The large-cap indices closed slightly lower on Tuesday, with the S&P 500 losing 0.2% after hitting an all-time high shortly after the open. The Nasdaq Composite (-0.1%) and Dow Jones Industrial Average (-0.1%) performed comparably in a tight-ranged session, while the Russell 2000 (-0.6%) underperformed.
Sector performances were mixed. The S&P 500 real estate (+1.1%), consumer staples (+0.9%), and communication services (+0.8%) finished atop the standings with decent gains, while the energy (-2.1%), materials (-1.4%), utilities (-1.0%), industrials (-0.9%), and financials (-0.8%) sectors struggled in negative territory.
In a sense, market dynamics remained consistent with those in recent sessions, such that value stocks underperformed, mega-cap stocks provided influential support, and GameStop (GME 147.98, +71.19, +92.7%) continued to captivate Wall Street with its speculative run. Microsoft (MSFT 232.33, +2.29, +1.2%) gained 1% ahead of its earnings report after the close.
The latest batch of earnings reports, meanwhile, came in mostly better than expected with little market-moving effect.
Johnson & Johnson (JNJ 170.48, +4.50, +2.7%), General Electric (GE 11.29, +0.30, +2.7%), and 3M (MMM 175.95, +5.56, +3.3%) were notable winners, while Verizon (VZ 56.57, -1.85, -3.2%) and American Express (AXP 116.15, -5.00, -4.1%) had disappointing reactions to their positive results. JNJ and Verizon also issued upbeat guidance.
Separately, shares of Beyond Meat (BYND 186.83, +28.10, +17.7%) gained 18% after the company formed a joint venture with PepsiCo (PEP 141.80, +1.62, +1.2%) to create plant-based snacks and beverages. Twitter (TWTR 49.67, +1.83, +3.8%) shares rose 4% after the company said it acquired Revue, a service to create editorial newsletters.
U.S. Treasuries finished little changed in a lackluster session. The 2-yr yield was flat at 0.12%, and the 10-yr yield was flat at 1.04%. The U.S. Dollar Index decreased 0.3% to 90.14. WTI crude futures decreased 0.3%, or $0.15, to $52.62/bbl.
Reviewing Tuesday's economic data:The Conference Board's Consumer Confidence Index increased to 89.3 in January (Briefing.com consensus 89.0) from a downwardly revised 87.1 (from 88.6) in December.The key takeaway from the report is that the optimism about the short-term outlook outweighed a weakening view about current business and labor market conditions.The S&P Case-Shiller Home Price Index increased 9.1% in November (Briefing.com consensus 9.0%) following an upwardly revised 8.0% reading in October (from +7.9%).The FHFA Housing Price Index increased 1.0% in November.
Looking ahead, investors will receive Durable Goods Orders for December, the FOMC Rate Decision, and the weekly MBA Mortgage Applications Index on Wednesday.Russell 2000 +8.9% YTDNasdaq Composite +5.7% YTDS&P 500 +2.5% YTDDow Jones Industrial Average +1.1% YTD
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