Pharma Earnings and Economic Data Drive S&P 500 and Nasdaq Slide

Wall Street's main indexes declined as investors evaluated mixed earnings reports and absorbed data showing a greater-than-expected slowdown in manufacturing activity in July. Caterpillar's strong second-quarter profit results helped limit losses on the Dow, while Uber's missed revenue expectations led to a 5.4% drop in its stock. Pharmaceutical companies Pfizer and Merck also faced challenges, with Pfizer falling short of revenue expectations and Merck posting a smaller-than-expected loss. The overall decline in second-quarter earnings is now estimated at 5.9% compared to a year earlier. The market is also considering the possibility of a recession versus a soft landing and its implications for rate cuts.