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S&P 500 Snaps Winning Streak in Broad-Based Decline
09-Apr-19 16:25 ET
Dow -190.44 at 26150.58, Nasdaq -44.61 at 7909.27, S&P -17.57 at 2878.20

https://www.briefing.com/investor/markets/stock-market-update/2019/4/9/s-and-p-500-snaps-winning-streak-in-broadbased-decline.htm

[BRIEFING.COM] The S&P 500 lost 0.6% on Tuesday, as negative macroeconomic headlines and a bit of corporate news fostered some broad-based profit taking. Tuesday's decline snapped an eight-session winning streak for the benchmark index.

The Dow Jones Industrial Average lost 0.7%, the Nasdaq Composite lost 0.6%, and the Russell 2000 lost 1.2%.

The stock market began the day with some discouraging news pertaining to trade and growth: (1) The White House proposed tariffs on $11 billion of EU products in response to the subsidies the EU provides Airbus and (2) the International Monetary Fund (IMF) lowered its world growth forecast for 2019 to 3.3% from the 3.5% growth it forecast in January.

Although the tariff amount was not substantial and the growth cut was not surprising, they did provide investors with excuses to take some profits. The broader market attempted to rebound, but the comeback effort was derailed after shares of Apple (AAPL 199.50, -0.60, -0.3%) rolled over into negative territory. AAPL had risen for nine consecutive days prior to today's decline.

The S&P 500 industrials (-1.4%) and financial (-0.9%) sectors were added weights for the market following some corporate developments.

Bank stocks were particularly weak after Bank of America (BAC 28.89, -0.28, -1.0%) announced it will increase its minimum wage to $17 per hour on May 1, followed by incremental increases to $20 per hour by 2021. The wage increase raised some concerns about other banks feeling pressured to do the same and its subsequent impact on their profit-margins. The SPDR S&P Bank ETF (KBE 43.13, -0.75) lost 1.7%.

American Airlines (AAL 33.31, -0.57, -1.7%) and Pentair (PNR 39.13, -6.13, -13.5%), meanwhile, both lowered their first quarter expectations with Pentair also slashing its fiscal 2019 outlook. AAL finished well off its session low (-3.8%), though, as the company only reduced the top end of its unit revenue growth to 1.0% from 2.0%.

U.S. Treasuries saw increased buying interest following the IMF growth cut for 2019. The 2-yr yield and the 10-yr yield decreased two basis points each to 2.34% and 2.50%, respectively. The U.S. Dollar Index finished flat at 97.01. WTI crude lost 0.5% to $64.06/bbl.

Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for March and the JOLTS - Job Openings report for February:

The NFIB Small Business Optimism Index for March ticked higher to 101.8 from the prior month's reading of 101.7.
The February Job Openings and Labor Turnover Survey showed that job openings decreased to 7.087 million from a revised 7.625 million (from 7.581 million) in January.

Looking ahead, investors will receive the Consumer Price Index for March, the minutes from the FOMC March meeting, the weekly MBA Mortgage Applications Index, and the Treasury Budget for March on Wednesday.

Nasdaq Composite +19.2% YTD
Russell 2000 +15.7% YTD
S&P 500 +14.8% YTD
Dow Jones Industrial Average +12.1% YTD