Stock market snaps rebound rally; all sectors lose ground
20-Aug-19 16:25 ET
Dow -173.35 at 25962.42, Nasdaq -54.25 at 7948.58, S&P -23.14 at 2900.51
[BRIEFING.COM] The stock market retraced some of its recent gains on Tuesday, as buyers appeared weary after a sharp two-day rally. The S&P 500 fell 0.8%, which was comparable to the declines in the Dow Jones Industrial Average (-0.7%), Nasdaq Composite (-0.7%), and Russell 2000 (-0.7%)
The day began modestly lower following lackluster performances overseas, and stocks quickly fell to session lows on no specific news catalysts. After a brief intraday rally to the flat line, the S&P 500 and the other major averages steadily returned to those session lows by late afternoon. Selling accelerated into the close, stamping a sour note to the session.
All 11 S&P 500 sectors finished in negative territory, with the financials (-1.4%), materials (-1.2%), and consumer staples (-1.2%) sectors losing over 1.0%. The consumer discretionary sector (-0.1%) finished just below its flat line, supported by the positive reaction to Home Depot's (HD 217.09, +9.14, +4.4%) earnings results.
In other earnings news, fellow retailers Kohl's (KSS 44.88, -3.32, -6.9%) and TJX Companies (TJX 51.51, -0.04, -0.1%) finished mixed following their reports. Kohl's fell despite beating top and bottom-line estimates. TJX finished little changed despite missing revenue estimates and guiding Q3 EPS below consensus.
Netflix (NFLX 298.99, -10.39, -3.4%) shares fell over 3%, likely pressured by a Bloomberg report that indicated Apple (AAPL 210.36, +0.01, unch) plans to launch its streaming service in November for $9.99/month.
Separately, President Trump said his administration was looking at ways to reduce various taxes to help stimulate growth despite repeated claims on how the good the economy is doing. Market reaction was muted, as it remained unclear if discussions would lead to proposals that Congress would approve.
Mr. Trump also dismissed recessionary fears, which appeared to linger in the U.S. Treasury market in the form of some curve-flattening action. The 2-yr yield declined two basis points to 1.51%, and the 10-yr yield declined four basis points to 1.56%. The U.S. Dollar Index declined 0.2% to 98.15. WTI crude declined 0.1% to $56.18/bbl.
Investors did not receive any economic data on Tuesday. Tomorrow, investors will receive Existing Homes Sales for July, the FOMC Minutes from the July meeting, and the weekly MBA Mortgage Applications Index.
Nasdaq Composite +19.8% YTD
S&P 500 +15.7% YTD
Dow Jones Industrial Average +11.3% YTD
Russell 2000 +11.1% YTD
Market Snapshot
Dow 25962.42 -173.35 (-0.66%)
Nasdaq 7948.58 -54.25 (-0.68%)
SP 500 2900.51 -23.14 (-0.79%)
10-yr Note +6/32 1.550
NYSE Adv 1093 Dec 1747 Vol 703.0 mln
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