US close: China concerns and choppy dollar hit stocks

US stocks fell on Tuesday after Chinese manufacturing data teamed up with a highly volatile dollar.

By the close, the Dow Jones Industrial Average was down 0.78% to 17,750.91, the S&P 500 was 0.87% lower at 2,063.37 and the Nasdaq composite had fallen 1.13% to 4,763.22.

China’s official manufacturing purchasing managers’ index dropped to 50.1 in April from 50.2 in March, the National Bureau of Statistics revealed, missing economists’ estimates of 50.4. However it was above the 50 level that separates an expansion from a contraction.

The Caixin PMI on China manufacturing contracted further to 49.4 in April from 49.7 in March, according to Markit, below forecasts of 49.9.

“With the Caixin reading focusing on SME’s, it is clear that while large firms are feeling the benefits of government spending and increasingly expansionary policies at the PBoC, the smaller firms remain exposed to slowing growth and trade,” said Joshua Mahony, market analyst at IG.

At the same time, the Reserve Bank of Australia’s decision to cut interest rates to a record low of 1.75% also weighed on sentiment, along with the European Commission's downgrade of its projection for eurozone consumer price inflation in 2016 from 0.5% to 0.2%.

Mike van Dulken, head of research at Accendo Markets, said the RBA's move “will surely only go to fuel fears of another round of ‘currency wars’ as nations fight for that competitive edge via currency weakness”.

Meanwhile, oil prices retreated amid concerns about oversupply. West Texas Intermediate was down 2.46% to $43.68 a barrel while Brent crude was 1.72% weaker at $45.04.

After starting the European session with new multi-month lows, the greenback surged during its native session to record its best-one day performance since August.

EUR/USD shattered the 1.16 mark for the first time in around eight months after Federal Reserve’s Dennis Lockhart suggested June's would be a ‘live meeting’, after rate hike expectations for June had fallen to 12%.

But the volatility continued later, as the dollar swung back to 1.1501.

Among corporate stocks, Pfizer rallied after reporting first quarter revenue that beat analysts’ estimates, bolstered by sales of its new treatments for cancer and its Hospira acquisition.

Estee Lauder slumped after announcing plans to cut its workforce by 900 to 1,200 positions globally as it reported a drop in first quarter profit.

Halliburton was under the cosh as it reported a wider quarterly loss, reflecting a fall in revenue at its North American business due to lower energy prices and charges from its failed tie-up with Baker Hughes Inc.

After eight consecutive days of falls, a first since 1998, Apple's stock rallied after CEO Tim Cook made a strong impression in his intense grilling on the 'Mad Money' show on CNBC, insisting the recent results really represented an "incredible quarter by absolute standards".

There were no major US data releases scheduled on Tuesday.

S&P 500 - Risers
FMC Corp. (FMC) $47.32 +8.48%
Mallinckrodt Plc Ordinary Shares (MNK) $64.84 +6.80%
Fidelity National Information Services Inc. (FIS) $71.29 +6.12%
Vulcan Materials Co. (VMC) $113.73 +4.28%
Endo International Plc (ENDP) $28.13 +3.50%
Owens-Illinois Inc. (OI) $19.20 +3.17%
Williams Companies Inc. (WMB) $19.39 +3.08%
Pfizer Inc. (PFE) $33.70 +2.74%
Alexion Pharmaceuticals Inc. (ALXN) $144.37 +2.73%
CVS Health Corp (CVS) $103.92 +2.43%

S&P 500 - Fallers
Chesapeake Energy Corp. (CHK) $5.80 -11.99%
Freeport-McMoRan Inc (FCX) $12.01 -11.37%
Pitney Bowes Inc. (PBI) $18.93 -9.56%
Southwestern Energy Co. (SWN) $11.92 -6.88%
United States Steel Corp. (X) $18.95 -6.65%
NRG Energy Inc. (NRG) $14.03 -5.84%
Expeditors International Of Washington Inc. (EXPD) $47.39 -5.71%
Marathon Oil Corp. (MRO) $12.79 -5.61%
Alcoa Inc. (AA) $10.35 -5.57%
Harris Corp. (HRS) $76.43 -5.48%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $33.70 +2.74%
Apple Inc. (AAPL) $95.18 +1.64%
Unitedhealth Group Inc. (UNH) $132.46 +0.27%
Procter & Gamble Co. (PG) $81.10 +0.16%
McDonald's Corp. (MCD) $128.40 +0.16%

Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $102.13 -2.15%
JP Morgan Chase & Co. (JPM) $62.56 -1.93%
Chevron Corp. (CVX) $101.32 -1.93%
Caterpillar Inc. (CAT) $76.36 -1.90%
E.I. du Pont de Nemours and Co. (DD) $64.83 -1.88%
Cisco Systems Inc. (CSCO) $26.86 -1.86%
Goldman Sachs Group Inc. (GS) $163.14 -1.83%
Microsoft Corp. (MSFT) $49.78 -1.64%
Visa Inc. (V) $77.19 -1.62%
American Express Co. (AXP) $64.85 -1.26%

Nasdaq 100 - Risers
Endo International Plc (ENDP) $28.13 +3.50%
Alexion Pharmaceuticals Inc. (ALXN) $144.37 +2.73%
Mylan Inc. (MYL) $43.69 +2.29%
Apple Inc. (AAPL) $95.18 +1.64%
O'Reilly Automotive Inc. (ORLY) $268.20 +1.48%
TripAdvisor Inc. (TRIP) $65.83 +1.45%
Walgreens Boots Alliance, Inc. (WBA) $81.46 +1.12%
Liberty Media Corporation - Series C (LMCK) $18.44 +0.71%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $50.14 +0.62%
American Airlines Group (AAL) $34.58 +0.44%

Nasdaq 100 - Fallers
Sba Communications Corp. (SBAC) $99.03 -5.86%
Seagate Technology Plc (STX) $19.44 -5.08%
Tesla Motors Inc (TSLA) $232.32 -3.92%
Western Digital Corp. (WDC) $39.36 -3.65%
JD.com, Inc. (JD) $24.40 -3.52%
Regeneron Pharmaceuticals Inc. (REGN) $371.32 -3.43%
Discovery Communications Inc. Class C (DISCK) $26.58 -3.35%
Discovery Communications Inc. Class A (DISCA) $27.00 -3.33%
Dish Network Corp. (DISH) $47.39 -3.13%
Incyte Corp. (INCY) $72.09 -3.05%