Close
US markets ended mixed, with the Nasdaq Composite in the red while the Dow Jones and the S&P 500 made modest progress.
The Nasdaq shed 12 points to close at 4,891, with Apple (NASDAQ:AAPL), down 2.5%, leading the decline but the other two benchmarks broke a three-day losing streak; the Dow Jones edged up 10 points to 17,159, reversing earlier heavy losses, while the S&P advanced four points to 2,017, assisted by demand for defensive stand-by favorites, such as telecoms and utilities.
Attempts by President Obama to curb gun ownership may actually lead to more US citizens owning guns, according to some pundits. Speculators piled into stocks of gun makers such as Smith & Wesson (NYSE:SWHC) and Sturm, Ruger (NYSE:RGR), with the former up 11.1% and the latter 6.8% firmer.
Afternoon wrap
US shares were stabilizing but still mixed heading into Tuesday's close.
It comes after turmoil in Chinese markets and continued fears concerning the energy market, which sent a barrel of crude below US$36 a barrel - down 2.26%.
The Dow Jones was actually making up ground at the time of writing - seven points ahead at 17,156.
The Nasdaq was under pressure - down two at 4,902, while the broader based S&P500 was up five points at 2,018.
Market open
US shares got off to a lower start with the benchmark Dow Jones slipping 28 points to 17,118 at the time of writing as traders still seem to be in a holiday slumber.
The Nasdaq eased two points at 4,901 and the S&P500 was down at 2,011.
Chris Beauchamp, analyst at spread better IG, said: "US markets are showing distinct signs of fatigue after their multi-year run, but with earnings growth on the slide and Federal Reserve tightening jitters front and centre, it will be hard to cobble together a narrative to get the post-2008 bull market back on track."
That said, markets did show signs of stabilizing somewhat after the Chinese turmoil.
Drugs giant Eli Lilly (NYSE:LLY) added 2.64% to US$85.06 making up for ground lost earlier after it cut its earnings guidance for the 2015 year.
EPS (earnings per share) are now expected to be in the range of US$2.28 and US$2.33 on a reported basis, compared to previous expectations of US$2.40 to US$2.45.
It added that it expects revenue to range between US$20.2bn and US$20.7bn for the year against a consensus of revenue of US$21.6BN.
A notable tech loser was Shenandoah Telecommunications (NASDAQ:SHEN), which shed over 50% to US$20.10. Yesterday, it announced an agreement to purchase West Virginia's Colane Cable TV for US$2.4 million.
In commodities, Oro East Mining (OTCBB: OROE) shed 72%, while Halcon Resources (NYSE:HK) slipped 81.34%.
Market Preview
In keeping with the trend of the New Year, US shares are set to plunge lower again on Tuesday.
On Monday (January 4) they had one of the worst first trading days of the year in recent memory.
The S&P 500 made its worst start to the year in 15 years, shedding 1.5%, or 31 points at 2,013 while the Dow Jones Industrial Average declined 1.6% or 276 points to 17,149.
The tech-heavy Nasdaq was harder hit, shedding 2.1% or 104 at 4,903, as investors banked profits on Netflix and Amazon (NASDAQ:AMZN), both of which had stellar years in 2015.
Indeed, analysts are already speculating that the first day falls indicate a general bear market for the rest of 2016.
In Wall Street futures trading today, the Dow Jones is down a further 107 points, while the S&P is down 12.75. The Nasdaq is down 29 points.
In London, FTSE100 is currently down 0.03% to 6,095, while the oil price, having gained ground overnight, fell on over oversupply worries - and WTI is now down 0.14% to US$36.71 per barrel.
In terms of data stateside, traders will be eyeing auto sales for December to be posted this afternoon and The Institute of Supply Management is due to post its economic activity index for January this morning.