There was little good news for investors today as markets remain in a delicate state thanks to poorly-performing energy stocks as well as international uncertainty. Friday's disappointing numbers from the U.S. Commerce Department of sickly second-quarter growth of just 1.2% weren't forgotten by the start of the new week. This added to woes over lower-than-expected corporate earnings.
The Nasdaq was down 0.9% to 5,137.73. Overall, the S&P 500 index was down 0.64% at the end of the day, to 2,157. The fallout crossed all sectors. Ford Motor Company dropped 0.54% to $11.94. Pfizer was also down by 2.47%. Meanwhile Apple shares fell by 1.48% to $104.48. Overall, the downward trend was not severe, but there was little positive news by end of day.
There was some good news, however. On the S&P 400, Avon Products shot up 14.42 percent. Cognex CP, which is involved in machine vision and barcode technology, jumped nearly 8%.
Mid-Session Wrap
US stocks fell sharply at midsession on Tuesday - its sharpest since the UK's Brexit vote on June 23 disrupted global markets - as oil prices sank below $40 a barrel.
This followed a downward trend on other bourses such as Germany and Japan, with some commentators noting that the market was taking a break from a heady rally in recent days. The Canadian dollar, meanwhile, was down slightly.
The S&P 500 index was down 0.82% at 2,152, marking a plateau after a steep dive initially.
The S&P Midcap 400 was not performing any better, down 1.14% to 1,537, a nearly 18 point drop. American Eagle Outfitters (NYSE:AEO) was one of the few companies to beat the market, up 0.33%. Compass Minerals International Inc. (NYSE:CMP) also managed to stave off the downward trend and was up 15% to 68.90.
Gold’s rally was one of the few bright spots of the day, holding its position above 130, up 1.11%. The metal is often seen as a hedge against inflation and a safer bet when other financial indicators are facing negative trends.
Preview
Wall Street shares are set to be under pressure as stocks fall in European and traders pause to consider more US data today.
Yesterday, energy firms were the main culprits in bringing down tickers on Monday, as oil prices plunged 4%, falling below $40 a barrel for the first time in nearly four months.
The S&P 500 market bellwether closed down 0.1% to 2,170, led lower by Diamond Offshore Drilling Inc (NYSE:DO), which was down 7.7% to $20.98 and Transocean Ltd (NYSE:RIG) down 6.7% to $10.25.
The benchmark Dow finished down 0.15% to 6,661, while the tech heavy Nasdaq added 0.43% to stand at 5,184.
In futures markets today, the S&P500 is around five lower, while the Nasdaq is down nine and the Dow Jones is down three points.
It comes as London's FTSE 100 is down 0.48% to 6,661 and the German Dax fell 1.4%. The French CAC 40 lost 1.59% to stand at 4,339.
European banks are doing particularly badly, with Germany's Commerzbank (CRZBY) down around 8% -- after releasing its latest earnings report.
Official US data will show the latest consumer inflation data, which is closely tracked by the Federal Reserve as it considers future rate hikes. It will also release personal income and spending data at the same time.
US crude has recovered somewhat and is up 1.37% to US$40.61 a barrel.