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May 24, 2022, 4:50 p.m. EDT

Dow ends with slight gain, as Nasdaq drops sharply in tech rout after Snap’s earnings warning

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By Christine Idzelis and William Watts

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Meanwhile, sales of new homes in the U.S. slowed in April to an annual rate of 591,000, tumbling 16.6% from 709,000 in March, according to data released Tuesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Economists polled by The Wall Street Journal had forecast sales to take place at a 750,000 annual rate.

The drop, which came amid high prices and soaring mortgage rates, marked the fourth straight month of declines in new home sales.

“The consumer backdrop is softening,” said David Page, head of macroeconomic research at AXA Investment Managers, in a phone interview Tuesday. The housing market is “always one of the first areas to start to soften in the face of rising rates.”  

See: New home sales plunge as high prices and rising mortgage rates discourage buyers

In U.S. economic data, businesses expanded at the slowest pace in several months , reflecting the effects of high inflation, ongoing supply shortages and some softening in customer demand, according to the S&P flash U.S. purchasing managers indexes.

As for corporate earnings, shares of Abercrombie & Fitch Co. plunged Tuesday after the apparel retailer reported a first-quarter loss and provided a weak outlook.

Consumer discretionary was the second-hardest hit sector in the S&P 500 index on Tuesday, dropping 2.6%, according to FactSet data. The S&P 500’s communication services sector, which includes tech giants Meta, Google parent Alphabet and Twitter, suffered the biggest losses with a 3.7% drop.

Read: Dow, S&P 500 head for worst start to a year since 1970 —- for tech it’s the worst in history

Which companies were in focus?

  • Shares of Dole PLC /zigman2/quotes/228269019/composite DOLE -0.65% fell 11% after the food distributor swung to a first-quarter loss and revenue fell short of estimates.

  • Best Buy Co. /zigman2/quotes/205918291/composite BBY -2.80% shares rose 1.2% after the consumer-electronics retailer reported fiscal first-quarter revenue that beat expectations and lowered guidance. 

  • Abercrombie & Fitch /zigman2/quotes/206677024/composite ANF -6.79% shares plummeted 28.6% after the retailer posted a loss and offered a weak outlook.

How did other assets fare?

  • The yield on the 10-year Treasury note  /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +0.17%  dropped 9.9 basis points to 2.758%, as investors sought safety in government debt. Yields and Treasury prices move opposite each other.

  • The ICE Dollar Index /zigman2/quotes/210598269/delayed DXY -0.08% , which measures the greenback against major currencies, was off 0.3%.

  • In oil futures /zigman2/quotes/211629951/delayed CL.1 +0.11% , West Texas Intermediate crude for July delivery slipped 0.5% to end at $109.77 a barrel. Gold for June delivery rose 1% to settle at $1,865.40 an ounce.

  • Bitcoin  /zigman2/quotes/31322028/realtime BTCUSD -1.10% was up 0.2% at $29,348.

  • In European equities, the Stoxx Europe 600  /zigman2/quotes/210599654/delayed XX:SXXP -0.67%  closed 1.1% lower, while London’s FTSE 100  /zigman2/quotes/210598409/delayed UK:UKX +0.08% edged down 0.4%.

  • In Asia, the Shanghai Composite  /zigman2/quotes/210598127/delayed CN:SHCOMP +0.32%  finished 2.4% lower, while Hong Kong’s Hang Seng Index  /zigman2/quotes/210598030/delayed HK:HSI -0.51% fell 1.7% and Japan’s Nikkei 225 index  /zigman2/quotes/210597971/delayed JP:NIK -0.52% dropped 0.9%.

-Barbara Kollmeyer contributed to this report.

/zigman2/quotes/228269019/composite
US : U.S.: NYSE
$ 9.12
-0.06 -0.65%
Volume: 349,256
Aug. 9, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
3.51%
Market Cap
$870.98 million
Rev. per Employee
$193,940
loading...
/zigman2/quotes/205918291/composite
US : U.S.: NYSE
$ 76.34
-2.20 -2.80%
Volume: 2.15M
Aug. 9, 2022 4:00p
P/E Ratio
8.46
Dividend Yield
4.61%
Market Cap
$17.68 billion
Rev. per Employee
$483,533
loading...
/zigman2/quotes/206677024/composite
US : U.S.: NYSE
$ 17.97
-1.31 -6.79%
Volume: 1.59M
Aug. 9, 2022 4:00p
P/E Ratio
5.51
Dividend Yield
0.00%
Market Cap
$972.62 million
Rev. per Employee
$118,861
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
2.79
+0.0046 +0.17%
Volume: 0.00
Aug. 9, 2022 9:59p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
106.29
-0.09 -0.08%
Volume: 0.00
Aug. 9, 2022 9:49p
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 90.60
+0.10 +0.11%
Volume: 6,060
Aug. 9, 2022 9:49p
loading...
/zigman2/quotes/31322028/realtime
US : CoinDesk
22,892.77
-254.15 -1.10%
Volume: 0.00
Aug. 9, 2022 9:57p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
435.98
-2.95 -0.67%
Volume: 0.00
Aug. 9, 2022 11:03p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,488.15
+5.78 +0.08%
Volume: 536,605
Aug. 9, 2022 4:59p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,247.43
+10.50 +0.32%
Volume: 25.96B
Aug. 9, 2022 3:00p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
19,901.24
-102.20 -0.51%
Volume: 131,697
Aug. 10, 2022 9:44a
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
27,853.77
-146.19 -0.52%
Volume: 0.00
Aug. 10, 2022 10:39a
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