U.S. Market Sees Mixed Reactions Amid Corporate Earnings and Inflation Insights

U.S. markets showed mixed signs on Tuesday as investors reviewed corporate earnings reports and awaited retail sales data. Bank of America's profit fell in Q2 due to shrinking interest income, while Tesla saw gains with Musk's pro-Trump super PAC plans. Retail sales data expected shortly may provide more insight into inflation trends.

The U.S. stock market exhibited mixed reactions on Tuesday as traders analyzed corporate earnings and awaited retail sales figures to gauge inflation trends. Bank of America's second-quarter earnings report showed a decline in profit due to decreased interest income and an increase in credit loss provisions. Despite this, the bank's shares climbed 1% in premarket trading.

Morgan Stanley rose 0.9% ahead of its results, while a record-high closing for the blue-chip Dow on Monday was driven by expectations of a Federal Reserve rate cut in September and a potential second term for Donald Trump. Futures tracking the small-cap Russell 2000 index were up 1% as investors shifted away from tech stocks.

Retail sales data, due at 8:30 a.m. ET, is anticipated to show a 0.3% decline for June, following a slight rise in May. Investors are watching closely for clues on inflation trends, although Federal Reserve Chairman Jerome Powell's recent comments have bolstered confidence in achieving the 2% inflation target.

(With inputs from agencies.)