Investing.com - U.S. stocks were steady on Tuesday, as investors awaited the release of U.S. non-manufacturing data while concerns over the debt crisis in the euro zone continued to dampen market sentiment.
During early U.S. trade, the Dow Jones Industrial Average eased 0.02%, the S&P 500 index edged down 0.02%, while the Nasdaq Composite index added 0.05%.
Sentiment waned after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
Investor confidence had improved earlier, ahead of a teleconference of G7 finance ministers later Tuesday, to discuss the euro zone’s debt crisis.
Retailers were among the session’s top losers, as Home Depot dropped 0.41% and Wal-Mart declined 0.56%, while Costco Wholesale Corp. saw shares retreat 0.55%.
Courier giant FedEx Corp. also dropped 0.62% after saying earlier that it retired 24 jets to cut capacity in the U.S. domestic Express division, as a slowing economy saps shipping volumes for the operator of the world’s largest cargo airline.
In the energy sector, Exxon Mobil fell 0.12% after CEO Rex Tillerson said the company is considering exporting liquefied natural gas from the U.S. Shares in rival company Chevron were down 0.24%.
On the upside, financial stocks were broadly higher. Shares in Bank of America jumped 1.88% and JP Morgan climbed 1.45%, while Citigroup and Goldman Sachs advanced 1.69% and 1.05% respectively.
The New York Times reported on Monday that Goldman Sachs cut fewer than 50 jobs last week in order to trim expenses, as the U.S. lender’s revenue prospects worsen. The reductions included some managing directors, the second-highest position at the firm after partners.
Elsewhere, Oracle shares surged 2.08% after saying it will acquire Collective Intellect, which helps businesses to get information about consumers from Facebook and Twitter pages. The news came a day after rival Salesforce.com, whose shares climbed 0.89%, announced a deal to purchase social media marketing company Buddy Media.
Also in social media, Facebook shares advanced 2.45% after closing at an all-time low on Monday.
Other stocks in focus included real estate firm Hovnanian Enterprises, due to report earnings later in the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.53%, France’s CAC 40 surged 1.12%, while Germany's DAX dropped 0.42%. Markets in the U.K. remained closed for a national holiday.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.40%, while Japan’s Nikkei 225 Index jumped 1.04%.
Also Tuesday, official data showed that German factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Later in the day, the U.S. Institute for Supply Management was to release a report on non-manufacturing activity.
During early U.S. trade, the Dow Jones Industrial Average eased 0.02%, the S&P 500 index edged down 0.02%, while the Nasdaq Composite index added 0.05%.
Sentiment waned after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
Investor confidence had improved earlier, ahead of a teleconference of G7 finance ministers later Tuesday, to discuss the euro zone’s debt crisis.
Retailers were among the session’s top losers, as Home Depot dropped 0.41% and Wal-Mart declined 0.56%, while Costco Wholesale Corp. saw shares retreat 0.55%.
Courier giant FedEx Corp. also dropped 0.62% after saying earlier that it retired 24 jets to cut capacity in the U.S. domestic Express division, as a slowing economy saps shipping volumes for the operator of the world’s largest cargo airline.
In the energy sector, Exxon Mobil fell 0.12% after CEO Rex Tillerson said the company is considering exporting liquefied natural gas from the U.S. Shares in rival company Chevron were down 0.24%.
On the upside, financial stocks were broadly higher. Shares in Bank of America jumped 1.88% and JP Morgan climbed 1.45%, while Citigroup and Goldman Sachs advanced 1.69% and 1.05% respectively.
The New York Times reported on Monday that Goldman Sachs cut fewer than 50 jobs last week in order to trim expenses, as the U.S. lender’s revenue prospects worsen. The reductions included some managing directors, the second-highest position at the firm after partners.
Elsewhere, Oracle shares surged 2.08% after saying it will acquire Collective Intellect, which helps businesses to get information about consumers from Facebook and Twitter pages. The news came a day after rival Salesforce.com, whose shares climbed 0.89%, announced a deal to purchase social media marketing company Buddy Media.
Also in social media, Facebook shares advanced 2.45% after closing at an all-time low on Monday.
Other stocks in focus included real estate firm Hovnanian Enterprises, due to report earnings later in the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.53%, France’s CAC 40 surged 1.12%, while Germany's DAX dropped 0.42%. Markets in the U.K. remained closed for a national holiday.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.40%, while Japan’s Nikkei 225 Index jumped 1.04%.
Also Tuesday, official data showed that German factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Later in the day, the U.S. Institute for Supply Management was to release a report on non-manufacturing activity.