How major USA stock indexes fared Tuesday
- Author: Rita Burton Apr 29, 2018,
Apr 29, 2018, 13:30
- US stocks are sinking Tuesday as investors fear that rising oil prices and other costs will slow down growth in company profits. The maker of Maytag and KitchenAid products rose 4.4 percent to $156.93.
The Dow opened slightly higher on Wednesday, boosted by Boeing's 3.4 per cent jump after strong results, while the Nasdaq and S&P 500 were little changed as U.S. bond yields climbed above the 3 per cent level. Specifically, futures on the blue-chip index are trading above fair value this morning, thanks to a positive earnings reaction for Boeing (BA) - though pre-market upside is modest as the 10-year Treasury yield holds above the key 3% level. YIELDS QUESTION: Bond prices slipped again Tuesday. On Wednesday Goodyear Tire & Rubber said higher raw materials costs and weaker demand hurt its business in the first quarter.
Facebook fell 4 percent to $159.27 and Microsoft skidded 2.4 percent to $93.10.
The recent slide down in equities is occurring even though a string of strong corporate earnings.
Mining and manufacturing company 3M, another Dow indicator, saw its stock drop 7 percent after lowering its full-year profit forecast.
Diversified industrial manufacturer 3M was the biggest drag on the Dow Jones Industrial Average.
"We're seeing some of the earnings numbers have come out, and after further review, (investors) realized where all this revenue was coming from", said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"I think what investors had hoped the benefit from taxes would get redeployed back into the company".More news: Prices stay strong but just off recent highs
Industrial and basic materials companies and technology firms took some of the worst losses.
"They're kind of pulling each other down", said Nolte.
The index fell a total of 424.56 points or 1.74 percent by closing to 24,024.13, dropping a total of 751.21 points from its session high following a 131-point increase to open trading.
Shares of Lockheed Martin Corp, the Pentagon's largest weapons supplier, dropped per cent.
Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year. USA market indexes were mixed with losses in the Nasdaq.
Oil rose above $75 a barrel to its highest level since November 2014, but then reversed course as U.S. President Donald Trump and French President Emmanuel Macron pledged to try to resolve U.S.
Another market favorite, online retailer Amazon, shed 3.8 percent to $1,460.09.
Volume on U.S. exchanges was 7.22 billion shares, compared to the 6.80 billion average for the full session over the last 20 trading days.