June 4, 2023

DS Duke

Global Business In World

S&P Loses Ground After 8 Straight Wins

2 min read
The S&P 500 closed lower Tuesday for the first time in nine sessions as investors...

The S&P 500 closed lower Tuesday for the first time in nine sessions as investors took some profits after an October rally and awaited key inflation data ahead.

The Dow Jones Industrials came off its lows of the afternoon, but remained in the red 112.34 points, to wrap up Tuesday at 36,319.98

The S&P 500 stumbled 16.45 points from Monday’s all-time high at 4,685.25.

The NASDAQ Composite lost 95.81 points to 15,886.54.

All three major averages dipped from record highs. The S&P 500 on Monday posted its 64th record close of the year and eighth straight positive day — its longest winning streak since April 2019.

PayPal on Tuesday was the biggest laggard on the S&P 500 and NASDAQ Composite, sinking 10.5{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. The digital payments company missed on quarterly revenue expectations and issued weaker-than-expected fourth-quarter and full-year guidance.

Tesla shares fell nearly 12{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, also weighing on the S&P 500 and NASDAQ Composite. The stock continued its retreat after founder Elon Musk this weekend asked in a Twitter poll whether he should sell 10{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} of his stock, with nearly 58{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} of respondents saying yes. Even after Tuesday’s pullback, Tesla is up more than 44{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} this year.

On the upside, shares of GE added 2.7{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} after the industrial giant announced it will split into three public companies focusing on aviation, healthcare and energy. The stock led gains on the S&P 500.

Wholesale prices jumped 8.6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} in October from a year ago, the hottest annual pace on record in nearly 11 years, the U.S. Labor Department said Tuesday. The October producer price index rose 0.6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} month over month, in line with the Dow Jones consensus estimate. The reading

measures the costs of final-demand manufactured goods.

Strong earnings results have also supported stocks in running to new highs. Through Tuesday morning, 459 companies in the S&P 500 have reported quarterly results, with 81{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} beating earnings estimates.

Prices for 10-year Treasurys strengthened, lowering yields to 1.44{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} from Monday’s 1.50{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. Treasury prices and yields move in opposite directions.

Oil prices added $2.45 to $84.38 U.S. a barrel.

Gold prices regained $6.50 to $1,834.50 U.S. an ounce.

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