US stocks ended lower on Tuesday after a day dogged by poor performance from a major retail name, sharp words in the oil price war, and a yawning trade deficit with the world.
US January balance of trade deficit came in at its widest in five years, while oil prices were softer when the energy sector led declines following comments from Saudi Arabia’s energy minister that emboldened US shale developers may undermine efforts to shore up oil prices. The West Texas Intermediate was down 0.2% at $53.12.
The S&P 500 market bellwether ended down 0.3% at 2368 and led by Frontier Communications Corp (NASDAQ:FTR) down 5.1% at $2.62 after the stock was downgraded by Bank of America Corp from Buy to Neutral.
Despite huge hopes the market might be underpinned by a tech IPO last week, there was no sign of it on Tuesday. Shares in the company behind the disappearing message app Snapchat, Snap Inc (NYSE:SNAP) ended down 9.8% at $21.44. At one point the shares shed more than 12% and touched a low of $20.64.
Selling intensified as the euphoria that had greeted its market debut last week appeared to be fading and analysts were unwilling to award it a Buy rating.
The shares started trading at $24 on Thursday after the IPO priced at $17 on late Wednesday.
Meanwhile, enthusiasm for Dick’s Sporting Goods waned on Tuesday, leaving the company’s shares nursing their biggest one-day drop since November 2015 after the sporting-goods retailer issued a downbeat forecast.
Dick’s shares ended down 8.6% at $48.08 and one of the top fallers of the S&P Midcap 400 which closed down 0.6% at 1718.
Signet Jewelers (NYSE:SIG) was another standout stock for all the wrong reasons.
The once high-flying retailer behind Kay Jewelers and Zales has seen its shares drop by a third to $62.60 so far this year, leaving it the worst-performing stock on the S&P 500 - even as US stocks have pushed deeper into record territory.
Signet shares ended down 3.6% at $63.25 on Tuesday.
The S&P Smallcap 600 ended down 0.7% at 837 and led by Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) down 11.3% to $26.40.
Early trading
US shares were lower on Tuesday, with the world’s biggest economy’s trade deficit gaping to its widest in five years while a sportswear retailer depressed the market.
The S&P 500 market bellwether was down 0.3% at 2368 and the Dow Jones Industrial Average was down 0.2% at 20,919, while the Nasdaq Composite was down 0.1% at 5838.
The US balance of trade in January was a deficit of $48.5bn, as expected, and up from a deficit of $44.3bn in December. However, it isn’t seen as much of a market mover as the deficit did not expand more.
Dicks Sporting Goods Inc (NYSE:DKS) shares, already bruised pre-market extended losses and were down 8.9% at $47.92 after the company reported earnings for the fourth quarter and presented first quarter guidance below Wall Street expectations.
Meanwhile, Snapchat vanishing messenger owner Snap Inc (NYSE:SNAP) also extended pre-market losses and were down 9.5% at $21.51 – well below their opening levels at $24 and closing in on last Wednesday’s IPO pricing level of $17 as the big unwind of its much-hyped debut last week continued. A chorus of analysts on Monday refused to give it a Buy rating.
Among S&P 500 stocks, the biggest decliner was healthcare group Endo Int'l Plc (NASDAQ:ENDP, TSE:ENDP) down 7% to $10.60. Last Friday Endo announced that it has applied to the Toronto Stock Exchange to have its ordinary shares delisted from the TSX at the close of business on March 17.
Endo’s Canadian stock was down 5.8% at C$14.38 on Tuesday.
The S&P Midcap 400 was down 0.4% at 1721 and led by Dick’s Sporting Goods Inc (NYSE:DKS) down 8.5% to $48.15 after investors tracked a poor outlook for the company.
The S&P Smallcap 600 was down 0.5% at 839 and led by Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) down 12.1% to $26.15.
Pre-Open
US stocks are set to open lower on Tuesday, extending losses sustained the previous day, with the world’s biggest economy’s trade deficit gaping to its widest in five years while a sportswear retailer depressed the market.
The S&P 500 market bellwether and Nasdaq Composite are indicated down 0.2% while the Dow Jones Industrial Average is seen backing further away from last week’s 21,000 milestone with a 0.1% loss.
The US balance of trade in January was a deficit of $48.5bn, as expected, and up from a deficit of $44.3bn in December. However, it isn’t seen as much of a market mover as the deficit did not expand more.
Dicks Sporting Goods Inc (NYSE:DKS) shares were 4.1% lower at $50.45 pre-market after the company reported earnings for the fourth quarter and presented first quarter guidance below Wall Street expectations.
Meanwhile, Snapchat vanishing messenger owner Snap Inc (NYSE:SNAP) were indicated 5.2% lower at $22.53 pre-market as the big unwind of its much-hyped debut last week continued. A chorus of analysts on Monday refused to give it a Buy rating.
UBS (NYSE:UBS) ADRs in New York were lower on Tuesday as the Swiss bank set itself up for a confrontation with US regulators.
UBS has compared notes with British bank Barclays (NYSE:BCS) about the US mortgage bond mis-selling scandal and is considering following the UK bank’s example and refusing to settle with the Department of Justice.
Barclays raised eyebrows in December when it became the first bank to say that it would not settle with the DoJ over allegations it had mis-sold mortgage bonds because the amount the DoJ demanded was not proportionate to the sums other banks settled for.
Around the same time, Deutsche Bank (NYSE:DB) and Credit Suisse (NYSE:CS) agreed to settlements totaling $12.5bn.
UBS ADRs were 0.8% lower at $15.67 pre-market. Meanwhile, Barclays’ ADRs were up 0.3% at $11.11.
However, those who did settle appear to be underperforming. Deutsche Bank ADRs were seen down a hefty 1.8% at $18.27 while Credit Suisse was down 0.9% at $15.04.