The Dow Jones Industrial Average closed at 34,299.33 on Tuesday with a loss of 94.42 points or -0.27%. The S&P 500 closed at 4,246.59 for a loss of 8.56 points or -0.20%. The Nasdaq Composite closed at 14,072.86 for a loss of 101.29 points or -0.71%. The VIX Volatility Index was higher at 17.02 for a gain of 0.63 points or 3.84%.
Tuesday’s Market Movers
U.S. stocks were lower Tuesday after record highs from the S&P 500 and Nasdaq on Monday. The Federal Open Market Committee began its two-day June policy meeting. Investors will be watching Wednesday's conclusion for Fed officials’ insights on inflation, the economy, and any asset tapering plans.
From the economic calendar, retail sales and the Producer Price Index were top headlines.
- Retail sales decreased -1.3% in May, following an increase of 0.9% and worse than the estimate of -0.3%.
- Retail sales excluding autos decreased -0.7%.
- Year over year, retail sales had an increase of 28.1% following an increase of 53.4%.
- The Producer Price Index (PPI) increased 0.8% in May following an increase of 0.6% and higher than the estimate of 0.7%.
- Year over year, the PPI had an increase of 6.6%, following an increase of 6.2% and higher than the estimate of 6.4%.
- The Core PPI increased 7% in May following an increase of 0.7% and inline with the estimate of 0.7%.
- Year over year, the Core PPI had an increase of 4.8% following an increase of 4.1% and just below the estimate of 4.9%.
The down month for retail sales and somewhat high PPI numbers raised some concerns for investors. Covid data also showed the U.S. has reached over 600,000 deaths.
In other news:
- Oil prices were higher on Covid recovery demand expectations. The S&P 500 Energy ETF (XLE) gained 1.9%.
- In the energy sector a federal judge said the Biden Administration could not stop new oil and gas leases.
- Exxon (XOM, Financial) 3.64%
- The House Financial Services Committee held a hearing on central bank digital currencies.
- Business inventories decreased -0.2% in April following an increase of 0.2%.
- The New York Empire State Manufacturing Index decreased to 17.4 in June from 24.3.
- Industrial production increased 0.8% in May with a year over year increase of 16.3%. Manufacturing production increased 0.9% with a year over year increase of 18.3%. Capacity utilization increased to 75.2% from 74.6%.
- The NAHB Housing Market Index decreased to 81 in June from 83.
- The Treasury held auctions for 52-week bills at a rate of 070%, 42-day bills at a rate of 0.015%, and 20-year bonds at a rate of 2.120%.
- The April Treasury International Capital report was released. Overall net capital flows were $101.2 billion in April, foreign bond investment was $49.6 billion, and net long-term Treasury international capital flows were $100.7 billion.
- Oracle (ORCL, Financial) released earnings. Revenue of $11.23 billion increased 7.6% year over year and beat estimates by $190 million. FQ4 GAAP EPS of $1.37 beat estimates by $0.32 and non-GAAP EPS of $1.54 beat estimates by $0.21.
- Innovative Industrial Properties (IIPR, Financial) increased its dividend to $1.40 per share.
- Boeing (BA, Financial) and Airbus (EADSY, Financial) both gained with the announcement of a trade truce.
- Walgreens (WBA, Financial) says it will provide same day delivery across the U.S. through a partnership with Uber.
Small-Cap Stocks
In small-caps, the Russell 2000 closed at 2,320.07 for a loss of 6.07 points or -0.26%. The S&P 600 closed at 1,390.45 for a gain of 3.13 points or 0.23%. The Dow Jones U.S. Small-Cap Growth Index closed at 15,205.98 for a loss of 109.82 points or -0.72%. The Dow Jones U.S. Small-Cap Value Index closed at 11,609.61 for a gain of 43.66 points or 0.38%.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,724.09 for a loss of 2.33 points or -0.085%; the S&P 100 at 1,931.18 for a loss of 6.03 points or -0.31%; the Nasdaq 100 at 14,030.41 for a loss of 97.79 points or -0.69%; the Russell 3000 at 2,539.86 for a loss of 6.93 points or -0.27%; the Russell 1000 at 2,389.30 for a loss of 6.53 points or -0.27%; the Wilshire 5000 at 44,443.18 for a loss of 117.61 points or -0.26%; the and the Dow Jones US Select Dividend Index at 864.27 for a gain of 3.82 points or 0.44%.
