Markets closed lower Tuesday, following Monday’s pullback.

Airline and cruise stocks led the major indexes lower, even as companies announce sizable positive earnings gains amid concerns of rising COVID-19 case counts.

U.S. 10-year bond yields are hovering around 1.6 percent still significantly lower than the highs reached in recent weeks.

International equities were also lower today, taking their lead from the American markets. Gold ticked up while oil fell.

Several companies including P&G and Coca-Colo, have reported that they will raise prices on consumer prices to offset rising commodity costs.

The news comes as investors are concerned about near-term inflation rising, which would drive up costs and have a downward pull on equity valuations.

However, rising commodity prices also highlight an economy in recovery, with the unemployed finding work and consumer demand remaining resilient as the vaccine rollout continues and as COVID-19-related restrictions ease.

With economic news light this week, investors will remain focused on earnings data, the pace of the vaccine rollout and news about President Joe Biden’s proposed infrastructure plan.

Although companies have largely reported better-than-expected results thus far, many of the positive earnings reports are one-time events, with investors looking to the sustainability of the earnings amid the concerns over inflation.

With expectations setting a high bar for equities, short-term pullbacks could be more likely. But the long-term outlook for stocks remains positive, with a multiyear bull market taking shape.

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