The markets were overall weaker on Tuesday, with a significant exception stemming from big gains reported by tech giants following 13F disclosures by hedge funds, which indicated that speculators raised their exposure to major tech firms.
Alphabet, Inc. GOOG GOOGL, Advanced Micro Devices, Inc. AMD, Amazon, Inc. AMZN and NVIDIA Corp. NVDA were the best performers of the day among mega-cap stocks.
Warren Buffett, CEO of Berkshire Hathaway (NYSE: BKR-A), disclosed a 7.5% increase in Apple, Inc.'s AAPL shares in his 13F filing, followed by a 0.3% increment in Capital One Financial Corp. COF.
Bill Ackman's Pershing Square Capital Management ended the March quarter with a $1.1 billion holding in Alphabet, marking a 10% increase.
On the macro front, retail sales increased 0.4% in April, up from a 0.7% loss in March but falling short of forecasts of a 0.8% increase. Fed speakers made some hawkish statements, which moved rate-increase expectations slightly higher for June, which are now put at a 27% chance, according to the CME Group Fedwatch tool.
Investors are now waiting for President Joe Biden and House Speaker Kevin McCarthy to meet later in the day to discuss raising the debt ceiling.
Cues From Tuesday's Trading:
The S&P 500 fell 0.2% to 4,126, holding up in a narrow range. Blue-chip stocks in the Dow Jones Industrial Average fell 0.5%.
The Nasdaq 100 index rose 0.7% to over 13,500 points, extending its bull market. Small-cap shares in the Russell 2000 index fell 1%.
U.S. Indices’ Performance Monday
| Index | Performance (+/-) | Value |
| Nasdaq 100 | +0.7% | 13,504.12 |
| S&P 500 Index | -0.2% | 4,128 |
| Dow Jones Industrial | -0.49% | 33,170.34 |
Analyst Color:
According to Bank of America technical analysts, there are bullish signals for the S&P 500 index. "April 2022 through March 2023 marked 12 consecutive months of negative year-on-year returns for the S&P. April 2023 broke this streak with a positive YoY return. Ending a streak of negative YoY returns of at least 12 months has generated a bullish backdrop signal for the SPX with average and median 12-month returns of 14.9% and 12.5%, respectively".
Tuesday's Trading In Major US Equity ETFs: In midday trading on Tuesday, the SPDR S&P 500 ETF Trust SPY was 0.3% lower to $411.71, the SPDR Dow Jones Industrial Average ETF DIA was 0.7% lower to $331.58 and the Invesco QQQ Trust QQQ was 0.52% higher to $328.50, according to Benzinga Pro data.
Almost all U.S. equity sectors were negative, except for the Technology Select Sector SPDR Fund XLK and the Consumer Discretionary Select Sector SPDR Fund XLY, which were 0.5% and 0.4% higher, respectively.
The Energy Select Sector SPDR Fund XLE and Real Estate Select Sector SPDR Fund XLRE were the laggards, down 2.2% and 2% respectively on the day.
Latest Economic Data:
Cleveland Fed President Loretta Mester, who is a member of the Federal Open Market Committee, said that a rate hold in June should not be taken for granted, hinting that she would be inclined to hike more, although recognizing the need to monitor banking credit data.
The Census Bureau reported a 0.4% increase in monthly retail sales for April, up from a 0.7% decline in March but below the expected increase of 0.8%.
Industrial production rose 0.5% in April, up from a flat reading in March and above expectations. Manufacturing production rose 1% on the month, reversing some of the 0.5% decline in March.
New York Fed President John Williams, also a FOMC member, spoke at 12:15 p.m. EDT. Dallas Fed President Lorie Logan is due to speak at 3:15 p.m. EDT. Bostic is scheduled to speak again at 7 p.m. EDT.
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Stocks In Focus:
- Capital One Financial Corp. COF rose over 2% after Warren Buffett's Berkshire Hathaway, Inc. BRK BRK took a fresh position in the bank holding company.
- Horizon Therapeutics, Inc. HZNP plunged over 14% after reports said the Federal Trade Commission is seeking to block its proposed acquisition by Amgen, Inc. AMGN.
- Home Depot, Inc. HD slid 1.4% after the home improvement retailer reported first-quarter revenue that trailed expectations and in-line earnings per share. The retailer also lowered its full-year guidance.
Commodities, Bonds, Other Global Equity Markets:
Crude oil edged 0.5% lower, with a barrel of WTI-grade crude dropping to $70.90. The United States Oil Fund ETF USO was 0.5% lower to $62.80 per share.
Treasury yields rose, with the 10-year yield up by 4 basis points to 3.55% and the two-year yield up 8 basis points to 4.09%. The iShares 20+ Year Treasury Bond ETF TLT was 0.6% lower for the day.
The dollar slightly strengthened, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, up 0.2%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.1% down to 1.0864.
European equity indices were all in the red. The iShares MSCI Eurozone ETF EZU was 0.5% lower.
Gold dropped 1.35% to $1,988/oz. The SPDR Gold Trust GLD was 1.3% down to $184.72. Silver fell 1.6% to $23.66, with the iShares Silver Trust SLV falling 1.6% to $21.74 per share. Bitcoin BTC/USD fell 0.5% to $27,040.
Staff writer Piero Cingari updated this report midday Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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