U.S. market indexes reported losses Tuesday as manufacturing data from China combined with weak manufacturing output in the U.S. increased worries over global growth. Currencies also traded with greater volatility Tuesday after the Australian central bank reported a decrease in rates. For the day the Dow Jones Industrial Average closed at 17,750.91 for a loss of -140.25 points or -0.78 percent. The S&P 500 closed at 2,063.37 for a loss of -0.87 percent or -18.06 points.
China’s Caixin manufacturing PMI was the leading report that had the greatest affect on markets for the day. The Caixin PMI reported an Index level of 49.4 for April and was down from 49.7 in March, falling below consensus of 49.9. An Index level below 50 is significant since it usually signifies a contraction. China’s report added greater worries in the U.S. which also saw declines in manufacturing output Monday following a weak GDP report. Last week the Bureau of Economic Analysis reported GDP growth of 0.5 percent for the first quarter. Economic indicators reported on Monday showed further slowing which became more of a factor Tuesday. On Monday the PMI Manufacturing Index, ISM Manufacturing Index and construction spending all reported disappointing output. The PMI Manufacturing Index was at a level of 50.8 in April and consensus was 51.0. The ISM Manufacturing Index level for April was 50.8, below consensus of 51.5. Construction spending for March increased 0.3 percent versus an expected 0.5 percent.
Preliminary auto sales began their release on Tuesday with domestic sales seeming to increase for the month of April. Preliminary reports showed domestic auto sales at an annualized rate of 13.5 million, up from 13.3 million in March. GM (GM) and Ford (F) led sales with GM reporting a gain of 3.5 percent from the comparable month. Ford’s sales were up 3.6 percent. Both stocks reported stock price losses for the day with GM closing at $31.25 for a loss of -0.50 points or -1.57 percent and Ford closed at $13.43 for a loss of -0.19 points or -1.40 percent.
Daily Market Movers
In the Dow Jones Industrial Average, large-cap stock Pfizer (PFE) reported earnings. Pfizer reported strong results beating analysts’ revenue and earnings expectations. Revenue for the first quarter was $13 billion, beating analysts’ estimates by $1 billion and gaining 19.7 percent from the comparable quarter. EPS was $0.67, beating analysts’ estimates by $0.12.
Pfizer led DJIA gains Tuesday with a stock price increase of 2.84 percent. Apple (AAPL) recovered from some of its post-earnings losses to gain 1.63 percent for the day. UnitedHealth (UNH) was also higher for the day, up 0.29 percent. Losses were led by United Technologies (UTX), JPMorgan Chase (JPM) and Cisco (CSCO). All sectors were lower Tuesday led by energy, materials and financial services.
Dow Jones Industrial Average Tuesday. Google Finance.
The Nasdaq Composite closed lower for the day on Tuesday at 4,763.22 for a loss of -1.13 percent. Apple was a technology leader in trading for the day after Apple’s Tim Cook discussed his outlook for the company in a CNBC interview Tuesday with Jim Cramer of Mad Money.
In small-caps, the Russell 2000 followed the day’s trend lower closing at 1,122.08 for a loss of -18.84 points or -1.65 percent. Other small-cap indexes were also lower. The S&P 600 closed at 690.09 for a loss of -9.94 points or -1.42 percent. The Dow Jones Small-Cap Growth TSM Index closed at 6,892.77 for a loss of -119.35 points or -1.70 percent. The Dow Jones Small-Cap Value TSM closed at 8,127.13 for a loss of -118.80 points or -1.44 percent.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1,454.30 for a loss of -19.36 points or -1.31 percent; the Russell 3000 which closed at 1,214.81 for a loss of -12.13 points or -0.99 percent; and the Dow Jones U.S. Select Dividend Index which closed at 586.11 for a loss of -5.06 points or -0.86 percent.