Investing.com -- U.S. stocks were unable to hold onto modest gains Tuesday on a volatile day of trading, as gains among industrial and transport stocks were offset by sharp energy losses, which pushed crude prices back near 12-year lows.
Investors were also cautious to make any major trades ahead of a highly-anticipated two-day appearance by Federal Reserve chair Janet Yellen on Capitol Hill, beginning on Wednesday morning. At Yellen's semi-annual Humphrey-Hawkins testimony, the Fed chair could provide further clarity to the gradual path the U.S. central bank will take during the early stages of its first tightening cycle in nearly a decade. On Tuesday, analysts from Goldman Sachs Group Inc (N:GS) estimated that the Fed will raise interest rates only three times this year, a slight cut from initial projections of four rate hikes for 2016.
The Dow Jones Industrial Average fell 12.67 or 0.08% to 16,014.38, while the NASDAQ Composite Index dropped 14.99 or 0.35% to 4,268.76, extending one of its worst four-day stretches over the last year. The Dow, which fell as much as 146 points at session-lows, has lost approximately 1,600 points since Yellen's last public appearance in mid-December. The S&P 500 Composite index, meanwhile, lost 1.23 or 0.07% to 1,852.21, as five of 10 sectors closed in the green. Stocks in the Energy and Telecommunications sectors lagged, while stocks in the Health Care and Basic Materials industries led.
The top performer on the Dow was Pfizer Inc (N:PFE), which added 0.54 or 1.80% to 29.10. Pfizer finished just above Home Depot Inc (N:HD), which gained 2.01 or 1.80% to 29.10. Earlier on Tuesday, CNBC analyst Jim Cramer described Home Depot (N:HD) as a strong buying opportunity before Yellen's speech. Home Depot shares, Cramer explained, are closely tied to Masco Corporation (N:MAS), a manufacturer of products for new home construction and home improvement. In Tuesday's session, Masco shares surged as much as 8% amid solid fourth quarter and 2015 full-year results.
The worst performer was Chevron Corporation (N:CVX), which fell 3.07 or 3.57% to 82.92. U.S. crude futures plunged more than 5% to intraday lows of $27.75 a barrel, moving near 2003 lows hit earlier last month. The latest sell-off was triggered by a bearish report from the Paris-based International Energy Agency, which predicted a further widening between global supply and demand levels in its February Oil Market report. Shares in the oil giant are down by more than 22% over the last year.
The biggest gainer on the NASDAQ was Electronic Arts Inc (O:EA), which surged more than 3% to 58.25. Although the video game giant has fallen by more than 20% over the last six months, Electronic Arts is still up 6% over the last 52 weeks. Electronic Arts finished just above ILMN, which gained 4.17 or 3.04% to 143.14. While shares in the genetic sequencing company are down more 10% since it narrowly missed earnings' forecasts earlier this month, analysts noted that revenue from its non-invasive prenatal testing (NIPT) unit surged 50% on an annual basis in the fourth quarter. The worst performer was Viacom Inc (O:VIA), which plunged 8.99 or 21.48% to 32.86, following the release of weaker than expected quarterly earnings on Tuesday.
"Our outlook and the facts have been distorted and obscured by the naysayers, self-interested critics and publicity seekers," Viacom CEO Philippe Dauman said in a conference call. “I could not be more focused on getting Viacom’s stock price back to the much higher level enjoyed under my leadership just a short time ago."
Dauman made his first public comments on Tuesday since he replaced 92-year old Sumner Redstone as the company's chairman last week.
The top performer on the S&P 500 was Owens-Illinois Inc (N:OI), which added 1.23 or 9.99% to close at 13.54. Viacom was also the worst performer on the S&P 500, just below HCP Inc (N:HCP) which plunged 5.66 or 16.65% to 28.33.
On the New York Stock Exchange, declining issues outnumbered by a 2,126-938 margin.