STORY: U.S. stocks closed lower on Tuesday, with the Dow dropping about a quarter of a percent, and the S&P 500 and Nasdaq each shedding more than a third of a percent.
The S&P snapped six straight sessions of gains. The Dow fell after a three-session win streak and the Nasdaq slipped after climbing for the previous two sessions.
Robert Conzo, CEO and managing director of The Wealth Alliance, said that while stocks are taking a breather, they should continue to climb.
"Earnings growth projections for 2025 was 13%. It just got cut in half to seven. So given all that, why would anyone have any good feeling about equities? And the reason why they have feelings about it is because the hard data is incredibly strong, with CPI being at 2.3 [percent] and PCE being at 2.6 [percent]. Wage growth, very strong at 3.8 [percent]. As well as jobs at 177 [thousand], the last print. Those are strong numbers and the consumer spending at record dollars. That's strong, that's good for earnings."
Stocks on the move Tuesday included Home Depot, which edged lower, reversing early gains, after the home improvement retailer reported first-quarter sales that beat Wall Street estimates.
Shares of Tesla rose slightly after CEO Elon Musk said he was still committed to being CEO in five years.
But every other Magnificent 7 stock fell, including Apple, Amazon and Nvidia, with the AI chip leader set to report quarterly earnings next week.
