U.S. market indexes were lower on Tuesday to start the shortened trading week lower after closing higher for the week on Friday.
For the day the Dow Jones Industrial Average closed at 17,840.62 for a loss of 108.75 points or 0.61%. The Standard & Poor's 500 was also down, closing at 2,088.55 for a loss of 14.40 points or 0.68%. The Nasdaq Composite closed lower at 4,822.90 for a loss of 39.67 points or 0.82%. The VIX Volatility Index was higher at 15.73 for a gain of 0.96 points or 6.50%.
In the Dow Jones Industrial Average, stocks leading losses for the day included:
- JPMorgan (JPM, Financial) -2.84%.
- Caterpillar (CAT, Financial) -2.73%.
- Goldman Sachs (GS, Financial) -2.59%.
- American Express (AXP, Financial) -2.57%.
Few leading economic indicators were on the calendar for Tuesday as stocks closed lower with some concerns over a global and domestic recession. Economists are reporting that some aspects of the U.S. economy could see some lower growth as a result of Brexit and specifically Friday’s lower auto sales showed the U.S. economy could be slightly more affected from the broader international trade factors than previously expected.
Tuesday’s factory orders report was lower, down 1% from the previous month, which was at consensus yet below the prior month’s reading of 1.8%. Gallup also provided two reports on Tuesday, the Gallup U.S. Economic Confidence Index and the U.S. Consumer Spending Measure. The Gallup U.S. Economic Confidence Index was unchanged at -14. The U.S. Consumer Spending Measure showed the average spending level per day by the consumer at $88 which was down from $93.
Stocks and bonds were lower on Tuesday as Treasurys continued to show lower yields. For the day, the 10-year U.S. Treasury reached a new low of 1.367%. With negative yields a factor for many countries and the Bank of England likely to lower its central bank rate, it seems government debt globally may have farther to fall.
In a CNBC report Tuesday, market specialists discussed the short-term outlook for Treasury yields.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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