Benchmarks closed mixed on Tuesday as investors struggled to make decision and continued to wait for another round of inflation data, scheduled for release later this week.
The Dow Jones Industrial Average (DJI) shed 30.42 points, or 0.1%, to close at 34,599.82 and the S&P 500 added 0.74 point, to close at 4,227.26. The Nasdaq Composite Index closed at 13,924.91, adding 43.19 points, or 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased nearly 4%, to close at 17.07. Advancing issues outnumbered declining ones for 1.74-to-1 ratio on the NYSE, while a 1.66-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
The S&P 500 traded as high as 4,236.74, above its record close of 4,232.60 set on May 7, before ending the session near the flatline on Tuesday. Six of the 11 major sectors of the broader index closed in the green, with consumer discretionary and energy sectors adding at least 0.9%. However, a 0.9% decline in consumer staples and utilities kept the index from moving higher.
The blue-chip Dow was dragged into the negative territory but significant decline in the majority of its members, led by 1.2% and 1% decline in The Procter & Gamble Company PG and Walgreens Boots Alliance, Inc. WBA, respectively. Both the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Nasdaq advanced for the third-straight session, led by 7.4% and 5.1% gain in shares of Sirius XM Holdings Inc. SIRI and Marvell Technology, Inc. MRVL, respectively. On the other hand, the rally in meme stocks continued on Tuesday, with Clover Health Investments, Corp. CLOV climbing 85.8%. Joining the rally were GameStop Corp. GME, Bed Bath & Beyond Inc. BBBY and Workhorse Group Inc. WKHS, which closed 7.1%, 8.4% and 11.8% higher in yesterday’s session.
Overall, the S&P 500 posted 54 new 52-week highs and one new low, while the Nasdaq Composite recorded 172 new highs and 16 new lows. A total of 11.82 billion shares were traded on Tuesday, higher than the last 20-session average of 10.75 billion.
Investors Look for Inflation Pointers
The S&P 500 and the Nasdaq closed little changed or slightly higher on Tuesday, as investors continued to look for inflation clues. The lack of clear market catalysts had made investors wait for inflation data (Consumer Price Index) scheduled to be released on June 10. Last week lesser-than-expected job additions had already jeopardized investors, making it difficult to plot the economic recovery’s path.
Additionally, yesterday the Labor Department reported that job openings in the United States jumped to 9.3 million in April from a revised 8.3 million in the prior month. However, even after having a record number of vacancies, employers are facing difficulty in finding candidates to fill them. Moreover, there is a significant number of workers are quitting the job, nearly 4 million people have left their job in April, which is double the number from a year ago. While higher pay hasn’t been enough to attract skilled workers, factors like early retirements, lack of child-care options, lingering fear of the pandemic and huge unemployment benefits are also keeping people from going back to work.
On the brighter side, the Centers for Disease Control and Prevention eased travel recommendations for 61 countries, including Japan, France, South Africa, Canada, Spain and Italy, which helped airlines stocks scale higher on Tuesday. Shares of Delta Air Lines, Inc. DAL and United Airlines Holdings, Inc. UAL closed 2.1% and 0.8% higher, respectively.
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