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US stocks closed the session lower on Tuesday, July 12, as investors traded cautiously ahead of the CPI data, due to be released by the Labor Department on Wednesday.
The S&P 500 fell 0.92% to 3,818.80. The Dow Jones was down 0.62% to 30,981.33. The NASDAQ Composite lost 0.95% to 11,264.73, and the small-cap Russell 2000 ticked down 0.22% to 1,728.18.
The CPI data would provide insight into the current level of inflation, while the so-called "core" CPI data would indicate if the inflation has peaked, setting the path for Federal Reserve in its monetary support planning.
The investors are expecting that the Fed may raise the interest rate again by 75 basis points at the conclusion of their July meeting, to tame the multi-decade high inflation.
The market sentiments are already sullen on fears that further aggressive policies by the central bank could tip the economy into a recession.
Google searches on the topic of recession have already crossed the levels seen during the 2008 financial crisis, the Wall Street Journal quoted Citigroup analysts as saying.
The investors would also keep a close watch on the big-bank earnings, that are scheduled later this week.
The industrials, financials, and material sectors were the gainers in the S&P 500 index on Tuesday. Six of the 11 segments of the index stayed in the positive territory. Energy, healthcare, and information technology were the laggards.
PepsiCo, Inc. (PEP) added 0.18% in intraday trading after the company reported strong quarterly earnings results that topped Wall Street estimates. The company said that it could increase its product prices amid strong demand.
Shares of The Boeing Company (BA) gained 8.44% after the aerospace firm delivered the highest aircraft in June since March 2019. The company delivered 51 airplanes in June, bringing the total number to 216 aircraft in the first half, up 38% YoY.
Canoo Inc. (GOEV) jumped 64.97% in the intraday session after Walmart Inc. (WMT) agreed to buy 4,500 electric vehicles from the EV maker, along with the option to buy up to 10,000.
In the industrial sector, Honeywell International Inc. (HON) increased by 0.53%, 3M Company (MMM) gained 0.89%, and General Electric Company (GE) added 2.03%. TransDigm Group Incorporated (TDG) and Cummins Inc. (CMI) advanced 1.99% and 2.25%, respectively.
In material stocks, The Sherwin-Williams Company (SHW) rose 1.89%, Ecolab Inc. (ECL) soared 2.21%, and Nucor Corporation (NUE) surged 1.17%. DuPont de Nemours, Inc. (DD) and PPG Industries, Inc. (PPG) ticked up 1.09% and 1.31%, respectively.
In the energy sector, Exxon Mobil Corporation (XOM) decreased by 1.33%, Chevron Corporation (CVX) fell 1.84%, and Shell plc (SHEL) lost 1.43%. PetroChina Company Limited (PTR) and TotalEnergies SE (TTE) plummeted by 1.17% and 2.01%, respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) shed 4.91% and 8.34%, respectively. The global crypto market cap slipped 5.04% to US$867.03 billion at 3:55 pm ET on July 12.
Futures & Commodities
Gold futures were down 0.49% to US$1,723.20 per ounce. Silver decreased by 1.43% to US$18.858 per ounce, while copper fell 5.01% to US$3.2585.
Brent oil futures decreased by 7.40% to US$99.17 per barrel and WTI crude was down 8.07% to US$95.69.
Bond Market
The 30-year Treasury bond yields were down 1.00% to 3.148, while the 10-year bond yields fell 0.31% to 2.982.
US Dollar Futures Index increased by 0.17% to US$108.007.