U.S. Stocks Close Mostly Lower After Warning From Apple
Stocks moved mostly lower during trading on Tuesday as traders returned to their desks following the long holiday weekend. While the Nasdaq managed to end the day slightly higher, the Dow and the S&P 500 closed in negative territory.
The Nasdaq inched up 1.57 points or less than a tenth of a percent to 9,732.74, but the Dow slid 165.69 points or 0.6 percent to 29,232.39 and the S&P 500 fell 9.87 points or 0.3 percent to 3,370.29.
The weakness on Wall Street came after tech giant Apple (AAPL) warned of weaker than previously forecast second quarter revenue.
Apple said it expects to miss its forecast for second quarter revenue of $63 billion to $67 billion due to lower iPhone production and weak Chinese demand as a result of the coronavirus outbreak.
Disappointing earnings news from Walmart (WMT) also weighed on the markets after the retail giant reported weaker than expected fourth quarter results and provided disappointing guidance.
Meanwhile, the Federal Reserve Bank of New York released a report showing growth in New York manufacturing activity saw a notable acceleration in the month of February.
The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 5.0.
The bigger than expected increase by the headline index came as the new orders index shot up 16 points to 22.1 and the shipments index climbed to 18.9.
A separate report from the National Association of Home Builders showed a slight deterioration in homebuilder confidence in the month of February.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index slumped by 1.4 percent, while Hong Kong’s Hang Seng Index tumbled by 1.5 percent.
The major European markets also moved to the downside on the day. While the French CAC 40 Index fell by 0.5 percent, the U.K.’s FTSE 100 Index and the German DAX Index slid by 0.7 percent and 0.8 percent, respectively.
In the bond market, treasuries moved higher over the course of the trading session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped 3.2 basis points to 1.556 percent.
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