⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Wall Street dips as investors focus on Middle East, but chipmakers climb

Published 01/07/2020, 06:55 PM
© Reuters. Trader works at the New York Stock Exchange

By Caroline Valetkevitch

NEW YORK (Reuters) - Wall Street's major indexes declined on Tuesday as investor caution persisted amid a dispute between the United States and Iran, while energy shares fell as oil prices gave back some recent gains.

After the bell, S&P 500 futures fell 1% following reports that rockets were fired at an airbase in Iraq hosting U.S. forces.

The late-day drop in S&P 500 futures suggests investors expect Wall Street to open at a loss on Wednesday.

During Tuesday's trading session, Exxon Mobil Corp (N:XOM) and Chevron Corp (N:CVX) declined with oil prices, which had rallied in recent days on escalating tensions between Washington and Tehran following the killing of a top Iranian military commander by the United States last week.

Chipmakers gained and helped to limit market losses, especially in the Nasdaq. The Philadelphia Semiconductor index (SOX) rose 1.8% with Micron Technology Inc (O:MU) gaining 8.8% after brokerage Cowen & Co upgraded the chipmaker to "outperform."

Equity investors have been jittery since late last week, when a U.S. drone strike killed Iranian Major General Qassem Soleimani, taking major indexes off record highs.

"We're trying to digest the Middle East action" and other news on the political front, said Jack Janasiewicz, portfolio manager at Natixis Investment Managers' Multi-Asset Portfolio Solutions group in Boston.

"It's a little bit of a step back, take a breath, consolidate a little bit," he said. "But we're going to start to head into earnings, and that's going to be the next catalyst for the market."

Major U.S. companies begin reporting fourth-quarter results next week, with S&P 500 earnings forecast as of Tuesday to have declined 0.6% in the quarter from a year ago, according to IBES data from Refinitiv.

The Dow Jones Industrial Average (DJI) fell 119.7 points, or 0.42%, to 28,583.68, the S&P 500 (SPX) lost 9.1 points, or 0.28%, to 3,237.18 and the Nasdaq Composite (IXIC) dropped 2.88 points, or 0.03%, to 9,068.58.

Among gainers, Boeing Co (N:BA) shares climbed 1.1% after it said it was recommending that airline pilots undergo simulator training before they resume flying the 737 MAX, a shift from its previous position that pilots only needed computer-based training on new software following two fatal crashes.

Also, Microchip Technology Inc (O:MCHP) rose 6.7% after raising the midpoint of its third-quarter sales forecast.

Apache Corp (N:APA) soared 26.8% after it made a major oil discovery, with France's Total SA (PA:TOTF), off the coast of Suriname.

On the economic front, data showed new orders for U.S.-made goods fell in November, pulled down by steep declines in demand for machinery and transportation equipment.

However, a reading on non-manufacturing sector activity for November came in better than expected.

Declining issues outnumbered advancing ones on the NYSE by a 1.30-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored decliners.

The S&P 500 posted 37 new 52-week highs and one new low; the Nasdaq Composite recorded 94 new highs and 16 new lows.

© Reuters. Trader works at the New York Stock Exchange

Volume on U.S. exchanges was 6.89 billion shares, compared with the 6.94 billion-share average for the full session over the last 20 trading days.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.