Highlights
Equities mostly edged down Tuesday amid mixed earnings news, an uptick in bond yields, and the sense the market remained due for downward correction. The Dow industrial average firmed 0.2 percent, the S&P 500 lost 0.3 percent, and the Nasdaq slipped 0.4 percent. US Treasury yields rose while the dollar and oil prices declined.
Rising yields, including the 10-year's move back above 4 percent, renewed concern about valuations after recent gains, and bolstered the view that fixed income looks good relative to riskier assets.
Worst performers on the day reflected disappointing earnings, including airlines, with Jet Blue tanking on gloomy guidance. Other losers included technology hardware, with Zebra reporting a revenues and profits miss; travel & leisure, with Norwegian Cruise Lines dropping on poor earnings; ride sharing, with Uber reporting weakness in its freight business; and software, with DoubleVerify missing growth expectations.
Other decliners included banks, energy, and health care. On the positive side were machinery, paced by strong results at Caterpillar; health care, on good news from Tenet Healthcare; and tools and hardware, lifted by news of a smaller than expected loss from Stanley Black & Decker.
Rising yields, including the 10-year's move back above 4 percent, renewed concern about valuations after recent gains, and bolstered the view that fixed income looks good relative to riskier assets.
Worst performers on the day reflected disappointing earnings, including airlines, with Jet Blue tanking on gloomy guidance. Other losers included technology hardware, with Zebra reporting a revenues and profits miss; travel & leisure, with Norwegian Cruise Lines dropping on poor earnings; ride sharing, with Uber reporting weakness in its freight business; and software, with DoubleVerify missing growth expectations.
Other decliners included banks, energy, and health care. On the positive side were machinery, paced by strong results at Caterpillar; health care, on good news from Tenet Healthcare; and tools and hardware, lifted by news of a smaller than expected loss from Stanley Black & Decker.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
