Nasdaq falls 2.6%, Dow 542 points as oil tops $85
Verizon and AT&T in focus as 5G rollout looms
Federal Reserve balance sheet’s a ‘disaster’: Dick Bove
Odeon Capital Group chief financial strategist Dick Bove argues the Federal Reserve is in one of ‘the worst’ positions he’s ever seen and it will ‘slow down’ the growth of money in the U.S.
Heavy selling hit U.S. stocks on Tuesday as oil and bond yields moved higher.
The Dow Jones Industrial Average fell 542 points or 1.5%, before recovering from a 600+point deficit, while the S&P 500 and Nasdaq Composite slid 2.6% and 1.8%, respectively in a choppy session.
The 10-Year Treasury yield rose to 1.87%, adding pressure to equities.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44860.31 | +123.74 | +0.28% |
| SP500 | S&P 500 | 6021.63 | +34.26 | +0.57% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19174.297336 | +119.46 | +0.63% |
Oil closed above $85 per barrel, an 8-year-high following an attack on an oil facility in the capital of the United Arab Emirates that killed at least three people.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 71.61 | -0.49 | -0.68% |
In deal news, Microsoft announced plans to buy Activision in a combo valued at $68.7 billion giving the software giant a leg-up in the gaming world with titles including ‘Call of Duty’ and ‘Candy Crush’, the companies announced Tuesday.
The deal also made Activision CEO Bobby Kotick over $70 million intra-day as the company's largest single shareholders.
ACTIVISION CEO BOBBY KOTICK IS EVEN RICHER AFTER MICROSOFT DEAL
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 427.99 | +9.20 | +2.20% |
| ATVI | NO DATA AVAILABLE | - | - | - |
Electronic Arts, Take-Two and Zenga rose in a down market as traders weighed the possibility of more M&A.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EA | ELECTRONIC ARTS INC. | 165.02 | +0.88 | +0.54% |
| TTWO | TAKE-TWO INTERACTIVE SOFTWARE INC. | 187.85 | +0.23 | +0.12% |
| ZNGA | NO DATA AVAILABLE | - | - | - |
In earnings, Goldman Sachs shares fell after fourth-quarter profits fell to $10.81 per share, missing analyst estimates of $11.76 tracked by Refinitiv and below the same period a year ago on weaker results from its trading division. JPMorgan shares fell in sympathy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 605.50 | +2.47 | +0.41% |
| JPM | JPMORGAN CHASE & CO. | 249.97 | -0.32 | -0.13% |
| SCHW | THE CHARLES SCHWAB CORP. | 82.25 | +0.48 | +0.59% |
| BAC | BANK OF AMERICA CORP. | 47.75 | +0.25 | +0.53% |
Charles Schwab also reported results that fell below analysts' expectations with profits of $0.76 per share vs. $0.88 estimate, while revenue was $4.71 billion falling short of the $4.79 billion estimate. Bank of America will report results on Wednesday.
Unilever shares slipped after Fitch Ratings warned a downgrade could come, citing the company's strategy which focuses on healthcare which includes its planned acquisition of GlaxoSmithKline's consumer unit.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UL | UNILEVER PLC | 59.10 | +0.33 | +0.55% |
| GSK | GSK PLC | 34.02 | -0.13 | -0.38% |
Separately, 23andMe extended a joint immuno-oncology program.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ME | 23ANDME HOLDING CO | 3.16 | -0.13 | -3.95% |
Meanwhile, Interactive Brokers and J.B. Hunt Transport Services will report after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IBKR | INTERACTIVE BROKERS GROUP INC. | 192.95 | +1.97 | +1.03% |
| JBHT | J.B. HUNT TRANSPORT SERVICES INC. | 190.86 | +2.51 | +1.33% |
Keep an eye on telecom stocks, including Verizon and AT&T, with the rollout of 5G Wednesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VZ | VERIZON COMMUNICATIONS INC. | 44.37 | +0.39 | +0.89% |
| T | AT&T INC. | 23.08 | -0.02 | -0.09% |
As for economic data, the National Association of Home Builders' housing market index slipped one point to 83.
In Asia, the Bank of Japan wrapped up a two-day policy meeting with no major changes. Its benchmark interest rate remains at a longstanding minus 0.1%.
Price increases in Japan have been less pronounced than they are in the U.S. and some other nations, though the central bank raised its inflation forecast for the fiscal year that begins in April to 1.1% from a previous estimate of 0.9%.
Japan’s benchmark Nikkei 225 fell 0.3% to 28,257.25. Australia’s S&P/ASX 200 lost 0.1% to 7,408.80. South Korea’s Kospi dropped 0.9% to 2,864.24. Hong Kong’s Hang Seng slipped 0.4% to 24,112.78, while the Shanghai Composite rose 0.8% to 3,569.91.
The Associated Press contributed to this report.