S&P 500, Nasdaq end down after hitting new heights2021|01:35
The S&P 500 and Nasdaq pushed further into record territory Tuesday but turned tail in the afternoon to close lower after Treasury yields rose. Investors digested mixed earnings from a pair of Wall Street titans and data showing the biggest spike in consumer prices in 13 years last month. A choppy trading session Tuesday ended with the Dow down a third of a percent. The S&P 500 and Nasdaq lost nearly four-tenth of a percent. Rate-sensitive bank stocks were among the leading decliners. JPMorgan Chase and Goldman Sachs kicked off earnings season with surging quarterly profits, but O’Neil Global Advisors Chief Investment Officer Randy Watts said they failed to meet investor’s high expectations. “They wanted to see a blowout across the board. One place that was weak for JPMorgan and also weak for Goldman Sachs was trading. So both equity trading and fixed income trading were slower. And that's because the market has been less volatile.” Boeing shares were the biggest drag on the Dow, declining 4%. The Federal Aviation Administration found a new manufacturing quality issue with some undelivered 787 Dreamliner jets. PepsiCo shares gained 2%. The beverage and snacks giant raised its full-year earnings forecast. Demand for its sodas is surging as people flock to restaurants and theaters. On Wednesday and Thursday, Wall Street will eye Fed Chair Jerome Powell’s congressional testimony for clues on inflation and monetary support.