S&P 500 sets second record high in as many days
Pacer ETFs President Sean O'Hara on the earnings outlook and investor concerns over interest rates and trade uncertainties.
The S&P 500 stock index Tuesday notched its second record high in as many days, but the session's relatively narrow trading range reflected Wall Street's emerging ambivalence about prospects for global trade.
That ambivalence was reflected in falling bond yields: The yield on the 10-year Treasury fell to 1.98 percent -- its lowest level in more than two years -- signaling strong investor interest in getting out of stocks and into the relative safety of government debt. Bond prices move in the opposite direction of bond yields.
After Monday's rally, when the S&P 500 set its sixth record high of the year, discouraging manufacturing surveys and a U.S. threat of additional tariffs on European goods weighed on equity investor sentiment.
U.S. officials proposed more products from Europe it may hit with tariffs in response to the ongoing trade dispute over aircraft subsidies.
The 89 types of goods listed by the U.S. Trade Representative Monday have an approximate trade value of $4 billion, officials said. The proposed tariffs include food products like pork, dairy, olives, fruit, coffee, pasta, Scotch and Irish whiskey, as well as items like cast iron pipes and various copper alloys.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
The concerns about prospects for global trade were also reflected in crude oil prices. The U.S. benchmark crude West Texas Intermediate fell 2.74 percent to $56.35 percent.
That price decline hit shares of energy companies that depend on oil production but helped some refiners.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| APA | APA CORP. | 22.77 | +0.33 | +1.47% |
| MPC | MARATHON PETROLEUM CORP. | 158.48 | -0.81 | -0.51% |
| CVX | CHEVRON CORP. | 162.36 | +0.75 | +0.46% |
| PSX | PHILLIPS 66 | 133.26 | +1.86 | +1.42% |
In Asia on Tuesday, the major markets closed mixed. China's Shanghai slipped by less than 0.1 percent. Hong Kong's hang Seng added 1.2 percent as the market caught up to Monday's rally when Hong Kong markets were closed for a holiday. Japan's Nikkei added 0.1 percent.
European markets closed with gains. London's FTSE was higher by 0.8 percent, Germany's DAX added 0.1 percent, and France's CAC was higher by 0.2 percent.
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The broad-based S&P 500 stock index set a record high Monday, beginning July trading on a robust note as Wall Street reacted to the U.S. and China agreeing at the G20 summit to restart trade talks.