The stock market traded mixed Tuesday morning, after erasing some of its early losses, as consumer confidence slipped less than expected. Investors took a breather from last week's three day rally, while oil prices continued to soar and the European Union agreed to a partial ban on Russian oil.
The Nasdaq composite was flat. The S&P 500 dropped 0.3%, and the Dow Jones Industrial Average fell 0.4%. The small-cap Russell 2000 fell 0.9%.
Volume fell on the Nasdaq and the NYSE compared with the same time on Friday. The stock market was closed on Monday to observe the Memorial Day holiday.
U.S. oil prices jumped to a two-month high as European Union leaders imposed a partial oil embargo on Russia.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33081.34 | -131.62 | -0.40 |
| S&P 500 | (0S&P5) | 4144.99 | -13.25 | -0.32 |
| Nasdaq | (0NDQC ) | 12123.69 | -7.44 | -0.06 |
| Russell 2000 | 185.91 | -1.73 | -0.92 | |
| IBD 50 | 32.39 | -0.26 | -0.80 | |
Last Update: 12:24 PM ET 5/31/2022 |
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The 10-year Treasury yield rebounded to 2.84% Tuesday morning after closing Friday at 2.74%. Last week, the 10-year Treasury yield hit its lowest level since mid-April.
Oil Stocks Gain On European Ban On Russian Oil
Meanwhile, U.S. oil prices jumped 2% as the European Union agreed to end shipborne oil trade with Russia. West Texas Intermediate crude traded near $117 a barrel.
In economic news, the U.S. Consumer Confidence Index fell 2.2 points in May to a three-month low of 106.94. Economists expected it to drop more.
"We can never underestimate the U.S. consumer," said Jennifer Lee, Senior Economist at BMO Capital Markets. "But plans to pull back on purchases, and become a little more cautious, (are) something that the Federal Reserve would welcome as it aims to cool demand."
Meanwhile, President Joe Biden said he would support the Federal Reserve in its efforts to combat inflation. He was scheduled to meet with Fed Chairman Jerome Powell Tuesday.
The price of Bitcoin surged over the long weekend, trading briefly over $32,000 Tuesday morning, according to CoinDesk.
Asian and European stocks traded mixed Tuesday. The FTSE 100 in London gained 0.6%, while the German DAX and the French CAC 40 were both down more than 1%. In Asia, Japan's Nikkei 225 was down 0.3% while China's Hang Seng Index was up 1.4%.
In the U.S., the energy sector was the only S&P sector that gained Tuesday morning. The Energy Select Sector ETF gained 1.9%. Recent entry to the IBD 50 Callon Petroleum rose nearly 4%, while recent entry to the Big Cap 20 Exxon Mobil gained 1%.
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GlaxoSmithKline on Tuesday announced a $3.3 billion deal to buy pneumonia vaccine-maker Affinivax. Glaxo is betting $2.1 billion up front and up to $1.2 billion in potential milestone payments to acquire privately held Affinivax. The deal would step-up GSK's competitiveness with rivals Pfizer and Merck in developing pneumonia vaccines.
GSK stock dipped 0.1% Tuesday, while Pfizer and Merck fell 2% and 1%, respectively.
"The proposed acquisition further strengthens our vaccines (research and development) pipeline, provides access to a new, potentially disruptive technology and broadens GSK's existing scientific footprint in the Boston area," Glaxo's Chief Scientific Officer Hal Barron said in a written statement.
The Innovator IBD 50 ETF, a bellwether for growth stocks, fell 0.8%.
Separately, U.S. home prices rose 20.6% year over year for the month of March, as the demand for homes outstripped the supply of homes on the market, according the S&P CoreLogic Case-Shiller index.
Amazon's recent decision to cut back on its e-commerce operations was having an effect on the growth of the industrial-space sector. Amazon gained 3.5%, but the S&P Select Sector ETF slid 1.2%.
After the close of business today, computer hardware maker Hewlett Packard and enterprise software maker Salesforce are scheduled to release their April quarter earnings. HP was expected by analysts to earn $1.05 a share, while CRM was expected to earn 4 cents a share.
Follow Michael Molinski on Twitter @IMmolinski
