US Indexes Lower for a Second Day Tuesday
The Dow Jones Industrial Average closed at 23,018.88 on Tuesday with a loss of 631.56 points or -2.67%. The S&P 500 closed at 2,736.56 for a loss of 86.60 points or -3.07%. The Nasdaq Composite closed at 8,263.23 for a loss of -297.50 points or -3.48%. The VIX Volatility Index was higher at 45.42 for a gain of 1.59 points or 3.63%.
Tuesday's market movers
The oil market kept U.S. stocks down for a second day on Tuesday. The S&P 500 energy sector finished with a loss of 1.03%. WTI crude oil rebounded from a trading price of -$38 yesterday to $13.50 on Tuesday. In the oil market, demand has weakened from coronavirus stay at home orders. OPEC+ production cuts are also not scheduled to go into effect until May 1, which has added to supply challenges.
In the U.S., coronavirus cases increased to over 780,000. Congress and the White House announced an agreement on a $480 billion package that would provide funds for hospitals and more money for small businesses.
Georgia and South Carolina have announced plans for reopening this week. Many other states have stay at home orders lasting through the end of April. In the Northeast, most states are looking toward mid-May for re-evaluating economic activities.
On the earnings calendar:
Coca-Cola (KO): Revenue of $8.6 billion decreased 1.0% year over year and beat estimates by $280 million. First-quarter GAAP earnings of 64 cents per share beat estimates by 20 cents and non-GAAP EPS of 51 cents beat estimates by 7 cents.
Travelers (TRV): Reported net earned premiums of $7.23 billion, increasing 5.4% year over year and missing estimates by $70 million. First-quarter GAAP earnings per share of $2.33 missed estimates by 42 cents and non-GAAP earnings of $2.62 missed estimates by 23 cents.
Philip Morris (NYSE:PM): Revenue of $7.15 billion increased 5.9% year over year and beat estimates by $280 million. First-quarter GAAP earnings of $1.17 per share beat estimates by 4 cents and non-GAAP earnings of $1.21 beat estimates by 8 cents.
Netflix (NFLX): Revenue of $5.77 billion increased 27.7% year over year and beat estimates by $20 million. Global memberships increased by 22.8% year over year to 182.86 million. First-quarter GAAP earnings of $1.57 missed estimates by 7 cents.
Economic reports affecting market trading included the following:
Existing home sales decreased 8.5% in March to a seasonally adjusted annual rate of 5.27 million.
The Treasury held auctions for 52-week bills at a rate of 0.165% and 119-day bills at a rate of 0.11%. The 10-year Treasury's yield ended at 0.564%.
In the S&P 100, the following stocks led losses for the day:
Philip Morris (NYSE:PM) -6.06%
American International Group (NYSE:AIG) -5.96%
NVIDIA (NASDAQ:NVDA) -5.77%
Merck (NYSE:MRK) -5.63%
Citigroup (NYSE:C) -5.29%
General Motors (NYSE:GM) -4.98%
Capital One (NYSE:COF) -4.98%
Oracle (NYSE:ORCL) -4.87%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,186.33 for a loss of 27.02 points or -2.23%. The S&P 600 closed at 692.66 for a loss of 15.46 points or -2.18%. The Dow Jones U.S. Small-Cap Growth Index closed at 8,047.80 for a loss of 228.83 points or -2.76%. The Dow Jones U.S. Small-Cap Value Index closed at 5,877.27 for a loss of 103.45 points or -1.73%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,490.58 for a loss of 41.91 points or -2.73%; the S&P 100 at 1,259.47 for a loss of 39.91 points or -3.07%; the Nasdaq 100 at 8,403.00 for a loss of 323.51 points or -3.71%; the Russell 3000 at 1,575.50 for a loss of 49.57 points or -3.05%; the Russell 1000 at 1,500.81 for a loss of 47.90 points or -3.09%; the Wilshire 5000 at 27,542.08 for a loss of 860.81 points or -3.03%; and the Dow Jones U.S. Select Dividend Index at 544.07 for a loss of 13.51 points or -2.42%.
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This article first appeared on GuruFocus.
