US stock market: The S&P 500 (.SPX) and Nasdaq (.IXIC) closed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. U.S. stocks ended July on a strong footing, as investors welcomed better-than-expected earnings. Support also came from hopes of a soft landing for the economy which has stayed resilient as inflation has cooled with rising interest rates. The benchmark S&P 500 (.SPX) hit a 16-month high on Monday, and is less than 5 per cent away from breaching its record high closing level notched on Jan. 3, 2022.

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"It's been a really good run in June, July. And everybody sort of knows that August was historically a pretty weak seasonal month," said Scott Ladner, chief investment officer of Horizon Investments. "So I think people are just taking the opportunity to lighten up a little bit." Keeping a lid on the Dow's losses (.DJI), Caterpillar (CAT.N) added 8.9 per cent as the global economic bellwether reported a rise in second-quarter profit, though it warned of a sequential fall in current-quarter sales and margins.

Uber (UBER.N) shed 5.7 per cent after the ride-hailing company missed second-quarter revenue expectations. Among pharmaceutical heavyweights, Pfizer (PFE.N) edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products. U.S. second-quarter earnings are now expected to fall 5.9 per cent from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9 per cent decline estimated a week earlier.

U.S. manufacturing appeared to have stabilized at weaker levels in July as new orders gradually improved, while a survey showed factory employment dropped to a three-year low, suggesting that layoffs were accelerating. Shares of megacap growth companies such as Tesla (TSLA.O) and Amazon.com (AMZN.O), whose valuations drop when borrowing costs rise, fell as the benchmark 10-year U.S. Treasury note yield climbed over 4 per cent. Arista Networks (ANET.N) rose 19.7 per cent as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.

The Dow Jones Industrial Average (.DJI) rose 71.15 points, or 0.2 per cent, to 35,630.68. The S&P 500 (.SPX) lost 12.23 points, or 0.27 per cent, at 4,576.73 and the Nasdaq Composite (.IXIC) dropped 62.11 points, or 0.43 per cent, to 14,283.91. Volume on U.S. exchanges was 10.45 billion shares, compared with the 10.72 billion average for the full session over the last 20 trading days. Shares of Norwegian Cruise Line (NCLH.N) tumbled 12.1 per cent after it forecast third-quarter profit below estimates, citing higher costs.

JetBlue Airways (JBLU.O) stocks dropped 8.3 per cent after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines (AAL.O). Declining issues outnumbered advancers on the NYSE by a 2.16-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored decliners. The S&P 500 posted 23 new 52-week highs and three new lows; the Nasdaq Composite recorded 84 new highs and 70 new lows.