Dow jumps 500 points, Nasdaq over 2%
10-year Treasury yield hovers at 2.9% – highest since 2018
Risk of recession could reach 35 percent within next two years
American Action Forum president Douglas Holtz-Eakin discusses how rising inflation is increasing the likelihood of a recession and contributing to Biden’s falling poll numbers on ‘Fox Business Tonight.’
U.S. stocks picked up momentum in the final hour of trading Tuesday as investors digested a fresh round of earnings, rising bond yields and a downgrade to global growth estimates by the International Monetary Fund, which cited inflation and Ukraine as worsening headwinds.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41794.6 | -257.59 | -0.61% |
| SP500 | S&P 500 | 5712.69 | -16.11 | -0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18179.984429 | -59.93 | -0.33% |
The Dow Jones Industrial Average tacked on just about 500 points or 1.5%, while the S&P 500 and Nasdaq Composite rose 1.6% and 2.1%, respectively.
Consumer discretionary and large-cap tech led the gains even as the 10-year yield rose to its highest level since 2018, at 2.9%. Energy stocks slipped as oil dipped down to the $102 per barrel level.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLY | CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF | 199.40 | -0.69 | -0.34% |
| QQQ | INVESCO QQQ TRUST - USD DIS | 486.01 | -1.42 | -0.29% |
| XLE | ENERGY SELECT SECTOR SPDR ETF | 89.57 | +1.54 | +1.75% |
SOCIAL SECURITY RECIPIENTS COULD SEE BIGGEST COST-OF-LIVING RAISE SINCE 1981
U.S. stocks were slightly higher as the flood of financial earnings will continue, with Dow members Travelers, Truist Financial and Fifth Third Bancorp posting results. (Courtney Crow/New York Stock Exchange via AP / Associated Press)
In earnings, Johnson & Johnson reported earnings per share of $2.67, beating the $2.56 per share Refinitiv estimate. It announced it is suspending its COVID-19 vaccine sales guidance due to global supply surplus and demand uncertainty.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 158.24 | -1.89 | -1.18% |
| MRNA | MODERNA INC. | 53.54 | -1.09 | -2.00% |
Separately, Moderna reported its "COVID-19 booster platform" was effective in trials.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | NO DATA AVAILABLE | - | - | - |
Investors continue to eye Twitter after The Wall Street Journal reported that private equity firm Apollo Global may be eyeing a bid. This follow's the company's plan to make it more difficult for someone to take over the company after Tesla CEO Elon Musk offered $43 billion for the social media giant.
APOLLO GLOBAL CONSIDERS PARTICIPATING IN A BID FOR TWITTER
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 755.51 | -0.59 | -0.08% |
In the afternoon, the spotlight will turn to Netflix when the streaming giant becomes the first of the big-cap consumer/tech titans to post January-March results.
Analysts surveyed by Refinitiv expect earnings-per-share to slip 23% from a year ago to $2.89 on a 10.7% jump in revenue to $7.93 billion. Analysts are predicting 2.5 million new subscribers for the March quarter, matching Netflix’s own forecast and down 37% from 3.98 million in the previous year's first quarter.
Netflix CEO Reed Hastings. (Getty Images / Getty Images)
In addition, watch for numbers from Dow member and computer services company IBM on Tuesday after the close of trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 206.38 | -1.88 | -0.90% |
In other commodities, gold settled at $1,955.70 an ounce.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST - USD ACC | 252.83 | +0.36 | +0.14% |
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The Associated Press contributed to this report.