Stocks fall as tech shares are under pressure once again, bank earnings kick off - CNBC

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Stocks were flat on Tuesday as shares of major tech companies added to their late-day reversal from the previous session while Wall Street grappled with the major banks reporting earnings.

The Dow Jones Industrial Average dipped 18 points, or 0.1%. The S&P 500 slid 0.3% and the Nasdaq Composite lost 0.1%.

Facebook, Amazon and Netflix slid at least 0.4% each. Alphabet and Microsoft fell 0.5% and 0.6%, respectively, on Tuesday. Those losses added to a broad decline for Big Tech that started on Monday and evaporated a massive rally for the broader market.

"That turnaround yesterday, the pirouette where it went back down, you don't just snap out of that in one day," CNBC's Jim Cramer told "Squawk on the Street." "There are too many people who bought at the top who are trying to figure out, 'Lord get me back to even.'  Let this play out. We don't even know which group is going to come to the fore here. Will it be the companies that do better because people think a vaccine is upon us? I can't buy into that theory but that was the theory yesterday afternoon."

The Dow up a 500-point gain to end the day up 10 points on Monday. Meanwhile, the Nasdaq Composite rose nearly 2% to a record before ending Monday's session down more than 2%.

"Given the nonstop rally of late in the Nasdaq and earnings season on the horizon, Monday's reversal should at least serve as a reality check that the market isn't a one-way street," analysts at Bespoke Investment Group said in a note. Bespoke also pointed out Monday marked the third time since 1985 that the Nasdaq hit an intraday record before ending a session down more than 1%.

Bank earnings kick off

JPMorgan Chase rose more than 1% after the banking giant posted earnings and revenue that beat analyst expectations. The bank's strong results were driven in part by a 79% surge in trading revenues amid the market's volatile swings in the second quarter. 

Strong trading revenues also helped Citigroup offset a slowdown in the company's consumer banking business. The bank reported second-quarter results that topped analyst expectations.

Wells Fargo slid more than 5% after reporting a $2.4 billion loss for the quarter, its first quarterly loss since the financial crisis. The bank also cut its dividend to 10 cents from 51 cents a share.

While corporate profits are expected to fall by 44% in the second quarter, the financial sector is expected to see a more than 52% decline in profits, according to Refinitiv.

"What's so influential about the banks reporting early in the earnings season in times like these is we're really counting on banks' management team's view on what's going on," Susan Schmidt, head of U.S. equities at Aviva Investors, told CNBC. "Banks are the foundation of our U.S. economy. They are there to provide loans to small businesses and to manage the retail consumers' deposits."

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Stocks fall as tech shares are under pressure once again, bank earnings kick off - CNBC
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