US close: Stocks mixed as investors turn cautious ahead of data
US stocks finished mixed on Tuesday with markets rangebound as risk sentiment receded ahead of key economic data later in the week.
The Dow fell 0.25%, while the S&P 500 inched 0.17% higher and the Nasdaq gained 0.37%, though gains were limited by data showing the biggest monthly drop in US durable-goods orders in nearly four years.
Stocks have been pulling back over the past few sessions after racing to new highs last week on the back of blockbuster earnings from chip giant and AI poster child Nvidia, which spurred buying across the tech sector.
"Those urging caution point out that the latest leg of the rally has been triggered by FOMO-buying driven by the incalculable future benefits of generative AI," said David Morrison, senior market analyst at Trade Nation. "They say that the rally is being driven by a relatively small number of large corporations which makes the market particularly vulnerable to a shift in sentiment."
All eyes on data
On the macro front, US durable goods orders shrank rapidly at the start of 2024, mainly due to a more than halving in orders for defence aircraft and parts. According to the Department of Commerce, in seasonally adjusted terms durable goods orders dropped by 6.1% in January to $276.65bn, well below the 4.5% decline expected by the market.
In other news, the Conference Board's US consumer confidence index fell to 106.7 in February from a revised print of 110.9 for January, missing the 115 level expected by analysts; while the S&P CoreLogic Case-Shiller US national home price index accelerated to a year-on-year pace of 5.5% in December, after rising by 5.0% during the month before.
Looking ahead, a barrage of closely watched US datapoints will be on tap in the coming days, including GDP, manufacturing PMIs and the all-important personal consumption expenditures inflation gauge on Thursday. Market participants will be closely watching these releases for any hints as to the state of the US economy and for clues as to the potential future path of monetary policy.
Norwegian Cruise Line jumps
Cruise operator Norwegian Cruise Line Holdings surged 20% after guiding to a surprise profit in its first quarter on the back of strong bookings for 2024. The company said it expects to earn 12 cents a share, compared to the 20 cents loss expected by the market. Sector peer Carnival also rose strongly.
Workday shares were down 4% despite the workplace software provider beating profit forecasts and meeting revenue estimates with its fourth quarter.
Macy's finished higher after the retail giant unveiled a new strategic plan along with a mixed set of holiday-quarter figures. The plan, dubbed ‘A Bold New Chapter’, aimed at repositioning it to enhance customer experience and foster growth, and will see the company close about 150 locations over the next three years.
US home improvement retailer Lowe’s was also in favour despite giving a cautious outlook for 2024 as it reported fourth-quarter profits ahead of analysts' expectations. The company said it expects to generate $84bn to $85bn in total sales, slightly lower than current consensus estimates.
Dow Jones - Risers
Walgreens Boots Alliance, Inc. (WBA) $21.63 3.05%
Walt Disney Co. (DIS) $109.42 1.62%
Home Depot Inc. (HD) $375.64 1.07%
Travelers Company Inc. (TRV) $221.88 0.82%
Apple Inc. (AAPL) $182.63 0.81%
Caterpillar Inc. (CAT) $327.68 0.69%
Verizon Communications Inc. (VZ) $39.93 0.60%
Nike Inc. (NKE) $105.15 0.58%
3M Co. (MMM) $92.30 0.52%
American Express Co. (AXP) $217.98 0.47%
Dow Jones - Fallers
Amgen Inc. (AMGN) $278.49 -2.75%
Unitedhealth Group Inc. (UNH) $513.42 -2.27%
Chevron Corp. (CVX) $152.16 -1.48%
McDonald's Corp. (MCD) $293.76 -1.13%
Coca-Cola Co. (KO) $60.34 -0.61%
Intel Corp. (INTC) $42.73 -0.60%
Procter & Gamble Co. (PG) $159.30 -0.57%
Visa Inc. (V) $283.17 -0.34%
Salesforce.Com Inc. (CRM) $299.50 -0.30%
Cisco Systems Inc. (CSCO) $48.31 -0.19%
S&P 500 - Risers
Norwegian Cruise Line Holdings Ltd (NCLH) $19.09 19.84%
Nektar Therapeutics (NKTR) $0.75 11.94%
Carnival Corp. (CCL) $15.91 7.65%
Advance Auto Parts (AAP) $64.75 7.31%
AutoZone Inc. (AZO) $2,947.07 6.66%
Albemarle Corp. (ALB) $128.59 5.82%
Hanesbrands Inc. (HBI) $5.14 5.76%
Kohls Corp. (KSS) $28.60 4.38%
Nordstrom Inc. (JWN) $21.69 4.28%
Under Armour Inc. Class A (UAA) $8.89 4.22%
S&P 500 - Fallers
Perrigo Company plc (PRGO) $27.30 -15.14%
International Flavors & Fragrances Inc. (IFF) $74.51 -3.84%
Sba Communications Corp. (SBAC) $199.95 -3.77%
Henry Schein Inc. (HSIC) $77.85 -3.38%
Hess Corp. (HES) $145.32 -3.09%
Sealed Air Corp. (SEE) $35.03 -2.91%
AES Corp. (AES) $15.10 -2.89%
Amgen Inc. (AMGN) $278.49 -2.75%
Ralph Lauren Corp (RL) $182.60 -2.35%
Unitedhealth Group Inc. (UNH) $513.42 -2.27%
Nasdaq 100 - Risers
NetEase Inc. Ads (NTES) $113.14 5.27%
Qurate Retail Inc. (QRTEA) $1.40 5.26%
Vodafone Group Plc ADS (VOD) $8.78 3.66%
Hasbro Inc (HAS) $50.28 3.31%
Walgreens Boots Alliance, Inc. (WBA) $21.63 3.05%
Micron Technology Inc. (MU) $91.85 2.67%
Netflix Inc. (NFLX) $601.67 2.39%
Seagate Technology Plc (STX) $90.70 2.30%
Dollar Tree Inc (DLTR) $148.90 2.15%
Illumina Inc. (ILMN) $139.76 2.04%
Nasdaq 100 - Fallers
Workday, Inc. (WDAY) $295.05 -3.96%
Trip.com Group Limited (TCOM) $44.32 -3.44%
Henry Schein Inc. (HSIC) $77.85 -3.38%
Amgen Inc. (AMGN) $278.49 -2.75%
Electronic Arts Inc. (EA) $139.50 -2.16%
Adobe Systems Inc. (ADBE) $552.49 -1.43%
Cadence Design Systems Inc. (CDNS) $300.01 -1.21%
Take-Two Interactive Software Inc. (TTWO) $147.94 -1.18%
Broadcom Inc. (AVGO) $1,296.23 -0.99%
Cintas Corp. (CTAS) $628.15 -0.91%