The Dow Jones Industrial Average closed at 27,335.63 on Tuesday with a loss of 23.53 points or -0.09%. The S&P 500 closed at 3,004.04 for a loss of 10.26 points or -0.34%. The Nasdaq Composite closed at 8,222.80 for a loss of 35.39 points or -0.43%. The VIX Volatility Index was higher at 12.89 for a gain of 0.21 points or 1.66%.
Tuesday’s market movers
U.S. indexes closed lower Tuesday after investors received some key earnings reports to start the second-quarter earnings season. In the financial and banking sector, JPMorgan (JPM, Financial), Goldman Sachs (GS, Financial) and Wells Fargo (WFC, Financial) released earnings. In the health care sector, Johnson & Johnson (JNJ, Financial) released its earnings. Below is a breakdown of the day’s top earnings releases:
- JPMorgan: Beat on revenue. Earnings per share beat by 33 cents.
- Goldman Sachs: Beat on revenue. Earnings beat by 72 cents.
- Wells Fargo: Beat on revenue. Earnings beat by 12 cents.
- Johnson & Johnson: Beat on revenue. Earnings beat by 14 cents.
Stock values fell after indexes reached several consecutive new highs with analyst insights causing some marginal devaluation. In the S&P 500, financials were lower for the day, down 0.25%. S&P 500 health care stocks were also lower with the sector down 0.50%. Technology stocks were lower Tuesday with Apple (AAPL, Financial), Amazon (AMZN, Financial), Facebook (FB, Financial) and Alphabet (GOOGL, Financial) (GOOG, Financial) on Capital Hill testifying in antitrust hearings. Facebook’s David Marcus also testified before the Senate Banking Committee regarding Libra.
Comments from Chairman Jerome Powell also deflated valuations. Powell commented that one of the Federal Reserve’s primary inflation gauges, the Core PCE Inflation Rate, may have increased in June to 1.7% from 1.6%, though details won’t be released until the end of the month. Any increase in the inflation rate could detract from Fed actions to lower the federal funds rate as soon as July 31.
Economic reports affecting market trading included the following:
- Retail sales increased 0.4% in June. Retail sales, excluding auto sales, increased 0.4% in June. Year over year, retail sales were up 3.4% in June.
- Export and import prices were released. Export prices decreased 0.7% in June and decreased 1.6% year over year. Import prices decreased-0.9% in June and decreased 2% year over year .
- The Federal Reserve released its Industrial Production and Capacity Utilization report. Industrial production was unchanged in June and increased 1.3% year over year. Manufacturing production increased 0.4% in June and 0.4% year over year. Capacity utilization decreased to 77.9% in June from 78.1%.
- The U.S. Census Bureau reported a business inventories increase of 0.3% in May following an increase of 0.5%.
- The NAHB Housing Market Index increased to 65 in July from 64.
- The Treasury held an auction for 52-week bills at a rate of 1.915%.
- The Treasury’s International Capital report showed net capital flows of $32.9 billion in May and foreign bond investment of -$33.8 billion in May.
In the Dow Jones Industrial Average, the following stocks led losses for the day:
- Intel (INTC, Financial) -1.90%
- Johnson & Johnson (JNJ, Financial) -1.64%
- Exxon ( XOM) -1.49%
- Microsoft (MSFT) -1.31%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,562.00 for a gain of 0.17 points or 0.01%. The S&P 600 closed at 948.23 for a gain of 1.27 points or 0.13%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,069.96 for a loss of 11.44 points or -0.11%. The Dow Jones U.S. Small-Cap Value Index closed at 9,538.08 for a gain of 21.71 points or 0.23%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,951.83 for a gain of 0.47 points or 0.024%; the S&P 100 at 1,328.17 for a loss of -5.07 points or -0.38%; the Nasdaq 100 at 7,927.08 for a loss of 39.85 points or -0.50%; the Russell 3000 at 1,765.00 for a loss of 5.42 points or -0.31%; the Russell 1000 at 1,663.79 for a loss of 5.49 points or -0.33%; the Wilshire 5000 at 30,776.38 for a loss of 96.94 points or -0.31%; and the Dow Jones U.S. Select Dividend Index at 720.89 for a loss of 1.21 points or -0.17%.
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