Stocks finished mixed Tuesday, as investors digested corporate updates and economic releases. The Dow extended its winning streak to five days, erasing early session losses to close up 73 points. The S&P 500 ended the session just above the flat line, while the Nasdaq Composite was down less than 0.1%.
Six of 11 S&P 500 sectors closed in positive territory, with Industrials and Energy stocks advancing more than 1%. Technology and Consumer Discretionary shares lagged. In corporate news, Ford fell 1.3% after Moody’s Investors Service downgraded the company’s credit rating into junk territory, citing profit margin and cash flow concerns. Netflix shed 2.2% after Apple unveiled its competing subscription TV service.
On the data front, a gauge of small business optimism fell to a five-month low in August. Separately, the Jobs Openings and Labor Turnover Survey (JOLTS) showed job openings decreased for the second consecutive month in July. Treasuries extended their recent slump amid improved risk sentiment, with the yield on the benchmark 10-year note surging 10 basis points to 1.73%, the highest level in at least four weeks. This followed moves in Germany’s sovereign debt, with the yield on the nation’s 30-year bund briefly climbing into positive territory amid heightened expectations of fiscal stimulus from Europe’s largest economy. WTI crude erased earlier gains to finish down 0.8% to $57.40/barrel.
Market participants also awaited further central bank updates, with the European Central Bank widely anticipated to cut its benchmark interest rate Thursday, while the U.S. Federal Reserve is set to meet next week.