Stocks fell Tuesday morning following the drop in world stock and crude oil prices and a pause after a rally in the past two sessions.
This Nasdaq has pulled out of its new closing high. The S&P 500 has returned to slightly negative territory for the year to date, one day after becoming positive for the year at Monday’s close. The energy, financial services and industrial sectors – which had led the index up in recent sessions – underperformed on Tuesday.
The US economy went into recession after peaking in February, ending what had been the longest expansion since World War II. However, the retrospective call did little to push up markets. “Data-reactid =” 18 “> A day earlier, Monday’s stock growth occurred on the same day that the National Bureau of Economic Research (NBER) announced that the US economy has entered a recession after reaching a peak in February, ending the longest expansion since World War II.
Brent Schutte, chief investment strategist for Northwestern Mutual, The Ticker told Monday Finance. “The market is a forward-looking mechanism – it looks forward to a better future, it reflects the fact that we are opening up large swathes of the US economy without significant spikes in cases. “” Data-reactid = “19”> “We told people to ignore the economics,” Brent Schutte, chief investment strategist at Northwestern Mutual, told The Ticker’s Yahoo Finance on Monday. The market is a forward-looking mechanism – it looks forward to a better future, it reflects the fact that we are opening up large swathes of the US economy without significant spikes in cases. “
“We believe that in the future, while the returns will certainly not be what they are today or what they have been in recent months, there is still value in different parts of the market for investors, “Schutte told me. He said he still sees value in the cyclical stocks that will benefit most from the reopening, as well as in some national small and mid-cap companies and in some international stocks.
massive stimulus efforts by the Federal Reserve as a key driver of the seizing 44.5% rally in S & amp; P 500 since its closing trough on March 23. “Data-reactid =” 21 “> Others have highlighted the Federal Reserve’s massive stimulus efforts as a key driver of the S&P 500 strike’s 44.5% recovery since its closing low on March 23.
“The stock market is driven by the liquidity and the hope of a vaccine; both are likely to persist, “wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics.
“The rapid growth in money supply alone is not enough to stimulate stocks, but profits are likely to rebound. It is difficult to be bearish, although further blockages and vaccine disappointments are real risks, “he added.
broadened the scope of its main street loan program first announced in mid-March by lowering the minimum loan size, increasing the maximum loan limit and extending the terms of the loan to five years to encourage participate in the program. The Federal Open Market Committee kicks off on the first day of its two-day meeting Tuesday, and will issue its final monetary policy decision on Wednesday. “Data-reactid =” 24 “> The Fed widened the scope of its main street loan program announced for the first time in mid-Monday by lowering the minimum loan size, increasing the maximum loan limit. and extending the terms of the loan to five years to encourage participation in the program. The Federal Open Market Committee begins Tuesday the first day of its two-day meeting and will issue its latest monetary policy decision on Wednesday.
9:40 a.m.ET: Macy’s jumped more than 7% after announcing the reopening of 450 stores in early June
M) said in preliminary results for the first quarter Tuesday that it had reopened about 450 stores by June 1, “with the majority open in their full format,” according to a statement. The stock surged more than 7% shortly after the market opened following the announcement. “Data-reactid =” 27 “> Macy’s (M) said Tuesday in preliminary results for the first quarter that it had reopened about 450 stores by June 1,” with the majority opened in their full format, “according to a statement. . The stock surged more than 7% shortly after the market opened following the announcement.
“Our reopened stores are performing better than expected,” he added. “We are seeing a strong sale of seasonal merchandise and expect to exit the second quarter in our own inventory position.”
9:32 a.m.ET: stocks open lower, prolonging overnight losses
Here are the main movements on the markets at 9:32 a.m.ET:
- S&P 500 (^ GSPC): -36.11 points (-1.12%) to 3,196.28
- Dow (^ DJI): -359.87 points (-1.31%) to 27,212.57
- Nasdaq (^ IXIC): -54.18 points (-0.55%) to 9,870.56
- Gross (CL = F): – $ 0.17 (-0.45%) to $ 38.02 per barrel
Gold (GC = F): +18.10 (+ 1.06%) to $ 1,723.20 per ounce
10-year treasury (^ TNX): -6.7 bps for a yield of 0.817%
7:34 a.m.ET: Tiffany posts a loss in the first quarter, but highlights the rebound in sales in China and reaffirms the agreement with LVMH
TIF) Tuesday reported a larger than expected loss per share and a sharper decline in revenues for the quarter ended April 30, as the coronavirus pandemic criticized the jewelry maker’s results. “Data-reactid =” 41 “> Tiffany (TIF) reported Tuesday a larger than expected loss per share and a more pronounced drop in revenues for the quarter ended April 30, as the coronavirus pandemic criticized the results of the jewelry maker.
The company’s first quarter adjusted loss per share was 53 cents compared to the expected 27 cents. Net sales amounted to $ 555.5 million, down 45% from last year and below expectations for $ 611.9 million.
Comparable store sales on a like-for-like basis in constant currencies fell in all major geographic regions, with the Americas posting the largest decline at 44%. However, the company said it had experienced a major recovery in China, the first country hit by the virus, as of April, with retail sales up 30% from the previous year this month.
Tuesday’s income statement, “I am delighted that we are embarking on this journey with LVMH by our side. “Data-reactid =” 44 “> Tiffany also reiterated that it would enter into an agreement to be acquired by luxury company LVMH. CEO Alessandro Boglioli said in Tuesday’s income statement, “I am delighted that we are embarking on this journey with LVMH at our side. ”
7:19 a.m. EST Tuesday: Stock futures fall, Dow futures fall 250+ points
Here are the main movements on the markets at 7:19 a.m.ET:
S&P 500 Futures (ES = F): 3,199.75, down 27.75 points or 0.86%
Dow Futures (YM = F): 27,257.00, down 270 points, or 0.98%
Nasdaq Futures (NQ = F): 9,840.5, down 44.25 points or 0.45%
Gross (CL = F): – $ 0.61 (-1.6%) to $ 37.58 per barrel
Gold (GC = F): + $ 9.30 (+ 0.55%) to $ 1,714.40 per ounce
10-year treasury (^ TNX): -5.2 bps for a yield of 0.832%
6:03 p.m. Monday ET: Equity futures changed little to launch the night session
Here are the main actions taken at the start of the night session for American equity futures, starting at 6:03 p.m. ET:
S&P 500 Futures (ES = F): 3,224.5, down 3 points or 0.09%
Dow Futures (YM = F): 27,534.00, up 7 points, or 0.03%
Nasdaq Futures (NQ = F): 9,877.00, down 7.75 points or 0.08%
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