S&P dips as investors eye key level

Credit: Reuters Studio
Published on March 5, 2019 - Duration: 01:12s

S&P dips as investors eye key level

The S&P 500 dipped in a choppy session Tuesday.

As Fred Katayama reports, investors digested posititive retailer earnings and economic data but eyed a key resistance level.

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S&P dips as investors eye key level

U.S. stocks searched for direction in a choppy session Tuesday after suffering their worst drop in more than a month.

Stocks finished near where they began.

Investors digested positive retail earnings and economic data while eyeing a key resistance level on the S&P 500.

Weatherbie Capital co-chief investment officer, George Dai: SOUNDBITE: WEATHERBIE CAPITAL CO-CHIEF INVESTMENT OFFICER, GEORGE DAI, (ENGLISH) SAYING: "In the short term, we are still cautiously optimistic and we believe that the economoic backdrop is strong, and our companies in terms of their fundamentals continue to be strong." Rallies in retailers Target and Kohl's helped lift consumer discretionary stocks.

Both companies forecast annual earnings that surpass Wall Street's targets.

Papa John's beleaguered shares jumped higher after its embattled founder, John Schnatter, agreed to leave the board and drop his lawsuits against the pizza delivery chain.

But investors Tuesday were more focused on the news they didn't get - the latest on U.S.-China trade negotations U.S. Secretary of State Mike Pompeo said President Donald Trump will reject any deal that was not perfect, but added the United States will keep working on an agreement.

A rally in consumer and healthcare stocks and a pickup in euro zone business growth pulled up the major indexes in Europe U.S. stocks eked out modest gains on Tuesday spurred by some upbeat earnings reports from major retailers and positive economic data.

But the S&P 500 was unable to reclaim the key 2800 level.

Alger Mid Cap Focus Fund co-manager, George Dai: SOUNDBITE: ALGER MID CAP FOCUS FUND CO-MANAGER, GEORGE DAI, (ENGLISH) SAYING: "XXX." In economics news, sales of new homes rose in December to a seven-month high.

And non-manufacturing activity in February surpassed economists expectations.

Retailers Target and Kohl's helped lift consumer discretionary stocks.

Both companies forecast annual earnings that surpass Wall Street's targets.

GE shares dropped.

The conglomerate says weakness in its power unit will likely result in negative cash flow from its industrial businesses this year.

Papa John's beleaguered shares rallied after its controversial founder, John Schnatter, agreed to leave the board and drop his lawsuits against the pizza delivery chain.

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