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April 2, 2019, 4:24 p.m. EDT

Dow industrials dragged lower by Walgreens as S&P, Nasdaq eke out modest gains

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By Chris Matthews and William Watts, MarketWatch

By Chris Matthews and William Watts, MarketWatch


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Shares of Walgreens Boots fell 12.8% on Tuesday

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.

Read: Why the world’s biggest bond investor is dismissing the yield curve’s recession warning

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.

/zigman2/quotes/210598065/realtime
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21,636.78
-915.39 -4.06%
Volume: 591.33M
March 27, 2020 5:12p
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/zigman2/quotes/203410933/composite
US : U.S.: Nasdaq
$ 44.00
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P/E Ratio
10.83
Dividend Yield
4.16%
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$38.98 billion
Rev. per Employee
$380,198
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/zigman2/quotes/210599714/realtime
US : S&P US
2,541.47
-88.60 -3.37%
Volume: 3.59B
March 27, 2020 5:12p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
7,502.38
-295.16 -3.79%
Volume: 3.45M
March 27, 2020 5:16p
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.68
0.00 0.00%
Volume: 0.00
March 27, 2020 5:02p
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/zigman2/quotes/211347046/realtime
add Add to watchlist BX:TMUBMUSD03M
BX : Tullett Prebon
0.0025
0.00 0.00%
Volume: 0.00
March 27, 2020 5:03p
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/zigman2/quotes/209664499/composite
US : U.S.: NYSE
$ 58.60
+0.29 +0.50%
Volume: 15.03M
March 27, 2020 6:30p
P/E Ratio
11.53
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3.41%
Market Cap
$76.42 billion
Rev. per Employee
$659,586
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/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 57.25
-1.59 -2.70%
Volume: 1.98M
March 27, 2020 6:30p
P/E Ratio
16.59
Dividend Yield
1.61%
Market Cap
$8.36 billion
Rev. per Employee
$501,097
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