US stocks dip on mixed earnings, growth worries

NEW YORK: Wall Street stocks edged lower early Tuesday as markets weighed mixed corporate earnings against global growth worries in light of the latest Covid-19 infections.

Among those reporting results, sports apparel company Under Armour jumped after topping expectations, while Clorox sank on lower profits compared with the year-ago period when Covid-19 worries boosted sales.

Strong earnings in the second quarter have helped keep stocks near records, even as the United States and other major economies contend with the Delta variant of Covid-19.

Major indices fell Monday as the yield on the 10-year US Treasury retreated, sharpening worries about the medium-term growth outlook.

About 20 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 34,772.34.

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The broad-based S&P 500 slipped 0.1 percent to 4,382.73, while the tech-rich Nasdaq Composite Index dipped 0.1 percent to 14,673.03.

Among individual companies, Activision Blizzard dropped 3.2 percent as the video game maker unveiled a management shakeup following employee protests and a California state lawsuit alleging toxic workplace conditions and discrimination against women.

The head of the Blizzard Entertainment unit, J. Allen Brack, is leaving "to pursue new opportunities," the company said in a statement, and will be replaced by company veterans Jen Oneal and Mike Ybarra.

PepsiCo gained 0.4 percent after announcing that it will sell a majority share in its drink brands Tropicana and Naked to French investment fund PAI Partners for $3.3 billion.