U.S. stocks closed on a mixed note Tuesday, as investors stayed on the sidelines a day after a rally inspired by upbeat manufacturing data out of China and the U.S.
What are major indexes doing?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -4.06% fell 79.29 points, or 0.3%, to 26,179.13, weighed down in large part by a weak earnings report from Walgreens Boots Alliance Inc. /zigman2/quotes/203410933/composite WBA -3.66% . The S&P 500 index /zigman2/quotes/210599714/realtime SPX -3.37% rose 0.05 point to 2,867.24, while the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -3.79% rose 19.78 points, roughly 0.3%, to 7,832.
What’s drove the market?
Investors took a bit of a breather Tuesday, after a Monday rally that saw the Dow rally 301 points, or 1.2%, while the S&P 500 rose 1.1% and the Nasdaqgained 1.2%. Stocks got off to a strong start after a purchasing index reading for China pointed to the first expansion in activity in the country’s manufacturing sector in four months, which was followed by a stronger-than-expected reading for the Institute for Supply Management’s U.S. manufacturing index.
Data out Tuesday on durable-goods orders, however, helped temper optimism, after the Commerce Department said they fell 1.6% in the month of February, while a key gauge of business investment also fell by 0.1%, the third decline in four months.
Investors also kept an eye on the Treasury market. A closely watched measure of the yield curve — the spread between the yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% and the 3-month Treasury bill /zigman2/quotes/211347046/realtime BX:TMUBMUSD03M 0.00% — turned negative, or inverted, on March 22. Such an inversion is viewed as a reliable warning of a potential recession a year or more in the future.
After rising for three consecutive sessions, Treasury yields retreated 1.8 basis points to 2.478%, as investors worried about rising uncertainty surrounding Britain’s planned exit from the European Union.
The U.K. parliament failed for a second time Tuesday to win a majority for an alternative option to Prime Minister Theresa May’s rejected Brexit agreement, raising the chances that the U.K. could leave the European Union with no deal in place, a potentially destabilizing event for the European and global economies.
What shares were in focus?
Shares of Walgreens closed 12.8% lower, after the drugstore chain reported second-quarter earnings that fell short of Wall Street expectations, while cutting its full-year outlook.
Shares of rival CVS Health Corporation /zigman2/quotes/209664499/composite CVS +0.50% appeared to fall in sympathy, moving down 3.8% Tuesday.
Lamb Weston Holdings In c. /zigman2/quotes/205501174/composite LW -2.70% stock rose 0.6%, after the frozen-potato company reported third-quarter earnings and sales that beat expectations and raised its full-year guidance.