Stocks are mostly lower in early trading on Wall Street Tuesday as a three-week rally that brought indexes to all-time highs loses momentum. Netflix and other companies reported disappointing results and the International Monetary Fund predicted a slowdown in the United Kingdom following its vote to leave the European Union.
KEEPING SCORE: The Standard & Poor’s 500 index was down 6 points, or 0.3 percent, to 2,161 at 10:15 a.m. Eastern time. The Dow Jones industrial average edged up 11 points, or 0.1 percent, to 18,545. The Nasdaq composite fell 18, or 0.3 percent, to 5,038.
THE RUN THAT WAS: The S&P 500 had surged just over 8 percent since June 27, when stocks hit a bottom following the United Kingdom’s vote. Fears have largely dissipated since then that Britain’s departure would destabilize the global economy, however questions still remain.
The IMF trimmed its forecast for global economic growth this year to 3.1 percent from 3.2 percent, mostly due to anticipated slowdowns in Britain and other advanced economies as a result of the “Brexit” vote.
GLOBAL MARKETS: Japan’s Nikkei 225 index jumped 1.4 percent on a weaker yen and a Pokemon-powered rally in Nintendo shares. France’s CAC 40 was down 0.7 percent, and Germany’s DAX shed 0.8 percent.
NO CHILL: Netflix was the worst-performing stock in the S&P 500, down $13.08, or 13.3 percent, to $85.73. It added fewer subscribers last quarter than it expected, which it blamed on customers leaving before a rate-freeze on their accounts expired.
HEALTHY SPOT: Health care rose 0.4 percent, making it one of just two sectors out of the 10 that make up the S&P 500 to gain. The sector benefited from a stronger-than-expected earnings report from Johnson & Johnson, which rose $1.84, or 1.5 percent, to $124.98. The company also raised its forecast for full-year profits.
SAFETY TRADE: The usual spots that investors have run to when feeling scared were up, but only modestly. The price of gold rose $1.90, or 0.1 percent, to $1,331.20 per ounce. Treasury prices also inched higher. The yield on the 10-year note, which moves in the opposite direction of its price, fell to 1.57 percent from 1.59 percent late Monday.
GLOBAL OUTLOOK: Investors are anticipating a slew of events this week that they’ll assess to get a better read on the health of the world economy and what it might mean for stock markets. The European Central Bank’s policy rate decision is Thursday, and while no extra stimulus is expected, the bank’s views about the economy could create volatility in markets.
ENERGY: The price of crude oil fell 22 cents, or 0.5 percent, to $45.03 per barrel. Brent crude fell 19 cents, or 0.4 percent, to $46.77.
CURRENCIES: The dollar rose against most of its major rivals. It climbed to 106.40 Japanese yen from 106.12 late Monday. The euro fell to $1.1021 from $1.1068, and the British pound fell to $1.3120 from $1.3260.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info