We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Benchmarks ended in the red on Tuesday after recent political tensions weighed on sentiment despite strong quarterly earnings results. Better-than-expected fourth-quarter earnings results and updated 2018 earnings projection from UnitedHealth led key U.S. indexes to reach new highs initially.
However, all the three indexes fell at the close with the Dow posting its biggest reversal in a day since Feb. 10, 2016 after briefly moving above the 26,000 mark for the first time. Additionally, oil prices fell after investors decided to lock in gains, which in turn weighed on the energy sector. Markets were closed on Monday due to Martin Luther King Jr. Day.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) decreased 7.68 points to close at 25,792.86. The S&P 500 fell 0.4% to close at 2,776.42. The tech-laden Nasdaq Composite Index closed at 7,224.00, losing 0.5%. The fear-gauge CBOE Volatility Index (VIX) increased 14.5% to close at 11.63. A total of around 8.30 billion shares were traded on Tuesday, higher than the last 20-session average of 6.48 billion shares. Decliners outnumbered advancers on the NYSE by a 2.04-to-1 ratio. On Nasdaq, a 2.18-to-1 ratio favored declining issues.
What Weighed On the Benchmarks?
Markets lost some of its early shine on Tuesday and closed in negative territory after special Counsel Robert Mueller reportedly subpoenaed President Trump’s former chief strategist Steve Bannon last week. A subpoena of this kind was issued by Mueller for the first time over the investigation of a possible link between Russian officials and members of Trump election campaign.
Additionally, oil prices fell after investors decided to lock in recent gains. Oil prices moved more than $70 a barrel recently, which prompted investors to indulge in profit-taking on Tuesday. Decrease in oil prices led the Energy Select Sector SPDR (XLE) to decline 1.3%, emerging as the worst performing sector of S&P 500.
Out of the 11 key S&P 500 sectors, eight of them managed to close in the red. However, Health Care Select Sector SPDR (XLV) was one of the three S&P 500 sectors which increased on Tuesday. Gains in UnitedHealth Group Incorporated (UNH - Free Report) contributed to the sector’s rally.
UnitedHealth’s shares increased 1.9% after the diversified healthcare company reported fourth quarter earnings per share and revenues that beat their respective Zacks Consensus Estimate. Also, both the top and bottom line rose year-over-year. UnitedHealth also revised its 2018 financial outlook to reflect the effects of the U.S. corporate tax law changes. (Read More: UnitedHealth Beats on Q4 Earnings, Revises 2018 View)
BP plc (BP - Free Report) is likely to pay additional charge of about $1.7 billion in fourth-quarter 2017 relating to the 2010 Deepwater Horizon ("DWH") spill. (Read More)
CSX Corporation (CSX - Free Report) reported fourth-quarter 2017 earnings per share, beating the Zacks Consensus Estimate. (Read More)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Stock Market News for Jan 17, 2018
Benchmarks ended in the red on Tuesday after recent political tensions weighed on sentiment despite strong quarterly earnings results. Better-than-expected fourth-quarter earnings results and updated 2018 earnings projection from UnitedHealth led key U.S. indexes to reach new highs initially.
However, all the three indexes fell at the close with the Dow posting its biggest reversal in a day since Feb. 10, 2016 after briefly moving above the 26,000 mark for the first time. Additionally, oil prices fell after investors decided to lock in gains, which in turn weighed on the energy sector. Markets were closed on Monday due to Martin Luther King Jr. Day.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) decreased 7.68 points to close at 25,792.86. The S&P 500 fell 0.4% to close at 2,776.42. The tech-laden Nasdaq Composite Index closed at 7,224.00, losing 0.5%. The fear-gauge CBOE Volatility Index (VIX) increased 14.5% to close at 11.63. A total of around 8.30 billion shares were traded on Tuesday, higher than the last 20-session average of 6.48 billion shares. Decliners outnumbered advancers on the NYSE by a 2.04-to-1 ratio. On Nasdaq, a 2.18-to-1 ratio favored declining issues.
What Weighed On the Benchmarks?
Markets lost some of its early shine on Tuesday and closed in negative territory after special Counsel Robert Mueller reportedly subpoenaed President Trump’s former chief strategist Steve Bannon last week. A subpoena of this kind was issued by Mueller for the first time over the investigation of a possible link between Russian officials and members of Trump election campaign.
Additionally, oil prices fell after investors decided to lock in recent gains. Oil prices moved more than $70 a barrel recently, which prompted investors to indulge in profit-taking on Tuesday. Decrease in oil prices led the Energy Select Sector SPDR (XLE) to decline 1.3%, emerging as the worst performing sector of S&P 500.
Some of the sectors key components, including Chevron Corporation (CVX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) fell 1.2% and 0.6%, respectively. Both Chevron and Exxon Mobil hold a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Out of the 11 key S&P 500 sectors, eight of them managed to close in the red. However, Health Care Select Sector SPDR (XLV) was one of the three S&P 500 sectors which increased on Tuesday. Gains in UnitedHealth Group Incorporated (UNH - Free Report) contributed to the sector’s rally.
UnitedHealth’s shares increased 1.9% after the diversified healthcare company reported fourth quarter earnings per share and revenues that beat their respective Zacks Consensus Estimate. Also, both the top and bottom line rose year-over-year. UnitedHealth also revised its 2018 financial outlook to reflect the effects of the U.S. corporate tax law changes. (Read More: UnitedHealth Beats on Q4 Earnings, Revises 2018 View)
Stocks That Made Headlines
BP to Cough Up Additional $1.7B in Charges for 2010 Oil Spill
BP plc (BP - Free Report) is likely to pay additional charge of about $1.7 billion in fourth-quarter 2017 relating to the 2010 Deepwater Horizon ("DWH") spill. (Read More)
CSX Earnings Surpass Estimates in Q4, Revenues Disappoint
CSX Corporation (CSX - Free Report) reported fourth-quarter 2017 earnings per share, beating the Zacks Consensus Estimate. (Read More)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>