Earlier on Tuesday stocks rallied briefly touching record highs before giving up those gains in mixed trading. What piqued the peak on S&P 500 was a pull back led by industrials and energy falling -1.16% and -1.23% respectively. Real estate and healthcare retained earlier gains.
The Dow zipped across the 26,000 mark for the first time in early trading before paring those gains in afternoon trading. The Big Board finished muted dipping -0.03% to 25,796.58. Merck and UnitedHealth led the gainers. UnitedHealth's share price rose +1.86% after reporting earnings doubled in the fourth quarter helped by tax cuts. The healthcare company hiked its full-year profit cast forecast well beyond Wall St expectations. Merck's share price climbed +5.81% after it announced positive late stage trial results for lung cancer treatment.
The S&P 500 was up earlier +0.41%, at 2,797.96 before sliding down 6 points or -0.35% to 2,776.57. Qualcomm was up +4.39% and MGM Resorts International rose +2.85%. Under Armour Cl C and Class A shares took a drubbing down respectively -11.74% and -8.66% after Macquarie downgraded it and cut its price target by 20%. The Nasdaq Composite fell from earlier heights into negative territory down -0.52%, to 7,223.69.
- Dow 25,796.58 -0.03%
- S&P 500 2,776.57 -0.35%
- NASDAQ 7,223.69 -0.52%
- Russell 2000 1,577.01 -0.94%
- NYSE Composite 13,260.83 -0.26%
- Gold $1,339.1 +0.34%
- Oil WTI $63.75 -0.84%
- 10-Year Treasury 2.54 +0.05bps
Metals swings from high to lows
The base metals rally came to a halt on Tuesday retreating from highs in signs investors were taking profits according to analysts and in response to a weaker dollar.
Copper, aluminum, zinc, lead and nickel all fell along with demand and evidence of rising stockpiles.
Copper fell 1.8% on Tuesday to $7,078. Prices Bloomberg says are down 2.3% so far in 2018.
Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas was quoted in Reuters saying, "Copper has had a huge run and so has oil, frankly."
Risk of US government shutdown rises
As negotiations stall over spending and immigration, the chances of a government shut down by the end of the week increases.
President Trump's recent remarks over immigration casts a shadow ove rnegotiations and Democratic hold out for protection of undocumented immigrants brought to the US as children are gumming up negotiations. Trump also rejected a bipartisan deal reached on the Dreamers programme.
The lack of a backup plan waiting in the wings once the deal was scuttled, according to CNN, could increase the chances of shutdown.
Trump has made it clear whom he blames with his tweets.
The Democrats want to shut down the Government over Amnesty for all and Border Security. The biggest loser will be our rapidly rebuilding Military, at a time we need it more than ever. We need a merit based system of immigration, and we need it now! No more dangerous Lottery.— Donald J. Trump (@realDonaldTrump) January 16, 2018
A point disputed by non-partisan political analyst Charlie Cook who tweeted:
Make no mistake about it, when a party holds the White House and majorities in both the House and Senate, they “own” any government shutdown. Things the President has said and done over the last week have only increased the price the GOP has to pay for that ownership.— Charlie Cook (@CharlieCookDC) January 16, 2018