the recent inflation downtrend and signs of easing in the labor market.
Bets of a 25-basis-point interest-rate cut by September have shot up to nearly 92%, from nearly 60% last month, according to CME's FedWatch Tool, with two rate cuts expected by the year end.
Declining issues outnumbered advancers for a 1.46-to-1 ratio on the NYSE, andfor a 1.23-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and one new low, while the Nasdaq recorded 46 new highs and 30 new lows.
Magnificent Seven performance https://tmsnrt.rs/46j9n4G
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Shounak Dasgupta and Pooja Desai
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