US stocks mixed ahead of Alphabet earnings; Nasdaq declines 0.4%

US equity benchmarks were trading on a mixed note on Wednesday, July 22, as investors waited for quarterly earnings report from Alphabet, the parent of search giant Google. Investors will also keep an eye on earnings reports by Tesla, Texas Instruments Incorporated, IBM, and Moody's Corporation among others.

As of 7:45 pm, the Dow Jones Industrial Average advanced 0.32%, S&P 500 index was unchanged at 7,508 and tech heavy Nasdaq declined 0.3% to 25,752.

Sentiment among investors turned cautious tracking a surge in crude prices as tensions in Middle East flared up after US President Donald Trump warned on Wednesday that the US will destroy one bridge or power plant each time Iran shoots at a ship in the Strait of Hormuz.

Brent crude jumped above $95 per barrel, its highest level in six weeks, stoking fears that high inflation could into margins of companies going ahead.

Tariff threat by Trump also added to cautious sentiment among investors after he said that all generic drugs brought into the US will carry a 0% tariff for two years from August 1, after which the rate will rise to 100% for one year and 200% thereafter.

The administration slapped a 50% tariff on some Canadian goods earlier this week.

AT&T shares rose over 4% after reporting a stronger profit for the latest quarter than analysts expected, though its revenue fell short. CEO John Stankey said the telecom company is accelerating plans to send roughly $10 billion to its shareholders this year through share buybacks.

Tobacco giant Philip Morris International gained nearly 5% after the seller of cigarettes and smokeless products reported stronger profit and revenue than expected.

Meanwhile, higher energy costs are complicating the work of central bankers. The European Central Bank is expected to announce its verdict on Thursday, and the US Federal Reserve’s decision is due next week.