The Dow Jones Industrial Average closed at 29,196.04 on Tuesday with a loss of 152.06 points or -0.52%. The S&P 500 closed at 3,320.79 for a loss of 8.83 points or -0.27%. The Nasdaq Composite closed at 9,370.81 for a loss of 18.14 points or -0.19%. The VIX Volatility Index was higher at 12.85 for a gain of 0.75 points or 6.20%.
Tuesday’s market movers
U.S. indexes followed global markets lower Tuesday after an outbreak of pneumonia in China worried investors. The outbreak is of especially high risk as the Chinese Lunar New Year holiday approaches with increased traveling in the country and across borders.
Earnings releases also made headlines as the second big week of fourth-quarter earnings begins. Netflix and IBM reported after the closing bell.
- Netflix (NFLX, Financial): Revenue of $5.47 billion increased 30.5% year over year and beat estimates by $20 million. Fourth-quarter earnings per share was $1.30.
- IBM (IBM, Financial): Revenue of $21.78 billion increased 0.1% year over year and beat estimates by $160 million. Fourth-quarter GAAP earnings of $4.11 per share beat estimates by 3 cents and non-GAAP EPS of $4.71 beat estimates by 2 cents.
There were no major economic reports on the calendar Tuesday. The Treasury held auctions for three-month bills at a rate of 1.53% and six-month bills at a rate of 1.52%.
In other news:
- The annual Davos Conference got under way, beginning with a speech from President Trump touting his "America First" approach, also encouraging other countries to follow his lead.
- The impeachment trial began in the Senate with an afternoon discussion on the terms of the debate.
- The Treasury secretary commented that a repeal of past tariffs on China is still up for discussion.
In the S&P 500, energy and industrials led losses. In the Dow Jones Industrial Average, the following stocks led losses:
- Boeing (BA, Financial) -3.33%
- Chevron (CVX, Financial) -1.96%
- Goldman Sachs (GS, Financial) -1.51%
- Exxon (XOM, Financial) -1.43%
- Dow Inc. (DOW, Financial) -1.39%
- Caterpillar (CAT, Financial) -1.31%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,685.90 for a loss of 13.74 points or -0.81%. The S&P 600 closed at 1,029.72 for a loss of 9.56 points or -0.92%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,863.69 for a loss of 76.48 points or -0.70%. The Dow Jones U.S. Small-Cap Value Index closed at 9,892.30 for a loss of 101.06 points or -1.01%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,082.93 for a loss of 12.62 points or -0.60%; the S&P 100 at 1,485.68 for a loss of 3.94 points or -0.26%; the Nasdaq 100 at 9,166.63 for a loss of 7.10 points or -0.077%; the Russell 3000 at 1,944.33 for a loss of 5.54 points or -0.28%; the Russell 1000 at 1,835.45 for a loss of 4.56 points or -0.25%; the Wilshire 5000 at 33,936.77 for a loss of 92.05 points or -0.27%; and the Dow Jones U.S. Select Dividend Index at 763.64 for a loss of 3.31 points or -0.43%.
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