The Dow Jones Industrial Average closed at 23,764.78 on Tuesday with a loss of 457.21 points or -1.89%. The S&P 500 closed at 2,870.12 for a loss of 60.20 points or -2.05%. The Nasdaq Composite closed at 9,002.55 for a loss of 189.79 points or -2.06 %. The VIX Volatility Index was higher at 32.17 for a gain of 4.60 points or 16.68%.
Tuesday’s market movers
U.S. stocks ended lower Tuesday. Investors received some key data reports, which caused some concern. The Consumer Price Index reported a decline of 0.8% in April with the 12-month inflation rate falling to 0.3%. The Treasury also released its April budget report, which includes stimulus spending. The budget showed a deficit of $738 billion in April and -$1.935 trillion for the trailing 12 months.
Shares of Uber (UBER) and Grubhub (GRUB) were higher after Uber announced a takeover bid. Grubhub is reportedly seeking an all-stock deal, exchanging one GRUB share for 2.15 UBER shares.
Investors were also watching reopening efforts, which continued across the nation. On Capital Hill, Dr. Anthony Fauci and other U.S. health officials testified on reopening before the Senate. Fauci commented that the U.S. needs more testing availability.
In crisis mode, the Federal Reserve also announced it would be buying corporate bond exchange-traded funds to offer more help for the credit markets. Purchases will be made from the Secondary Market Corporate Credit Facility.
On the earnings calendar
- Cara (CARA, Financial): Reported earnings Monday evening. Revenue of $8.1 million increased 84.1% year over year and beat estimates by $3.39 million. A first-quarter GAAP loss of 62 cents per share beat estimates by 1 cent.
- Tilray (TLRY, Financial): Also reported Monday evening. Revenue of $52.1 million increased 126.1% year over year and beat estimates by $2.45 million. A first-quarter GAAP loss of $1.73 missed estimates by $1.21.
- Inspiremd (NSPR) gained 16.23% Tuesday after its earnings per share beat estimates by 20 cents.
- Celsius Holdings (CELH) gained 14.26% after its earnings per share beat estimates by 2 cents.
Economic reports affecting market trading included the following:
- The NFIB Business Optimism Index decreased to 90.9 in April from 96.4.
- The Consumer Price Index decreased 0.8% in April following a decrease of 0.4%. Year over year, the Consumer Price Index has a gain of 0.3%, down from 1.5%.
- The Core Consumer Price Index excluding food and energy decreased 0.4% in April following a decrease of 0.1%. Year over year, the Core Consumer Price Index had an gain of 1.4%, down from 2.1%.
- The Treasury held auctions for 119-day bills at a rate of 0.145%, 42-day bills at a rate of 0.110% and 10-year notes at a rate of 0.700%. The 10-year Treasury ended with a yield of 0.672%.
- The Treasury’s April Monthly Budget Statement showed a deficit of $738 billion, bringing the 12-month deficit to $1.935 trillion.
In the S&P 500 real estate and industrials led losses for the day. In the S&P 100, the following stocks led losses and gains:
- BlackRock (BLK, Financial) -8.37%
- Honeywell International (HON, Financial) -4.79%
- Raytheon (RTN, Financial) -4.47%
- U.S. Bancorp (USB, Financial) -4.3%
- MetLife (MET, Financial) -3.87%
- Bank of New York Mellon (BK, Financial) -3.82%
- AbbVie (ABBV, Financial) +3.08%
- Bristol-Myers Squibb (BMY, Financial) +1.37%
- Duke Energy (DUK, Financial) +0.55%
- Walmart (WMT, Financial) +0.54%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,275.54 for a loss of 45.70 points or -3.46%. The S&P 600 closed at 728.74 for a loss of 28.02 points or -3.70%. The Dow Jones U.S. Small-Cap Growth Index closed at 8,846.63 for a loss of 288.75 points or -3.16%. The Dow Jones U.S. Small-Cap Value Index closed at 6,037.33 for a loss of 299.98 points or -4.73%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,604.80 for a loss of 58.68 points or -3.53%; the S&P 100 at 1,322.87 for a loss of 25.54 points or -1.89%; the Nasdaq 100 at 9,112.45 for a loss of 186.48 points or -2.01%; the Russell 3000 at 1,662.81 for a loss of 37.23 points or -2.19%; the Russell 1000 at 1,582.12 for a loss of 34.13 points or -2.11%; the Wilshire 5000 at 29,057.84 for a loss of 648.95 points or -2.18%; and the Dow Jones U.S. Select Dividend Index at 548.21 for a loss of 11.86 points or -2.12%.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
