The S&P 500 extended its record-setting rally on Tuesday as investors turned their attention to a series of earnings reports, seeking insights into the health of corporate America and the overall economy. The index rose nearly 0.3%, reaching a new closing high of 4,864.61. The Nasdaq Composite also experienced gains, rising 0.4%, while the Dow Jones Industrial Average slipped about 0.2% after reaching above 38,000 for the first time on Monday.

Tech stocks have been driving the market to new record highs, but on Tuesday, the focus shifted to earnings in other sectors, which served as the key market movers. One notable disappointment came from industrial conglomerate 3M, whose shares tumbled over 10% as the company's 2024 profit outlook fell below Wall Street's expectations.

However, consumer staples and communications services emerged as the biggest gainers in the S&P 500, with staples rising over 1% as investors analyzed quarterly results from Procter & Gamble and Verizon, among others. United Airlines also provided a positive earnings outlook for 2024, leading to a 5% increase in its shares. This news also had a positive impact on other airlines such as Delta and American Airlines.

After the market hit new highs, analysts from UBS pointed out that not all stocks are expensive. According to their analysis, 77% of S&P 500 companies currently trade at a discount to their January 2022 levels, and 55% of those companies have a lower price-to-earnings ratio compared to the previous market top. This presents a potential buying opportunity for investors.

Meanwhile, the homebuilder sector faced a setback as D.R. Horton reported weaker-than-expected quarterly orders and lower-than-expected first-quarter earnings per share. The news caused a 9% drop in the company's shares and subsequently dragged down the SPDR S&P Homebuilders ETF, which had reached record highs just the day before.

In the energy market, oil futures wavered on Tuesday due to the restarting of production at Libya's largest oil field and cold temperatures impacting output in North Dakota. West Texas Intermediate dropped initially but later recovered, trading near $75 per barrel. Brent futures also fell initially but eventually climbed above $80 per barrel, following a 2% increase in the previous session.

In other news, Netflix and TKO Group announced a partnership that will bring WWE's flagship program, Raw, to the streaming service starting in January 2025. The 10-year deal marks Netflix's entry into the live sports entertainment industry. Shares of TKO surged over 20% on the announcement, while Netflix shares remained steady after a pre-market jump.

Overall, earnings reports continue to drive market activity, with companies like 3M, Johnson & Johnson, and General Electric experiencing varying reactions to their quarterly results. The Dow Jones Industrial Average and the S&P 500 maintained their positions near record highs, while the Nasdaq Composite also showed strength. Investors will be closely watching further earnings releases to gauge the overall health of corporate America and the economy.