Wall Street finished with a mixed performance Tuesday as tech stocks took a hit prior to the unveiling of Apple’s quarterly earnings while the Dow Jones Industrial Average was boosted by industrial stocks.
Interest rates also garnered attention as investors looked ahead to the conclusion of the Federal Reserve’s monetary policy meeting on Wednesday. Analysts expect the Fed will hold rates steady.
By the close, the Dow Jones Industrial Average finished 51.7 points higher at 24,579, pushed up by Pfizer, United Technologies Corp, 3M and Caterpillar Inc.
In contrast, the S&P 500 slipped by 0.15% to 2,640 while the tech-laden Nasdaq shed 0.81% to 7,028.
Tuesday brought a mixed set of quarterly results from companies, with 3M (NYSE:MMM) adding 2% to hit $196.95 in the wake of its results in the fourth quarter exceeding estimates.
The pharmaceutical giant Allergan Plc (NYSE:AGN), meanwhile, tumbled 8.6% to $145.12 after the maker of Botox projected that its revenue this year will fall short of expectations.
Tech stocks also finished lower, with the S&P 500 tech index dropping 1% to 1,130 and shares of Amazon.com (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Facebook (NASDAQ:FB) all ending more than 2% lower.
In Canada, Toronto’s TSX closed 84 points higher to hit 15,463 while the Russell 2000 index of small-cap stocks slipped by 2 points to end at 1,471.
1:30 PM: Dow rises as investors await Apple results; Nasdaq and S&P 500 trade in red
The Nasdaq and the S&P 500 dropped in afternoon trade Tuesday as worries about trade negotiations between the US and China put downward pressure on markets.
Technology shares fared poorly, with the S&P 500 sector losing 0.82% to hit 1,132 as investors braced for Apple’s quarterly results, expected after the market closes.
The S&P 500 shed 0.09% to 2,641 while the tech-laden Nasdaq lost 0.66% to hit 7,039. In line with the fall-out in tech stocks, big names like Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which both post quarterly earnings this week, were also trading down over 2%.
The contagion effect didn’t hit the Dow Jones Industrial Average Index, which traded 97 points higher to hit 24,624, helped by gains from Pfizer Inc, Caterpillar, United Technologies Corp and 3M.
In a potential blow to the US-China trade playbook, the US Justice department has lodged criminal charges against Meng Wanzhou, chief financial officer of the Chinese tech behemoth Huwaei. The move comes ahead of planned meetings between Chinese Vice Premier Liu He and US officials later this week.
Investors are also bracing for further details of the direction of monetary policy following the conclusion of the Federal Reserve’s meeting tomorrow.
In other news, small-cap stocks held steady, with the Russell 2000 index gaining 1.13 points to hit 1,474.
Up in Canada, Toronto’s TSX also bucked the trend to add 107 points and reach 15,486, pushed up by financial, energy and materials stocks.
10:00 AM: US stocks post mixed open as investors eye corporate earnings, news on US-China trade talks
US stocks were mixed at the open Tuesday as investors waited for a host of quarterly reports from some of the biggest names in the S&P 500. The markets were also looking for more visibility into US-China trade talks, and the Federal Open Market Committee’s latest policy decision.
The Dow Jones Industrial Average gained 115.45 points or 0.47% to 24,643.67, led higher by Pfizer, Caterpillar and United Technologies.
The S&P 500 gained 0.18% to 2,648.67 led higher by Xerox Corp, Corning Inc and Harris Corp.
The Nasdaq Composite index plunged into the red, hovering around 7,079.34 led lower by Verizon, Microsoft and Home Depot.
Elsewhere, the Russell 2000 index of small-cap stocks also languished in the red hovering around 1,473.45.
7:15 am: US stock futures point to flat open as traders await more earnings, including Apple; European benchmarks up
US stocks are seen starting flat as traders await more earnings, including from tech behemoth Apple (NASDAQ:AAPL) and Brexit is back in focus in the UK.
Wall Street shares were firmly in the hole at Monday's close, with the Dow Jones Industrial Average down nearly 209 points, and the Nasdaq off around 79 at 7,085.
The S&P 500 index finished down nearly 21 points at 2,643.
Apple results will be closely watched when the firm posts numbers after the New York bell - not least as it comes less than a month after the company issued a shock warning over the last quarter of 2018, blaming the economic slowdown in China.
Nvidia (NASDAQ:NVDA) shares tanked nearly 14% yesterday as it cut its fourth-quarter sales guidance because of deteriorating growth, especially in China.
Meanwhile, in the ongoing saga of Brexit, the UK parliament will today vote on amendments to the withdrawal agreement Prime Minister Theresa May has already struck with the EU, but which was roundly rejected by Members of Parliament (MPs).
The FTSE 100 in London has joined other European indices to be higher at the time of writing. It is up over 87 points, while the German DAX is ahead by nearly eight points.
In US futures trade, the Dow Jones is down two points; the Nasdaq is down 2.75 and the S&P 500 futures is flat.