The major averages were mixed Tuesday, as the U.S. and China resumed trade talks and investors awaited key updates from the Federal Reserve. The Dow fell 23 points, while the S&P 500 ticked up 0.1%. The Nasdaq Composite outperformed, ending the session 0.5% higher amid strength from FAANG stocks.
Materials stocks lagged, with Dow Inc. falling 1.3% after German chemical maker BASF issued a pessimistic forward outlook amid lingering trade concerns. The Consumer Staples group also underperformed, with PepsiCo declining 0.6% despite topping analyst profit projections in its quarterly report this morning. In M&A news, Acacia Communications jumped more than 35.0% after agreeing to a $2.6 billion takeover offer from Cisco Systems.
Treasuries weakened, with the yield on the benchmark 10-year note rising one basis point to 2.06% ahead of key central bank updates tomorrow. The Federal Reserve will release the minutes from its June policy meeting tomorrow afternoon at 2 p.m. ET, while Fed Chair Jerome Powell is also scheduled to appear for his semi-annual testimony before Congress Wednesday and Thursday. On the data front, a report this morning showed small business optimism slipped modestly from a seven month high in June. Meanwhile, the Jobs Openings and Labor Turnover Survey (JOLTS) revealed U.S. job decreased more than expected for a second-consecutive month in May.
In commodities, WTI crude oil added 0.5% to finish at $57.96/barrel amid continued tensions between the U.S. and Iran. Gold eased 0.1%, the fifth consecutive daily decline for the yellow metal, to finish at $1399.00/ounce.
