The DJIA was above water for awhile this afternoon, but tucked down below the flatline before the close
4 pm: S&P 500 snaps six-day streak
The Dow closed down 10 points, less than 0.1%, at 31,376 after briefly flirting with positive territory Tuesday afternoon. The Nasdaq Composite, meanwhile, picked up 20 points, 0.1%, to 14,008, and the S&P 500 fell 4 points, 0.1%, to 3,911.
The session broke a six-day winning streak for the S&P.
The small-cap Russell 2000 fared better, rising 0.4% to another record close of 2,298.
12:15 pm: Nasdaq the lone index above water
The Dow recovered somewhat from a rough open and was down 18 points, less than 0.1%, at midday. The S&P 500 was down just 3 points, less than 0.1%, while the Nasdaq Composite improved 35 points, 0.3%, to 14,023.
The Dow Jones and the S&P 500 are a touch lower today as the indices have retreated from the record highs that were registered yesterday,” CMC Markets UK analyst David Madden wrote Tuesday. “US stocks have enjoyed a bullish run recently but it now appears that some profit takers have entered the fold. The selling pressure is far from strong as traders haven’t forgotten about the proposed spending plan from the Biden government.”
10:10 am: Proactive North America headlines:
Tocvan Ventures Corp () (FRA:TV3) says maiden drill program at Pilar project shows encouraging mineralization and potential for expansion
LiteLink Technologies Inc () (OTCMKTS:LLNKD) (FRA:C0B:FF) completes previously announced private placement for gross proceeds of C$1,005,000
() () (FRA:A1PA) posts fiscal third quarter results as strategic review continues
Wellness Inc () (OTCMKTS:CBDHF) (FRA:8OO) CMO Ola Lessard becomes first two-term president of advocacy group US Hemp Roundtable
Inc () (OTC:EXROF) (FRA:1O2) bolsters partnership with SEA Electric to advance its battery control system
Genprex Inc () announces $25 million registered direct offering priced at-the-market
() engages ex-Eli Lilly executive William Smith III to design and build its rare earth and critical mineral purification facilities
Corp () () makes two key corporate appointments to help advance its Iron Creek copper-cobalt project in Idaho
(NYSEAMERICAN:MLSS) signs distribution deals with Atlanta Dental and Nashville Dental for its Wand Single Tooth Anesthesia System
Esports Entertainment Group Group Inc () (FRA:40Y1) files for a gaming license in New Jersey
9:40 am: Wall Street starts lower
The main Wall Street indices slipped into the negative on Tuesday morning as optimism over another round of US stimulus faded among traders.
Sentiment may also have been dented by the National Federation of Independent Business (NFIB) small business optimism index reading for January, which was down to 95.0 from December’s 95.9 and below the 97.0 the market had been expecting.
Meanwhile, shares in pharma group Eli Lilly & Co () fell 1.3% to US$203.15 in early deals after the company announced its CFO Josh Smiley has resigned after the firm was made aware of what it said were “allegations of an inappropriate personal relationship” between Smiley and an employee.
8:00 am: Wall Street set to open lower
US indices are expected to retreat from Monday’s highs as the boost from president Biden‘s fiscal stimulus package begins to fade.
Spread betting quotes suggest that the Dow Jones Industrial Average will shed 72 points at 31,314 while the S&P 500 is tipped to ease 5 points to 3,911. The NASDAQ Composite is seen opening 326 points lower at 13,682.
“Some stimulus rally fatigue could be developing ahead of China Lunar New Year,” said Axi’s chief global market strategist, Stephen Innes.
The National Federation of Independent Business (NFIB) small business optimism index reading for January is out, with the 95.0 reading down from December’s 95.9 and below the 97.0 the market had been expecting.
“The NFIB sample has a strong Republican bias, so we’re not surprised that the headline index has plunged since the election, returning it to the level prevailing immediately before the 2016 election,” said Pantheon Macroeconomics; chief economist, Ian Shepherdson.
“The surge in Covid cases over the year-end can’t have helped, either. Most of the decline in the headline index since October has been in the expectations components, with expectations for the economy swinging to -12 from +27; sales expectations have dropped from -6 to +11; and earnings expectations have fallen to -16 from -3. Movements in the other components have been much smaller, with hiring intentions down only one point and capex plans down four points. These numbers are well down from their pre-Covid levels but the recent trends suggest that the services sector is now more or less frozen in place, waiting for the recovery when the virus is beaten,” Shepherdson said.
In company news, computer games company Take-Two Interactive Software Inc was 5% lower in screen-based trading at US$202.68 after its trading update yesterday, which was released after the end of trading.
In contrast, de Nemours Inc was a shade higher – up 0.5% at US$76.30 – after its fourth-quarter numbers, which were also released after the end of the trading day yesterday.
Four things to watch for on Tuesday:
- Notable names in the earnings diary today include telecoms group Inc (), financial giant S&P Global Inc (NYSE:SPGI) and financial services group ()
- Meanwhile, shares in cannabis group Canopy Growth Corp (NASDAQ:CGC) will be in focus after the group reported better than expected revenues but also a wider than predicted loss
- Elsewhere, pharma firm Eli Lilly & Co () is also in the spotlight after it said its chief financial officer Josh Smiley will resign after being made aware of what the company said were “allegations of an inappropriate personal relationship between Mr. Smiley and an employee”
- Bitcoin will also be back in the headlines after news of a US$1.5bn investment from () on Monday sent the cryptocurrency surging to record highs