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Markets were mixed in Monday trading today, closing at new all-timer highs on the S&P 500 and the Nasdaq, while dipping into the red on the blue-chip Dow index and the small-cap Russell 2000. We were muted overall by the close, and certainly off intraday highs across the board.

The Dow slid -19 points, a mere -0.04% for the session, while the S&P 500 grew +8 points — just +0.14%, but closing above 6300 for the first time ever. The Nasdaq gained +78 points, +0.38%, while the Russell, which had been leading the field over the past week or so, came in -9 points, -0.40%. Bond yields have cooled from last week, as well: +4.38% on the 10-year, +3.86% on the 2-year and back below +5% on the 30-year bond.

NXPI Beats in Q2, Stock Sells a Bit
 

Analog chip maker NXP Semiconductor (NXPI - Free Report) recorded Q2 beats on both top and bottom lines after today’s close. Earnings of $2.72 per share outpaced the Zacks consensus by 6 cents on $2.93 billion in revenues, beating the $2.90 billion expected. While its Industrial and Mobile segments surpassed expectations, its crucial Auto business came in-line. Both top and bottom lines are down from year-ago figures; shares are down -2.4% in late trading. 

U.S. LEI Giving Recession Signals… Again
 

Earlier this morning, after the opening bell, U.S. Leading Economic Indicators (LEI) slipped -0.3% in June, down from the -0.2% analysts were expecting and -30 basis points (bps) lower than the previous month’s upwardly revised 0.0%. June’s headline came in at 98.8, the first sub-99 print in more than a year.

This LEI report also triggered a recession signal for the third-straight month, based on an overall weaker growth rate only slightly supported by gains in the S&P 500 stock market index. That said, we’d also seen recession signals in LEI data for all of 2022 and part of 2023 — only to see no actual recession transpire. 

However, with a 6-month downturn of -2.8 from December 2024 to June of this year — more than double to the downside the previous 6-month total -1.3 — it’s tough to see any silver linings in this report. Even the S&P 500 gains were lower in the June report than they were in May. 

What to Expect from the Stock Market Tomorrow
 

We’ll spend Tuesday without any major economic reports scheduled. Two potentially important addresses from key members of the Federal Reserve — Vice Chair Michelle Bowman and Fed Chair Jerome Powell himself — are on the docket ahead of tomorrow’s open. We don’t expect Powell to entertain any notions toward his tenure or potential replacement, but he may give some signals about whether the Fed is getting ready to cut interest rates.

Coca-Cola (KO - Free Report) will report Q2 earnings Tuesday morning, and the Zacks Rank #2 (Buy)-rated American staple is expected to come in -1.2% year over year on earnings, +1.86% on sales. Coca-Cola hasn’t missed on earnings for eight years, with a +5% average earnings surprise over the trailing four quarters.

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