Stocks headed lower early Tuesday as rising oil offset positive earnings from a handful of blue-chip companies. Index futures recently showed the S&P 500 trading 3 points below fair value, while the Nasdaq 100 was set for a 4-point decline. The 10-year Treasury bond was down 3/32 in price to yield 5.08%, while the dollar fell against the yen and euro. Oil reversed yesterday's downtrend and rose as Israel pressed its military offensive against Lebanon into a seventh day. Five people were reported killed in a jet strike at a Lebanese army base overnight, wire reports said, while negotiations for a cease fire remained tenuous. August crude was up 76 cents to $76.06 a barrel. Overseas markets were lower, with London's FTSE 100 falling 0.5% to 5672 and Germany's Xetra DAX down 0.4% to 5394. In Asia, Japan's Nikkei fell 2.8% to 14,437, while Hong Kong's Hang Seng lost 0.1% to 16,044. Stocks closed little changed Monday, ending a three-day streak of heavy losses. For the session, the Dow Jones Industrial Average gained 8 points to 10,747, while the Nasdaq Composite rose fractionally to 2038. In early earnings, Coca-Cola's ( KO) second-quarter earnings rose 7% from last year to $1.84 billion, or 78 cents a share. Adjusted earnings of 74 cents a share were 2 cents ahead of estimates and sales also topped forecasts. Second-quarter net jumped 14% at United Technologies ( UTX) to $1.1 billion, or $1.09 a share. The profit included a 7-cent restructuring charge and was well ahead of First Call estimates. To view Farnoosh Torabi's video take on today's market,
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