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On Tuesday, the S&P 500 Index ($SPX) (SPY) fell -0.28%, the Dow Jones Industrial Average ($DOWI) (DIA) fell -0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell -0.28%. The transaction was completed. -0.36%.
Stock indexes on Tuesday gave up their early gains and recorded moderate declines. Nvidia fell more than -2%, triggering a decline in semiconductor stocks and weighing on the overall market. U.S. economic news on Tuesday was mixed on stock markets as new orders for capital goods rose above expectations in February, while U.S. consumer confidence fell unexpectedly.
Stocks initially rose on Tuesday on some positive company news. McCormick reported better-than-expected first-quarter adjusted EPS, closing at more than +10%. Seagate also closed up more than 7% after Morgan Stanley upgraded the stock from equal weight to overweight. Additionally, Tesla closed more than +2% after Italian newspaper Il Sole 24 Ore reported that the Italian Ministry of Industry had contacted Tesla about the possibility of producing electric trucks.
New orders for capital goods (aircraft and parts, etc.) in the US in February, which is a representative measure of corporate capital goods spending, increased by 0.7% month-on-month, exceeding expectations of +0.1% month-on-month.
The US S&P CoreLogic Composite 20 Home Price Index rose 6.03% year-on-year in January, marking the first significant increase in 14 months.
The Conference Board’s U.S. Consumer Confidence Index unexpectedly fell -0.1 in March to a four-month low of 104.7, below expectations for a rise to 107.0.
The March Richmond Fed Manufacturing Business Index unexpectedly fell from -6 to -11, weaker than the expected unchanged -5.
The market is discounting a 14% chance of a -25 basis point rate cut at the next FOMC meeting on April 30th-May 1st, and a 78% chance at the next FOMC meeting on June 11th-12th.
Overseas stock markets were mixed and calm on Tuesday. The Euro Stoxx 50 rose to a 23-year high and ended up +0.40%. China’s Shanghai Composite Stock Price recovered from a three-week low to end up +0.17%. Japan’s Nikkei stock index ended down -0.04%.
level of interest
The June 10-year T-note (ZNM24) price ended up +4 ticks on Tuesday. The yield on the 10-year T-note was -1.2 basis points, at 4.232%. June T-note prices rose modestly on Tuesday, recovering from an earlier decline as strong demand for the Treasury Department’s five-year T-note auction triggered short-covering of T-notes. The $67 billion five-year T-note auction sold for 4.235%, slightly below the 4.245% yield at the close of the 1300 ET auction, a sign of strong demand. T-Note also received support after the Conference Board’s U.S. Consumer Confidence Index unexpectedly fell.
On the downside, a better-than-expected US February capital goods report and rising US home prices were hawkish factors for Fed policy, weighing on T-notes.
European government bond yields fell on Tuesday. The yield on German 10-year federal bonds fell by 2.2 basis points to 2.350%. The UK 10-year bond yield was -1.7 basis points at 3.971%.
Germany’s April GfK consumer confidence index rose +1.4 to -27.4, exceeding expectations of -28.0.
ECB Governing Council member Müller said indicators in the coming weeks could be enough to confirm that inflation is slowing by the time ECB policymakers set borrowing costs in June.
US securities company
United Parcel Service (UPS) was the S&P 500’s top decliner, falling more than -8% after its 2026 revenue forecast fell short of analysts’ expectations. Bank of America said the company’s preliminary investor meetings had set sales goals that were higher than actual results achieved.
International Paper (IP) closed more than -6% after Sky News reported the company wanted to make a formal offer to DS Smith.
3M Company (MMM) led the Dow Jones Industrial Average’s 30 losers, closing down more than 2% following the company’s agreement to pay $6 billion to military personnel with hearing loss. Obtained participation of over 99% of claimants who used 3M combat earplugs and achieved over 99% participation. 98% threshold for deal completion.
Nvidia (NVDA) closed down more than 2%, leading to a decline in chip stocks and weighing on the overall market. GlobalFoundries (GFS) closed down -2%. Meanwhile, Broadcom (AVGO), Texas Instruments (TXN), KLA Corporation (KLAC), and Microchip Technology (MCHP) all closed down more than -1%.
Rexford Industrial Realty (REXR) announced an $840 million equity offering via Bank of America, along with $500 million of exchangeable senior notes due 2027 and $500 million of exchangeable senior notes due 2029. The company closed down more than 3% after announcing plans to sell $1 billion in exchangeable senior notes.
Matador Resources (MTDR) closed down more than 5% after announcing its intention to sell $800 million of senior unsecured notes due in 2032 in a private placement.
CSX (CSX) -1 after a container ship collides with Baltimore’s Francis Scott Key Bridge, causing the bridge to collapse and shutting down Consol Energy’s Baltimore Marine Terminal, which CSX serves More than % of businesses have closed.
Zoetis (ZTS) closed down more than 1% as the company faces an EU antitrust investigation for blocking market entry for a canine pain-relief treatment that could potentially compete with the company.
McCormick (MKC) rose more than +10% to lead the S&P 500 index gain after reporting first-quarter adjusted EPS of 63 cents, stronger than the consensus of 57 cents.
Seagate Technology Holdings (STX) closed over 7% higher after Morgan Stanley upgraded the stock from equal weight to overweight with a price target of $115.
Tesla (TSLA) closed more than +2% after Italian newspaper Il Sole 24 Ore reported that Italy’s Industry Ministry contacted the company about the possibility of producing electric trucks.
Krispy Kreme (DNUT) closed more than +39% after announcing that its donuts will be sold at McDonald’s stores across the United States.
Viking Therapeutics (VKTX) closed more than +16% after announcing results from a Phase 1 study of its oral tablet formulation of VK2735 for obesity showed weight loss after 28 days.
Praxis Precision Medicine (PRAX) closed more than +23% after reporting that 100% of patients achieved a complete response in a mid-stage trial of its experimental treatment for epilepsy patients.
Chipotle Mexican Grill (CMG) closed more than 1% after Bernstein raised its price target from $2,800 to $3,200.
Nasdaq (NDAQ) closed more than 1% higher after Goldman Sachs upgraded the stock from Neutral to Buy with a price target of $73.
Earnings report (2024/3/27)
Carnival Corp (CCL), Chemours Co/The (CC), Cintas Corp (CTAS), Jefferies Financial Group Inc (JEF), and RH (RH).
More stock market news from Barchart
On the date of publication, Rich Asplund did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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