The broader market posted modest losses Tuesday as Wall Street failed to build on the previous session's gains. The Dow Jones Industrial Average fell nearly 175 points, while the S&P 500 lost about 0.3% and the Nasdaq Composite settled slightly above a flatline.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): -0.28% or -12.22 points to 4,387.55
Dow Jones Industrial Average (NYSE: DIA): -0.51% or -174.86 points to 34,288.83
Nasdaq Composite Index (NASDAQ: QQQ): +0.06% or +8.28 points to 13,505.87
The banking sector came back into focus on Tuesday after S&P Global cut credit ratings and revised its outlook for multiple U.S. banks late Monday. Shares of major U.S. banks like JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) all fell lower Tuesday.
The credit agency slashed ratings on Associated Banc-Corp (NYSE: ASB) and Valley National Bancorp (NASDAQ: VLY) on funding risks, and downgraded UMB Financial (NASDAQ: UMBF) and Comerica Bank (NYSE: CMA) due to deposit outflows and higher interest rates. S&P Global also cut KeyCorp's (NYSE: KEY) rating, citing constrained profitability.
On the earnings front, Dick's Sporting Goods (NYSE: DKS) shares fell by 24% after it issued cautious full-year outlook. The company lowered its profit for the year in part due to expectations that shrink will worsen before it improves.
"Organized retail crime and theft in general is an increasingly serious issue impacting many retailers. Based on the results from our most recent physical inventory cycle, the impact of theft on our shrink was meaningful to both our Q2 results and our go forward expectations for the balance of the year," CEO Lauren Hobart said on an earnings call. "Beyond shrink, we also took decisive action on excess product, particularly in the outdoor category, to allow us to bring in new receipts and ensure our inventory remains vibrant and well positioned."
Macy's (NYSE: M) shares also fell 14% after the retailer warned that consumers are expected to remain cautious towards discretionary spending in the back half of the year. The company expects comparable owned-plus-licensed sales to fall 6% to 7.5% compared with the prior year, adjusted earnings per share in a range of $2.70 to $3.20, and sales between $22.8 billion and $23.2 billion for the fiscal year.
Lowe's (NYSE: LOW) reported mixed second-quarter earnings but reiterated its full-year forecast. The home improvement retailer expects total sales between $87 billion and $89 billion, comparable sales to fall by 2% to 4%, and adjusted earnings per share in a range of $13.20 and $13.60.
Zoom (NASDAQ: ZM) shares slipped despite topping second-quarter earnings and revenue estimates as the video communications company's current-quarter guidance came below expectations. Still, Zoom raised its full-year guidance, forecasting adjusted earnings per share between $4.63 to $4.67 and revenue between $4.485 billion to $4.495 billion.
On the economic front, U.S. home sales fell at a faster-than-expected rate in July as prices increased, according to the National Association of Realtors report Tuesday. Existing home sales fell 2.2% from June, with sales totaling 4.07 million -- down 16.6% year-over-year. The median sales price rose by 1.9% to $406,700.
In single-stock news, Charles Schwab (NYSE: SCHW) will reduce its headcount and close or downsize certain corporate offices, according to a U.S. Securities and Exchange Commission (SEC) filing on Monday. The financial services company aims to realize at least $500 million of incremental annual run-rate cost savings, according to the filing. Schwab also expects to incur exit costs between $400 million to $500 million.
Looking ahead, all eyes will be on Nvidia's (NASDAQ: NVDA) earnings report due out Wednesday.