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Spotify ( SPOT ) jumps after results

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NXP Semiconductors ( NXPI ) weighs on chip stocks

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Coca-Cola rises after lifting annual forecasts

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Tesla, Alphabet to kick off Magnificent Seven earnings AMC

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Indexes: Dow down 0.02%, S&P up 0.19%, Nasdaq up 0.29%

(Updated at 9:50 a.m. ET/1350 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

July 23 (Reuters) -

U.S. stocks were flat to higher on Tuesday as investors

awaited Alphabet and Tesla earnings later in the day to gauge if

the recent market rally has momentum to spare, while United

Parcel Service ( UPS ) and NXP Semiconductors ( NXPI ) plummeted after poor

results.

United Parcel Service ( UPS ), seen as a bellwether for

the global economy, slumped 12.4% after missing earnings

estimates on subdued package delivery demand and higher

labor-contract costs.

NXP Semiconductors ( NXPI ) fell 7.2% after forecasting

third-quarter revenue below estimates, dragging the Philadelphia

SE Semiconductor index down 0.8%.

The two stocks were the biggest losers on the S&P 500

, while UPS pulled the Dow Jones Transport Average index

lower 1.5%.

Amid a flurry of corporate earnings, focus now shifts to

results from technology giants, which will be key in determining

whether 2024's record rally can be sustained, as investors

assess if U.S. stocks are overvalued or have room to rise

further.

"Second-quarter earnings remain at the center stage...

Equity expectation misses are more dangerous now than in the

first quarter, as shown by the harshness of the price action,"

said Bob Savage, head of markets strategy and insights at BNY

Mellon.

Alphabet and Tesla, two of the so-called

Magnificent Seven companies, are set to report quarterly results

after markets close.

Alphabet shares rose 0.5%, while Tesla fell 0.5%. Other

megacap stocks such as Microsoft ( MSFT ) and Amazon.com ( AMZN )

rose 0.6% and 2.5%, respectively.

The results will test whether a rotation away from megacap

tech stocks in favor of underperforming sectors can continue.

The small-cap Russell 2000 slipped 0.1%.

"Investors always reward growth, and if those smaller

companies who've been overlooked for the first six months can

show outperformance against their peers on a percentage basis,

they're going to get the love," said Kim Forrest, chief

investment officer at Bokeh Capital Partners.

Among other earnings, Spotify Technology ( SPOT ) leapt

13.6% after its second-quarter results were broadly in line with

estimates, while General Motors ( GM ) lost 5.4%.

Coca-Cola

rose 1.0% after increasing its annual sales and

profit forecasts, while Comcast ( CMCSA ) lost 3.8% after it

missed revenue estimates.

Of the 74 S&P 500 companies that have reported quarterly

results during this earnings season, 81.1% beat expectations,

according to LSEG data on Monday.

At 9:50 a.m. ET, the Dow Jones Industrial Average

was down 7.58 points, or 0.02%, at 40,407.86, the S&P 500

was up 10.65 points, or 0.19%, at 5,575.06, and the Nasdaq

Composite was up 51.70 points, or 0.29%, at 18,059.27.

Economic data due to release this week includes the

Personal Consumption Expenditures Price Index, the Fed's

preferred inflation gauge, which will be crucial in assessing

the monetary policy outlook against a backdrop of the recent

inflation downtrend and signs of easing in the labor market.

Bets of a 25-basis-point interest-rate cut by September

have shot up to nearly 92%, from nearly 60% last month,

according to CME's FedWatch Tool, with two rate cuts expected by

the year end.

Declining issues outnumbered advancers for a 1.46-to-1 ratio

on the NYSE, and for a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and one new low,

while the Nasdaq recorded 46 new highs and 30 new lows.