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U.S. stock markets closed lower on Tuesday as investors remained watchful ahead of the U.S. Federal Reserve’s two-day policy meeting which began on Tuesday. Moreover, a mixed set of economic data also dented the confidence of market participants. All the three major stock indexes closed the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.3%, closing at 34,299.33, continuing its losses for the second consecutive session. Notably, 21 components of the 30-stock index ended in red while 9 finished the day in green. Major losers of the Dow were JPMorgan Chase & Co. (JPM - Free Report) and salesforce.com, inc. (CRM - Free Report) that lost 1.5% and 1.5%, respectively. Notably, both companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 14,072.86, down 0.7%, or 101.29 points, snapping its three-day winning streak, on the back of weak performance by large-cap technology stocks. The S&P 500 fell 0.2%, closing the day at 4,246.59, reversing its gains from the previous three sessions. The Real Estate Select Sector SPDR (XLRE) and the Technology Select Sector SPDR (XLK) dipped 0.9% and 0.6%, respectively. Notably, six out of eleven sectors of the benchmark index closed in the negative zone and five in green.
The fear-gauge CBOE Volatility Index (VIX) was up 3.8% to 17.02. A total of 9.98 billion shares were traded on Tuesday, lower than the last 20-session average of 10.58 billion.
Markets Await Comments from U.S. Federal Reserve
Wall Street closed lower in Tuesday’s session as market participants remained watchful ahead of the U.S. Federal Reserve’s two-day policy meet that began on Tuesday. Notably, investors are awaiting comments from the Fed with regards to inflation, interest rates and the state of the economy. Nonetheless, the Fed has already stated that any surge in inflation is supposed to be transitory.
Economic Data
Investors’ sentiment received a setback in Tuesday’s session after the U.S. Census Bureau reported that retail sales declined 1.3% to $620.2 billion in May, wider than the consensus estimate of a decline of 0.7%, and compared to an upward revised estimate of a rise of 0.9% in April, which was previously reported as unchanged.
The U.S. Bureau of Labor Statistics reported that producer price index (PPI) rose 0.8% in May, surpassing the consensus estimate of a rise of 0.5%, and compared to a rise of 0.6% in April. Notably, the final demand index has risen 6.6% in the past 12 months ended May and showed the largest increase since the 12-month data were calculated for the first time in November 2010.
Moreover, core PPI, which excludes foods and energy rose 1.1% in May, outpacing the consensus estimate of an increase of 0.5%, and compared to a rise of 1% in April.
The U.S. Federal Reserve reported that the U.S. industrial production rose 0.8% in May, surpassing the consensus estimate of a rise of 0.6%, and compared to an increase of 0.1% in April which was revised downward from 0.7% reported earlier. Per the report, the index for mining rose 1.2% in May, compared to a revised fall of 0.4% in April. Moreover, the index for utilities rose 0.2% in May, compared to a revised increase of 1.9% in April. Meanwhile, manufacturing production rose 0.9% in May compared to a revised fall of 0.1% in April.
Meanwhile, capacity utilization was reported at 75.2% in May, outpacing the consensus estimate of 75.1%, and higher than 74.6% reported in April which was revised downward from 74.9% reported earlier.
The U.S. Census Bureau reported that business inventories for the month of April fell 0.2%, compared to the consensus estimate of flat, and also compared to the rise 0.2% in March which was revised downward from 0.3% reported earlier.
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Stock Market News for Jun 16, 2021
U.S. stock markets closed lower on Tuesday as investors remained watchful ahead of the U.S. Federal Reserve’s two-day policy meeting which began on Tuesday. Moreover, a mixed set of economic data also dented the confidence of market participants. All the three major stock indexes closed the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.3%, closing at 34,299.33, continuing its losses for the second consecutive session. Notably, 21 components of the 30-stock index ended in red while 9 finished the day in green. Major losers of the Dow were JPMorgan Chase & Co. (JPM - Free Report) and salesforce.com, inc. (CRM - Free Report) that lost 1.5% and 1.5%, respectively. Notably, both companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 14,072.86, down 0.7%, or 101.29 points, snapping its three-day winning streak, on the back of weak performance by large-cap technology stocks. The S&P 500 fell 0.2%, closing the day at 4,246.59, reversing its gains from the previous three sessions. The Real Estate Select Sector SPDR (XLRE) and the Technology Select Sector SPDR (XLK) dipped 0.9% and 0.6%, respectively. Notably, six out of eleven sectors of the benchmark index closed in the negative zone and five in green.
The fear-gauge CBOE Volatility Index (VIX) was up 3.8% to 17.02. A total of 9.98 billion shares were traded on Tuesday, lower than the last 20-session average of 10.58 billion.
Markets Await Comments from U.S. Federal Reserve
Wall Street closed lower in Tuesday’s session as market participants remained watchful ahead of the U.S. Federal Reserve’s two-day policy meet that began on Tuesday. Notably, investors are awaiting comments from the Fed with regards to inflation, interest rates and the state of the economy. Nonetheless, the Fed has already stated that any surge in inflation is supposed to be transitory.
Economic Data
Investors’ sentiment received a setback in Tuesday’s session after the U.S. Census Bureau reported that retail sales declined 1.3% to $620.2 billion in May, wider than the consensus estimate of a decline of 0.7%, and compared to an upward revised estimate of a rise of 0.9% in April, which was previously reported as unchanged.
The U.S. Bureau of Labor Statistics reported that producer price index (PPI) rose 0.8% in May, surpassing the consensus estimate of a rise of 0.5%, and compared to a rise of 0.6% in April. Notably, the final demand index has risen 6.6% in the past 12 months ended May and showed the largest increase since the 12-month data were calculated for the first time in November 2010.
Moreover, core PPI, which excludes foods and energy rose 1.1% in May, outpacing the consensus estimate of an increase of 0.5%, and compared to a rise of 1% in April.
The U.S. Federal Reserve reported that the U.S. industrial production rose 0.8% in May, surpassing the consensus estimate of a rise of 0.6%, and compared to an increase of 0.1% in April which was revised downward from 0.7% reported earlier. Per the report, the index for mining rose 1.2% in May, compared to a revised fall of 0.4% in April. Moreover, the index for utilities rose 0.2% in May, compared to a revised increase of 1.9% in April. Meanwhile, manufacturing production rose 0.9% in May compared to a revised fall of 0.1% in April.
Meanwhile, capacity utilization was reported at 75.2% in May, outpacing the consensus estimate of 75.1%, and higher than 74.6% reported in April which was revised downward from 74.9% reported earlier.
The U.S. Census Bureau reported that business inventories for the month of April fell 0.2%, compared to the consensus estimate of flat, and also compared to the rise 0.2% in March which was revised downward from 0.3% reported earlier.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create ""the world's first trillionaires."" Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>