NASDAQ in Correction Mode, Down Five Straight Sessions; Oil Rises on Resumption of Military Strikes at Saudis; Earnings Mixed, Futures Lower

The NASDAQ fell for the fifth straight session Tuesday and the eighth in the last nine.

If this isn't a correction, then there needs to be a new definition of what it is. Money is coming out of semi and Mag7 stocks and into basic materials, second tier cloud storage and cash. Some consumer-facing stocks are thriving, but others are feeling the effects of inflation and stretched family budgets.

The Mideast situation took a turn for the worse overnight as Houthis continued to target Saudi oil infrastructure. There's a good chance that negotiations will fail again and fighting between Iran and the U.S. will re-accelerate. Crude oil is higher overnight, WTI heading toward $85/barrel rapidly. Stock futures headed lower, especially the Dow, down 300 points at 9:00 am ET, with the NASDAQ and S&P flat.

After Tuesday's closing bell, companies rported second quarter results:
Visa (V) - Earnings beat, layoffs announced, shares down 2% pre-market
Teradyne (TER) - Beat, cites AI demand, shares up 15%
Avis Budget Group (CAR) - Huge miss, stock down 13%
Ford (F) - Solid quarter, shares flying 5% higher
Cheesecake Factory (CAKE) - Top and bottom beat, stock up 2.5%
Seagate (STX) - Record margins on AI storage boom, up 5%

Wednesday, before the open, these companies reported second quarter earnings:
Boston Scientific (BSX) - Cuts forecast, announces restructuring, stock down 5%
Generac (GNRC) - Beats on data center demand, shares 8-9% higher pre-market
Cognizant (CTSH) - Mixed results, poor forecast sends shares down 2%
ADP (ADP) - Solid quarter, forward guidance, stock is flat
Humana (HUM) - Earnings beat, shares down 2%
Proctor & Gamble - Soft outlook sends stock down 3%
SoFi (SOFI) - Record results, firmer guidance, stock down 5%

The big guns come out after the close when Meta Platforms (META) and Microsoft (MSFT) report.

It's a real mixed bag of earnings reports, giving investors plenty on which to trade, though recent trends suggest more selling ahead.

There's a FOMC policy announcement at 2:00 pm ET, though prospects for raising or lowering rates are close to nil. There's simply far too much data and geo-political theater for the Fed to do anything but sit on their hands at this juncture, though there's rumors for a 25 basis point hike, which would send stocks into a tailspin, so it is not likely.

The number to watch for on the NASDAQ is 24.384.51, which would make the correction "official."

At the Close, Tuesday, July 28, 2026:
Dow: 52,747.32, +537.24 (+1.03%)
NASDAQ: 24,876.91, -55.17 (-0.22%)
S&P 500: 7,428.78, +15.60 (+0.21%)
NYSE Composite: 24,229.67, +130.85 (+0.54%)