The S&P 500 and Nasdaq closed lower on Tuesday, weighed down by weak chip and megacap shares ahead of earnings from heavyweight tech companies this week, but the Dow managed modest gains.

Market Snapshot

The Dow Jones Industrial Average rose 203.40 points, or 0.5%, to 40,743.33, the S&P 500 lost 27.10 points, or 0.5%, to 5,436.44 and the Nasdaq Composite lost 222.78 points, or 1.28%, to 17,147.42.

Market Movers

Microsoft — Shares dropped 3.5% after the tech giant reported disappointing results out of its cloud business. That overshadowed beats on both lines for the fiscal fourth quarter.

Advanced Micro Devices — The chipmaker jumped 8% as second-quarter results surpassed estimates. AMD posted adjusted earnings of 69 cents per share and revenue of $5.84 billion, while analysts polled by LSEG called for 68 cents in earnings per share and $5.72 billion in revenue. Shares of Nvidia, whose processors are the gold standard in AI computing, rose 5%. Broadcom, which also sells AI-related chips added 3%. Intel rose 1.4% and Qualcomm added 2%.

Arista Networks — The computer networking company added nearly 3% after beating Wall Street expectations on both lines in the second quarter. Arista posted adjusted earnings of $2.10 per share on $1.69 billion in revenue, while analysts polled by LSEG predicted $1.95 in earnings per share and $1.65 billion in revenue.

Pinterest — Shares of the image-sharing service dropped 11%. Pinterest issued disappointing guidance for third-quarter revenue, giving a range of $885 million to $900 million and missing analysts ’ expectations. In the second quarter, adjusted earnings came in at 29 cents per share, while revenue was $854 million, surpassing the Street ’ s estimates, per LSEG.

Starbucks — Shares added 3% even though Starbucks reported in-line earnings and quarterly revenue that fell short of analysts ’ expectations due to weaker demand affecting both its U.S. and international cafes. In its fiscal third quarter, Starbucks posted adjusted earnings of 93 cents per share, meeting expectations of analysts polled by LSEG. Revenue for the period came out at $9.11 billion, below the $9.24 billion expected from analysts.

Skyworks Solutions — The semiconductor stock dropped 3.6%. In the fiscal third quarter, Skyworks ’ adjusted earnings came in at $1.21 per share, in line with analysts ’ expectations, per LSEG. Revenue for the period was $906 million, higher than the consensus forecast of $900 million.

Caesars Entertainment — Shares of the gaming and hospitality company rose 5% despite a second-quarter report that showed revenue declining year over year. Caesars reported $2.8 billion in revenue for the second quarter, compared to $2.9 billion a year ago.

Informatica — The business cloud stock slid 0.6% on the back of underwhelming revenue for the second quarter. Informatica posted $401 million, under the $403 million penciled in by analysts polled by LSEG. Meanwhile, adjusted earnings per share came in 1 cent above the Street ’ s forecast at 23 cents.

First Solar — The solar stock advanced 2.7% as First Solar ’ s second-quarter earnings topped expectations. The company earned $3.25 per share on $1.01 billion in revenue, while analysts surveyed by LSEG anticipated just $2.69 a share on revenue of $942 million.

Western Union — The   cross-border money transfers and payments stock dipped nearly 1% after posting mixed second-quarter results. Adjusted earnings of 44 cents per share came in below the earnings of 45 cents per share anticipated by analysts polled by FactSet. Revenue of $1.07 billion topped the $1.06 billion consensus estimate.

Live Nation Entertainment — The Ticketmaster parent dropped 3%. Live Nation posted second-quarter earnings of $1.03 per share, less than the $1.07 per share consensus estimate from analysts surveyed by LSEG. Revenue came in line with expectations at $6.02 billion.

Mondelez International — The maker of Sour Patch Kids slipped 0.1%. Second-quarter revenue came in at $8.34 billion, while analysts polled by LSEG sought $8.45 billion. Mondelez also raised its dividend by 11%.

Market News

Tesla recalls 1.85 million US vehicles over unlatched hood issue

Tesla is recalling 1.85 million vehicles in the United States due to risk of software failure to detect an unlatched hood, the automaker said.

An unlatched hood could fully open and obstruct the driver's view, raising the risk of a crash, the National Highway Traffic Safety Administration ( NHTSA ) said.

Tesla in mid-June began rolling out an over-the-air software update to fix the issue, NHTSA said. The updated software detects an open hood and alerts drivers.

Stellantis says no intention of selling Maserati, after CEO issues warning

Stellantis has no intention of selling its luxury vehicle business Maserati or aggregating the unit with other Italian luxury groups, the Jeep maker said on Tuesday.

"Stellantis restates unwavering commitment to Maserati's bright future as the unique luxury brand of the 14 Stellantis brands," the carmaker said in a statement, while also reaffirming commitment to its entire portfolio.

Carlos Tavares, the Netherlands-based automaker's chief, warned last week that if the company's loss-making brands "don't make money, we'll shut them down".