US open: Dow Jones reverses Monday's gains at the bell

By Sharecast News

Sharecast News | 09 Jan, 2024

Updated : 15:31

Wall Street stocks were in the red early on Tuesday following solid gains in the previous session.

As of 1530 GMT, the Dow Jones Industrial Average was down 0.63% at 37,445.76, while the S&P 500 lost 0.40% to 4,744.32 and the Nasdaq Composite came out the gate 0.44% weaker at 14,779.01.

The Dow opened 237.25 points lower on Tuesday, reversing gains recorded a day earlier when investors bought the dip following last week's mega-cap tech selloff.

Comments from Federal Reserve governor Michelle Bowman were in focus early on Tuesday after she said the central bank's interest rate hikes were likely over with but also warned that she was not ready to begin trimming just yet. Bowman highlighted the Fed's progress on reining in inflation through tight policy and said: "Based on this progress, my view has evolved to consider the possibility that the rate of inflation could decline further with the policy rate held at the current level for some time."

Also drawing an amount of investor attention, US politicians struck a 2024 spending deal on Monday, seemingly avoiding a government shutdown and pulling the yield on the benchmark ten-year Treasury note back over the 4% line.

On the macro front, the National Federation of Independent Business' small business optimism index hit 91.9 in December, its highest reading in five months, compared to 90.6 in November and beating consensus expectations for a reading of 90.7. However, 23% of small business owners said inflation was still their single most important problem in operating their business, up one point from the prior month.

Elsewhere, America's trade deficit in goods widened to $90.3bn in November, up from a revised reading of $89.6bn a month earlier, according to an advance estimate from the Census Bureau. Exports declined by 3.6% month-on-month to $165.1bn, dragged down by a drop in sales of industrial supplies, vehicles, other goods, and foods, feeds, and beverages. Meanwhile, imports also dropped, albeit by a softer 2.1% to $255.4bn, weighed down by declines in purchases of consumer goods, industrial supplies, and other goods.

Still to come, Federal Reserve vice chairman for supervision Michael Barr will deliver a speech at 1700 GMT.

No major corporate earnings were slated for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Merck & Co. Inc. (MRK) $119.21 1.56%
Johnson & Johnson (JNJ) $162.28 0.46%
Salesforce.Com Inc. (CRM) $261.34 0.18%
Dowdupont Inc. (DWDP) $0.00 0.00%
Procter & Gamble Co. (PG) $148.68 -0.01%
Visa Inc. (V) $262.51 -0.01%
Walmart Inc. (WMT) $158.16 -0.06%
Unitedhealth Group Inc. (UNH) $535.05 -0.27%
Coca-Cola Co. (KO) $59.89 -0.37%
Home Depot Inc. (HD) $346.61 -0.38%