NEW YORK: Investors turned more cautious as US stock indexes closed lower on Tuesday ahead of a US consumer price index report and a meeting between US political leaders to discuss the debt ceiling.
Investors will be watching whether inflation is easing after the Labor Department’s Consumer Price Index (CPI) report on Wednesday.
US debt limit talks kept markets cautious as traders also awaited an update on debt limit plans from a meeting at the White House between US President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders.
Concerns of a possible government default hang over Washington as early as June 1 if Congress does not act to resolve the impasse.
“Overall, it’s a relatively light day, but both the debt ceiling and inflation are causing some concern,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.
Dow Jones Industrial Average fell 56.88 points, or 0.17%, to 33,561.81, the S&P 500 fell 18.95 points, or 0.46%, to 4,119.17 and nasdaq The Composite closed down 77.36 points, or 0.63%, at 12,179.55.
Volume on US exchanges stood at 9.35 billion shares compared to an average of 10.68 billion for the entire session over the past 20 trading days.
Gloomy forecasts from companies such as PayPal and Apple supplier Skyworks also weighed on the mood. They were down 12.73% and 5.15% respectively.
Shares of PayPal Holdings declined and weighed on the benchmark S&P 500 after the company cut its margin forecast. The stock was also among the top drags on the Nasdaq.
Shares of Skyworks Solutions Inc declined after the company reported current-quarter revenue and earnings below estimates.
“Companies are generally beating earnings expectations, but earnings season is always volatile, and we had some weak results today,” said Tim Ghrisky, senior portfolio strategist at Ingalls & Snyder in New York. is weighing.”
Pacwest Bancorp had another volatile day, leading among regional banks earlier in the session before closing up 2.35%.
Steve Sosnik, chief strategist at Interactive, said: “Any relief we get in terms of regional banking stress is good, but it’s too early to say things are back to normal, as a couple of very weak banks have had a tough day.” going good.” The brokers said.
Shares of other Apple suppliers declined, including Qualcomm, Broadcom, Qorvo and Corning. The Philadelphia SE Semiconductor index closed down 1.87%.
Boeing Co rose 2.34% after budget carrier Ryanair Holdings Plc placed a multibillion-dollar order for Boeing jets.
Novavax gained 27.79% as the drugmaker plans to cut 25% of its global workforce.
Under Armor Inc fell 5.66% as the sports apparel maker reported its annual sales and profit estimates below Street expectations.
Dialysis service provider DaVita Inc jumped 12.90% on its annual profit forecast increase as demand for procedures rises in the US
Issues declining compared to issues advancing on the NYSE at a ratio of 1.59-to-1; On the Nasdaq, a 1.35-to-1 ratio favored declines.
The S&P 500 posted 14 new 52-week highs and 14 new lows; The Nasdaq Composite recorded 77 new highs and 171 new lows.
Investors will be watching whether inflation is easing after the Labor Department’s Consumer Price Index (CPI) report on Wednesday.
US debt limit talks kept markets cautious as traders also awaited an update on debt limit plans from a meeting at the White House between US President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders.
Concerns of a possible government default hang over Washington as early as June 1 if Congress does not act to resolve the impasse.
“Overall, it’s a relatively light day, but both the debt ceiling and inflation are causing some concern,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.
Dow Jones Industrial Average fell 56.88 points, or 0.17%, to 33,561.81, the S&P 500 fell 18.95 points, or 0.46%, to 4,119.17 and nasdaq The Composite closed down 77.36 points, or 0.63%, at 12,179.55.
Volume on US exchanges stood at 9.35 billion shares compared to an average of 10.68 billion for the entire session over the past 20 trading days.
Gloomy forecasts from companies such as PayPal and Apple supplier Skyworks also weighed on the mood. They were down 12.73% and 5.15% respectively.
Shares of PayPal Holdings declined and weighed on the benchmark S&P 500 after the company cut its margin forecast. The stock was also among the top drags on the Nasdaq.
Shares of Skyworks Solutions Inc declined after the company reported current-quarter revenue and earnings below estimates.
“Companies are generally beating earnings expectations, but earnings season is always volatile, and we had some weak results today,” said Tim Ghrisky, senior portfolio strategist at Ingalls & Snyder in New York. is weighing.”
Pacwest Bancorp had another volatile day, leading among regional banks earlier in the session before closing up 2.35%.
Steve Sosnik, chief strategist at Interactive, said: “Any relief we get in terms of regional banking stress is good, but it’s too early to say things are back to normal, as a couple of very weak banks have had a tough day.” going good.” The brokers said.
Shares of other Apple suppliers declined, including Qualcomm, Broadcom, Qorvo and Corning. The Philadelphia SE Semiconductor index closed down 1.87%.
Boeing Co rose 2.34% after budget carrier Ryanair Holdings Plc placed a multibillion-dollar order for Boeing jets.
Novavax gained 27.79% as the drugmaker plans to cut 25% of its global workforce.
Under Armor Inc fell 5.66% as the sports apparel maker reported its annual sales and profit estimates below Street expectations.
Dialysis service provider DaVita Inc jumped 12.90% on its annual profit forecast increase as demand for procedures rises in the US
Issues declining compared to issues advancing on the NYSE at a ratio of 1.59-to-1; On the Nasdaq, a 1.35-to-1 ratio favored declines.
The S&P 500 posted 14 new 52-week highs and 14 new lows; The Nasdaq Composite recorded 77 new highs and 171 new lows.