BackUS stocks fall, oil prices steady
Dow Jones drops 0.07%, S&P 500 down 0.08%, Nasdaq Composite falls 0.23%
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US stocks fell on Tuesday as Apple’s shares remained under pressure, hitting their lowest in more than six months, and investors digested earnings reports from a host of companies.
The iPhone maker’s shares fell as much as 4.4% to $113.25, slipping firmly below their 200-day daily moving average, a key technical level closely watched by traders. The stock was also the biggest drag on the three major US indices.
While there was no clear trigger for the selloff, traders said worries over China slowdown and skepticism over demand for iPhone 6s were likely to keep the stock under pressure.
With a bulk of the S&P 500 companies having reported results, investors are taking to the sidelines ahead of Friday’s monthly jobs data.
The report is shaping up to be critical for the market as it can provide clues on the timing of a rate hike. The US economy created 225,000 new jobs in July, according to economists polled by Reuters.
“Given the importance of such a big numbers, investors are taking a wait-and-see approach," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
Wall Street ended lower on Monday as tumbling oil prices dragged energy shares to a three-year low and factory data from China raised concerns about the world’s second-biggest economy.
In the United States, consumer spending recorded its smallest gain in four months, while the pace of growth in the manufacturing sector slowed in July.
Soft data has prompted some investors to argue that the US Federal Reserve might hold off on raising rates until December. After the Fed meeting last week, investors expected a rate increase in September.
“The market is getting such a mixed bag of rhetoric from the Fed, it seems like the Fed isn’t sure what it’s going to do," Ablin said.
The Fed, which has kept interest rates near zero for nearly a decade, has said it will raise rates only when it sees a sustained recovery in the economy.
Oil prices steadied but have fallen more than 20% over the last month, while copper—seen as a bellwether of global growth—nudged off a six-year low.
At 11:05 am ET (1505 GMT) the Dow Jones industrial average was down 12 points, or 0.07%, at 17,586.2, the S&P 500 was down 1.59 points, or 0.08%, at 2,096.45 and the Nasdaq Composite was down 11.68 points, or 0.23%, at 5,103.70.
Six of the 10 major S&P sectors were higher with the materials index’s 0.86% rise leading the advancers. The energy index reversed course to trade down.
Among other companies scheduled to release results on Tuesday are Dow component Walt Disney, Devon Energy and Genworth Financial.
Baxalta shares jumped 13.3% to $37.55 after Shire said it was seeking to buy the company in a $30 billion all-share deal. US-listed shares of Shire fell 5.6% to $253.07.
American International Group fell 5.1% to $60.90 after the insurer’s underwriting income fell in almost all of its units, while home and auto insurer Allstate fell 11.5% to $61.40 after its profit missed expectations.
Coach was up 5.9% at $32.27 after the handbag-maker’s results beat expectations.
Regeneron Pharmaceuticals rose 7.1% to $593.42 after the biotechnology company reported a 50% rise in quarterly revenue.
Advancing issues outnumbered decliners on the NYSE by 1,805 to 1,074. On the Nasdaq, 1,515 issues rose and 1,069 fell.
The S&P 500 index showed 26 new 52-week highs and 11 new lows, while the Nasdaq recorded 72 new highs and 76 new lows. Reuters
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