Wall Street indexes registered minimal downward movements as the depreciation of technology stocks darkened investor sentiment.
The blue-chip index Dow Jones Industrial Average fell by 14.38 points, after rising by 185.99 points earlier in the session. The benchmark ended the trading session at 26,048.51 points, The broader S&P 500 and the technology Nasdaq Composite fell by 0.03% and 0.01%, respectively.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 0.31% to 15.99.
Dow close to record a 6-day winning streak, while S&P 500 was 2.4% below its highest levels in April.
At the beginning of the trading session, the indexes rose as investors were still feeling optimistic about the US-Mexico deal late last week. The mood was positive because of the hopes for the decrease in benchmark interest rates by the Federal Reserve.
President Donald Trump said on Sunday that the 5% tariff for Mexican imports would be postponed indefinitely. He also said he has full confidence in Mexico’s ability to cope with Central American migration.
Market expectations for lower rates by July sat around 78%, according to the CME Group’s FedWatch tool. Investors are also pricing in a 97.1% chance of lower rates by December, according to FedWatch. These forecasts have been rising amid weakening US economic data. Monthly jobs growth slowed to 75,000 in May, missing an estimate of 180,000. Meanwhile, manufacturing activity in the US grew at its slowest pace since 2016.
In economic news, the US Bureau of Labor Statistics said that the Producer Price Index ticked up 0.1% on a seasonally adjusted basis in May, matching expectations. This rise follows a 0.2% increase in April. Since inflation doesn’t appear to a threat, economists believe this could increase the likelihood of a rate cut from the US central bank should the economy get any weaker.
Stocks are on pace for sharp monthly gains after a strong decline in May. The major indexes are all up nearly 5%. In May, the Dow and S&P 500 dropped more than 6% each while the Nasdaq slid nearly 8%.
Corporate stocks performance
The technology sector of S&P 500 reported a 0.2% drop, wiping out its earlier gain of 1.1%. The shares of Advanced Micro Devices and Symantec fell by about 3%.
Apple shares rose about 1.2% after the tech giant’s key iPhone assembler said it can make Apple’s flagship product outside of China, easing concerns that tariffs might disrupt its supply chain.
Shares of Intel rose slightly by 0.05% after the chipmaker agreed to buy startup Barefoot Networks in a bid to keep up with Broadcom in cloud computing technology offerings.
The stocks of Tesla rose nearly 2% ahead of the company’s annual meeting following a bullish call from Baird analyst Ben Kallo who believes that the selloff the electric carmaker experienced before its rally last week was overblown. The CEO Elon Musk will lead Tesla’s annual meeting Tuesday in Mountain View, California, at 5:30 p.m. ET.
United Technologies and Walt Disney were performing worst within Dow Jones, down by 3.9% and 1.4%, res[ectively.
The stocks of Boeing declined by 1.2% after the planemaker reported a 56% drop in May deliveries due in part to a decline in its formerly top-selling 737 MAX jets.
Private-equity giant Apollo Global Management LLC will acquire the online photo sharing company Shutterfly Inc in an all-cash deal worth 51 USD per share, valuing the company at 2.1 billion USD. The shares of Apollo Global edged up 0.3% and Shutterfly stock rose 0.9%.
Shares of CVS Health Corp fell 1.9% after the New York Post reported that a federal judge appears to be nearing a surprise move to block CVS’ 69 billion USD acquisition of Aetna, completed last year.
Beyond Meat Inc stock sank by 25% after J.P. Morgan analyst Ken Goldman cut his rating on the stock from overweight to neutral, citing valuation concerns. The stock has risen 265% since its May 3 initial public offering.
The top performers on the S&P 500 were Signet Jewelers Ltd (+3.72%), Albemarle Corp (+3.52%) and Schlumberger NV (+3.44%), while on the flipside were Raytheon Company (-5.11%), L3 Technologies Inc (-4.39%) and Harris Corporation (-4.28%).
Corporate earnings reports
The retail chain Casey’s General Stores Inc wrapped up its fiscal year with an earnings beat. The company reported fiscal fourth-quarter earnings of 25.2 million USD, or 0.68 USD per share, on sales of 2.18 billion USD, up from 0.51 USD per share on revenue of 2.09 billion USD a year ago. Analysts on average projected earnings of 0.46 USD per share on sales of 2.12 billion USD, according to FactSet.
Optical Cable Corp reported Q2 EPS loss of 0.08 USD, versus a loss of 0.53 USD reported last year. Revenue for the quarter came in at 19 million USD, versus 26.9 million USD reported last year.