Stocks finished lower Tuesday as investors awaited further trade developments and central bank updates. The Dow fell 173 points, halting a three-day winning streak. The S&P 500 lost 0.8%, snapping its only back-to-back gains of 1% or more this year. The Nasdaq Composite was down 0.7%.
Ten of 11 S&P 500 sectors closed in negative territory, with the Consumer Discretionary sector the only group to eke out a gain. Financials led decliners, sliding 1.4% as Treasury yields resumed their descent. On the earnings front, retailers were in focus. Home Depot climbed 4.4% after profits topped analyst estimates. TJX Companies finished slightly lower following disappointing quarterly sales results. Kohl’s retreated 6.9% after the department store’s comparable-store sales drop was worse than consensus expectations. Medtronic rallied 2.6% after the medical device company raised its full-year forecast and exceeded Wall Street earnings and revenue projections.
On the data front, there were no economic releases of note Tuesday. Market participants look ahead to Wednesday’s release of the latest Federal Reserve meeting minutes, as policymakers reduced interest rates for the first time in a decade last month. Further, Fed Chair Jerome Powell is scheduled to deliver remarks Friday at the annual central bank summit in Jackson Hole, Wyoming. Treasuries advanced Tuesday, sending the yield on the 10-year note down six basis points to 1.54%. In commodities, WTI crude dipped 0.2% to $56.34/barrel, while COMEX gold rose 0.3% to $1,504.60/ounce after dropping the most in a month on Monday. The U.S. dollar eased from its highest level of the year.