Should investors begin to panic?<br>
CFRA Research investment strategist Lindsey Bell, Wall Street Journal columnist Veronica Dagher and Moneymorning.com chief strategist D.R. Barton on why there is market volatility and whether investors should begin to panic.<br>
Equity futures were attempting an overnight turnaround after originally pointing lower.
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Dow Jones futures were higher by 0.03%. The S&P 500 was rising by 0.03% and the Nasdaq Composite was up 0.03%.
U.S. stocks tumbled on Tuesday as surging bond yields and disappointing outlooks from Caterpillar and 3M sent investors stampeding out of equities.
The Dow Jones Industrial Average fell 424.56 points, or 1.74%, to 24,024.13, marking the blue-chip index’s fifth straight day of losses and its longest losing streak in 13 months. The S&P 500 dropped 35.73 points, or 1.34%, to 2,634.56. The Nasdaq Composite was down 121.25 points, or 1.7%, at 7,007.35.
Industrial stocks led the retreat after 3M lowered its 2018 profit outlook, while CAT plunged 6.2% on worries that rising steel prices would crimp profits
“Both Polaris and Caterpillar reported top and bottom line beats. CAT even guided higher for 2018 profit. Both however are selling off while noting that the tariffs will have a negative impact on profits,” said David Kudla, Founder, CEO, and Chief Investment Strategist at Mainstay Capital Management. “Google also beat on earnings and revenue, but the stock was down 5% on increased spending. I wouldn’t be surprised if higher spending and lower margins are a theme with tech companies as regulations ramp up.”
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Two Dow members are out with numbers today: Boeing in the morning and Visa after the closing bell. But the big focus will be Facebook in the afternoon. FB tumbled almost 4% yesterday after higher expenses at Google parent Alphabet raised concerns about profitability for the tech titans.
Earnings will also be reported by Twitter, AT&T and eBay.
Meantime a new 4-year high for the 10-year Treasury note, which crossed above 3% for the first time since January 2014, added to the negative tone on Wall Street.
Economic data released Tuesday morning included a reading on home sales, which surged to a near four-year high. The S&P/Case-Shiller index rose a seasonally adjusted 0.5% and was up 6.3% compared with a year ago in February. U.S. consumer confidence rose to 128.7 in April from 127 in March.
In Asia, Japan’s Nikkei ended the day down 0.3%.
Hong Kong’s Hang Seng was lower by 0.8%.
China’s Shanghai Composite was off 0.4%.
In European trading, London’s FTSE was down 0.42%. Germany’s DAX fell 0.62% and France’s CAC was lower by 0.24%.
FOX Business’ Charles Brady, Leia Klingel and Matthew Rocco contributed to this article.
