STORY: Wall Street ended in negative territory on Tuesday, after a seesaw session, as growing fears of a recession kept buyers out of the stock market ahead of key inflation data due out Wednesday.
The Dow fell six tenths of a percent, while the S&P 500 and Nasdaq each dropped nearly a percent.
Dan Wantrobski, associate director for research at Janney Montgomery Scott, said investors' recession concerns were warranted but said he believes a U.S. recession would be "benign in scope."
"We actually believe labor markets are going to remain tight and it's actually going to be more of a consumer-led recession based on all the headline price inflation we're currently seeing and that the Fed is trying to fight. In that sense of a recession as the stocks are trying to bottom and base here, if we look back at the history in the data, buying stocks during recession, turns out, in terms of the long term perspective, to be one of the best buying opportunities for the next several years."
The second-quarter reporting season kicks off in earnest later in the week with the big banks reporting.
But PepsiCo got the ball rolling Tuesday, posting results that beat estimates and announced it could increase prices amid resilient demand.
Shares of Boeing jumped 7.4% after the plane maker's June aircraft deliveries hit the highest monthly level since March 2019.
Shares of apparel retailer Gap fell 5.0% following its announcement that its CEO would step down, and that margins would stay under pressure.
And shares of software provider Service Now plunged 12.7% after its CEO warned of macro headwinds and currency pressures. That pulled down other software companies, including Microsoft, Salesforce.com, and Paycom Software.