Liz Ann Sonders, chief investment strategist at Charles Schwab, joins Barron’s markets editor Ben Levisohn, Barron’s reporter Carleton English and Barron’s associate editor Jack Hough to discuss which economic indicators investors should watch for.
U.S. equity markets fell sharply Tuesday as sliding oil prices weighed on investor sentiment and the Senate prepared to extend more relief for small businesses after a stalemate that left some owners facing ruin.
Continue Reading Below
The Dow Jones Industrial Average tumbled 387 points, or 1.6 percent, in the opening minutes of trading. The S&P 500 and Nasdaq Composite each dropped by the same percentage.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 23030.54 | -619.90 | -2.62% |
| SP500 | S&P 500 | 2747.12 | -76.04 | -2.69% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8273.807023 | -286.92 | -3.35% |
The early selling comes as West Texas Intermediate crude oil remained under pressure after a historic selloff pushed prices into negative territory for the May contract, which expires on Tuesday. The June contract, the most active, plunged 28 percent to $14.66 a barrel on Tuesday after falling as much as 42 percent in overnight trading.
The epic selloff in oil continues to weigh on oil majors Exxon Mobil and Chevron, which were two of the three biggest Dow decliners on Monday. Other oil companies such as Hess Corp. and Phillips 66 were also in the crosshairs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORPORATION | 41.62 | +0.44 | +1.06% |
| CVX | CHEVRON CORP. | 82.51 | -1.06 | -1.27% |
| HES | HESS CORPORATION | 35.62 | -0.31 | -0.86% |
| PSX | PHILLIPS 66 | 57.12 | -1.00 | -1.72% |
Meanwhile, Senate Minority Leader Chuck Schumer, D-NY, said the chamber has reached a deal to extend hundreds of billions of dollars of aid to small businesses and he expects the measure to pass on Tuesday.
On the earnings front, Dow components Coca-Cola and Travelers reported their quarterly results.
Coca-Cola Co. posted better-than-expected top- and bottom-line results but warned volumes have plunged 25 percent since the beginning of April as customers including restaurants, movie theaters and amusement parks have temporarily closed due to COVID-19.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KO | COCA-COLA COMPANY | 46.51 | -0.03 | -0.05% |
| TRV | THE TRAVELERS COMPANIES INC. | 105.95 | +4.17 | +4.10% |
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 113.64 | -6.77 | -5.62% |
Insurance provider Travelers Corp. said quarterly profit fell 25 percent from a year ago to $600 million as catastrophe losses climbed.
Elsewhere, International Business Machines said revenue dipped 3.4 percent to $17.57 billion in the final quarter under CEO Ginni Rometty. The computer-solutions provider withdrew its 2020 guidance due to uncertainty caused by COVID-19.
Netflix Inc. and Chipotle Mexican Grill are both set to release their quarterly results after the closing bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 431.15 | -6.34 | -1.45% |
| CMG | CHIPOTLE MEXICAN GRILL INC. | 788.15 | -20.58 | -2.54% |
| SJM | J.M. SMUCKER CO. | 119.09 | -2.53 | -2.08% |
| BYND | BEYOND MEAT INC. | 84.55 | +5.43 | +6.86% |
Food producer J.M. Smucker raised its profit and sales outlook amid increased demand as consumers load up on groceries amid “stay-at-home” orders.
Beyond Meat shares surged after the company announced its products will be available at Starbucks locations in China beginning this week.
U.S. Treasurys rallied, pushing the yield on the 10-year note lower by 5.9 basis points to 0.567 percent.
In Europe, Germany’s DAX paced the decline, down 3.34 percent, while France’s CAC and Britain’s FTSE were weaker by 3.2 percent and 2.5 percent, respectively.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Markets were lower across Asia, with Hong Kong’s Hang Seng falling 2.20 percent, Japan’s Nikkei shedding 1.97 percent and China’s Shanghai Composite sliding 0.90 percent.
