Wall Street took a breather on Tuesday, with the major U.S. stock indices trading near the flatline or showing slight declines during midday trading in New York as investors closely await a series of relevant earnings reports and crucial economic data slated for the remainder of the week.
Both the S&P 500 and the Nasdaq 100 remained stable at their respective all-time highs, while the Dow experienced a slight decrease of 0.4%. Small caps, as represented by the iShares Russell 2000 ETF IWM, weakened by 0.7%.
The dollar and Treasury yields moved higher, likely exerting some resistance on the stock market’s rally. The likelihood of a Fed rate cut in March has decreased to 40% and traders now anticipate a total of five rate cuts, down from six, by December 2024.
With yields rising across various Treasury maturities, the iShares 20+ Year Treasury Bond ETF TLT declined by 1.1%.
Chinese stocks traded in New York saw a strong jump as Beijing announced measures totaling $278 billion to stabilize the country’s troubled stock market. Both Alibaba Group Holdings Ltd. BABA and Baidu Inc. BIDU rose 6.7%, while electric vehicle maker NIO Inc. NIO gained 4.5%.
Bitcoin BTC/USD remained relatively flat, after reaching intraday lows at $38,550, while gold experienced a slight increase of 0.3%.
Tuesday’s Performance In US Major Indices, ETFs
| Major Indices | Price | % |
|---|---|---|
| Nasdaq 100 | 17,338.84 | 0.0% |
| S&P 500 | 4,851.32 | 0.0% |
| Dow Jones | 37,831.33 | -0.4% |
| Russell 2000 | 1971.67 | -0.7% |
The SPDR S&P 500 ETF Trust SPY held steady at $483.31, the SPDR Dow Jones Industrial Average DIA fell 0.5% to $378.22 and the tech-heavy Invesco QQQ Trust QQQ was unchanged at $421.69, according to Benzinga Pro data.
Sector-wise, the Consumer Staples Select Sector Fund XLP outperformed, up 0.9%. The Real Estate Select Sector Fund XLRE fell the most, down 0.7%.
Tuesday’s Stock Movers
- Shares of United Airlines Holdings Inc. UAL rose more than 6% after the company’s strong earnings and revenue results last quarter. The airline released weak guidance for the first quarter after the Boeing 737 Max groundings.
- Other companies reacting to earnings were Verizon Communication Inc. VZ, up 5.4%, and Procter & Gamble PG up 4.4% after earnings and revenue topped estimates.
- 3M Company MMM sank more than 11% after the company’s full-year outlook disappointed. General Electric GE fell nearly 1% after disclosing weaker-than-expected guidance.
- Johnson & Johnson JNJ fell 1.5% despite an earnings and revenue beat, while Lockheed Martin Corp. LMT fell over 4% as the company’s CEO announced that profits from F-35 sales could weaken into the third quarter amid global supply chain disruptions.
- Netflix Inc. NFLX was flat ahead of its earnings release, scheduled after market close. The streaming giant secured WWE rights from January 2025, striking a $5-billion agreement with TKO Group Holdings Inc. TKO, which rose 13%.
- Texas Instruments TXN and Intuitive Surgical ISRG will also report after the closing bell.
Photo via Shutterstock.
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