On Tuesday, macroeconomic factors played a less prominent role in driving US equities as the market’s attention shifted to corporate earnings reports. Sector performance was largely influenced by individual company results, leading to greater stock dispersion across the board.

For instance, the Industrials sector underperformed, weighed down by negative earnings reactions from companies like GE and DHR. Similarly, the Steel sector saw pressure after Nucor (NUE) missed expectations, and homebuilders suffered as PulteGroup (PHM) dragged the entire sector lower.

In contrast, Technology was mixed, with large-cap software companies seeing a boost, especially after SAP reported strong results. Automotive stocks also performed well, bolstered by General Motors (GM), though auto suppliers, such as Genuine Parts Company (GPC), lagged behind.

Broad themes also contributed to market movement, including renewed stimulus hopes from China, which lifted China Internet stocks by 2.5%. The Republican vs. Democrat Winners index continued to rise by 90 basis points as the odds of a potential Trump re-election increased. Meanwhile, the Energy sector gained strength, following a rise in crude oil prices.

Looking at UBS’s high-touch flows, there was a noticeable trend toward selling. Long-only funds showed a 46% buy versus 54% sell skew, while hedge funds demonstrated a similar sell bias (44% buy, 35% sell, 21% short-sell). Earnings season continued to dominate sector flows, with significant selling activity in Telecom and Industrials, while Tech and Financials saw stronger buying interest.

As earnings season progresses, investors are focusing more on company-specific results rather than broader macroeconomic trends. This shift in attention is creating opportunities for selective stock picking, especially as single-stock dispersion picks up across sectors.