Bank of America Private Bank CIO Chris Hyzy discusses the market’s reaction to increasing tensions in the Middle East, the Federal Reserve and emerging markets.
Stocks slid at the open Tuesday as investors continue to monitor recent developments in the Middle East.
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U.S. officials remained on alert after a drone attack killed Iranian Gen. Qassem Soleimani. The U.S. Air Force flexed its muscles on Monday, conducting an “elephant walk” of 52 F-35A II Lightning fighter jets.
All three of the major averages traded within 0.4 percent of their respective flat lines and remained within striking distance of all-time highs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 3232.98 | -13.30 | -0.41% |
| I:DJI | DOW JONES AVERAGES | 28620.92 | -82.46 | -0.29% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9043.712754 | -27.75 | -0.31% |
Tesla gained after CEO Elon Musk attended a ceremony at the electric-car maker’s Shanghai Gigafactory celebrating the first delivery of made-in-China vehicles to the general public.
American Airlines was higher following the announcement that the company reached a confidential agreement with Boeing for 737 Max compensation related to the aircraft’s grounding in 2019. The largest U.S. airline will receive payments over several years and give more than $30 million to its 2019 employee profit-sharing program. Boeing shares were also climbing.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 458.37 | +6.83 | +1.51% |
| AAL | AMERICAN AIRLINES GROUP INC. | 27.38 | +0.06 | +0.22% |
| BA | BOEING COMPANY | 333.51 | -0.23 | -0.07% |
Pier 1 Imports was under pressure for a second day after announcing the closing of up to 450 stores as it attempts to stave off a bankruptcy filing. Shares plunged by 16.9 percent on Monday before being halted.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PIR | PIER 1 IMPORTS | 3.97 | -1.20 | -23.23% |
Goldman Sachs was little changed after the firm announced sweeping changes to make its quarterly results more easily compared to its peers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | GOLDMAN SACHS GROUP INC. | 236.34 | +2.40 | +1.02% |
On the commodities front, West Texas Intermediate crude oil was down 1.2 percent at $62.50 a barrel. The energy component is now up just 2.1 percent since a U.S. airstrike killed Iranian Gen. Qassim Soleimani on Thursday.
Elsewhere, gold hit its highest level since April 2013 before pulling back to unchanged at $1,569 an ounce.
Economic data out Tuesday morning showed the U.S.’ trade deficit fell 8.2 percent to $43.1 billion in November, hitting its lowest level since October 2016. The U.S.’ deficit with China plunged by 15.7 percent to $26.4 billion.
U.S. Treasurys were flat with the yield on the 10-year note holding at 1.81 percent.
In Europe, Germany’s DAX advanced 0.6 percent and France’s CAC gained 0.1 percent while Britain’s FTSE was little changed.
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In Asia, Japan’s Nikkei led gains, ending up 1.6 percent, while China’s Shanghai Composite and Hong Kong’s Hang Seng rallied 0.7 percent and 0.3 percent, respectively.
