Benchmark US indices closed lower on Tuesday, August 17, dragged down by loss in mega-cap stocks and weaker-than-expected retail sales data.
The S&P 500 was down 0.71% to 4,448.08. The Dow Jones fell 0.79% to 35,343.28. The NASDAQ Composite was down 0.93% to 14,656.18, and the small-cap Russell 2000 shed 1.19% to 2,177.17.
US retail spending saw a sharp drop in July, the Commerce Department said on Tuesday. Spending in retail outlets and restaurants dropped by 1.1% in July from the previous month, it said. Retail and cyclical stocks plunged after the data. In addition, auto sales fell 3.9% after decreasing 2.2% in June.
Meanwhile, separate Federal Reserve data showed that the manufacturing rate surged by 1.4% in July, above Wall Street's estimate, after declining 0.3% in the prior month.
Barring the healthcare segment, the rest of the sectors on the S&P 500 declined. Basic materials, consumer discretionary, and technology stocks were the bottom movers.
Shares of Home Depot (HD) declined by 4.28% in intraday trading despite better-than-expected Q2 earnings. However, the company said fewer customers visited its stores during the quarter as do-it-yourself projects saw a decline due to the significant recovery from the pandemic.
Walmart Inc (WMT) reported its Q2 earnings on Tuesday. Its revenue rose by 2.4% YoY to US$141 billion. The adjusted EPS came in at US$1.78, topping analysts’ expectations. In addition, it also raised its US same-store annual sales projections. However, the WMT stock fell 0.05% at the close.
Shares of Alibaba Group Holding Limited (BABA) slipped 4.80% in intraday trading after Chinese regulators announced new rules to curb unfair competition on the internet.
In the healthcare sector, UnitedHealth Group Incorporated (UNH) gained 1.10%, Pfizer Inc. (PFE) rose by 2.24%, and Novo Nordisk A/S (NVO) gained 1.45%. Moderna Inc. (MRNA) and Sanofi (SNY) advanced 6.41% and 1.36%, respectively.
In technology stocks, Taiwan Semiconductor Manufacturing Company Limited (TSM) declined 3.17%, NVIDIA Corporation (NVDA) fell by 2.71%, and ASML Holdings N.V. (ASML) slipped by 1.38%. Intel Corporation (INTC) and Broadcom Inc. (AVGO) tumbled 1.66% and 1.88%, respectively.
In the material sector, BHP Group (BHP) plunged 8.47%, Rio Tinto Group (RIO) declined 1.73%, and Vale S.A. (VALE) fell 1.84%. Freeport-McMoRan Inc. (FCX) and Southern Copper Corporation (SCCO) also plunged 5.82% and 2.90%.
In the crypto world, Coinbase Global Inc. (COIN) declined 2.15%, Bitcoin (BTC) fell 1.26%, and Ethereum (ETH) dropped 1.85%.
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Top performers on S&P 500 included Moderna Inc (7.49%), Kroger Co (4.58%), Vertex Pharmaceuticals Inc (3.91%), Pfizer Inc (3.09%). On NASDAQ, top performers were Virpax Pharmaceuticals Inc (265.48%), Alfi Inc (40.64%), Monday.Com Ltd (24.45%), Sesen Bio Inc (23.77%). On Dow Jones, Merck & Co Inc (1.15%), UnitedHealth Group Inc (1.10%), Johnson & Johnson (0.92%), Travelers Companies Inc (0.74%) were the leaders.
Top laggards on S&P 500 included DXC Technology Co (-11.83%), Under Armour Inc (-5.96%), Lowe's Companies Inc (-5.80%), Freeport-McMoRan Inc (-5.78%). On NASDAQ, Helbiz Inc (-29.67%), TuanChe Ltd (-26.29%), View Inc (-24.32%), Creative Realities Inc (-22.60%). On Dow Jones, Home Depot Inc (-4.27%), Boeing Co (-2.99%), Caterpillar Inc (-1.96%), Walt Disney Co (-1.82%) were the laggards.
Top volume movers were Apple Inc (17.84M), Bank of America Corp (12.81M), Pfizer Inc (12.30M), Ford Motor Co (12.16M), Advanced Micro Devices Inc (8.64M), Virpax Pharmaceuticals Inc (18.14M), Sesen Bio Inc (14.48M), Sundial Growers Inc (11.38M), Nanovibronix Inc (10.62M), ContextLogic Inc (7.61M), Plug Power Inc (7.22M).
Futures & Commodities
Gold futures were down 0.13% to US$1,787.55 per ounce. Silver decreased by 0.60% to US$23.648 per ounce, while copper fell 2.40% to US$4.2230.
Brent oil futures decreased by 0.88% to US$68.90 per barrel and WTI crude was down 1.24% to US$66.22.
The 30-year Treasury bond yields was up 0.12% to 1.926, while the 10-year bond yields rose 0.77% to 1.267.
US Dollar Futures Index increased by 0.57% to US$93.148.