You Shall Not Pass. Stocks failed in their comeback bid Tuesday, with both the Dow Jones Industrial Average and the S&P 500 finishing in the red. Bond yields pulled back, but it’s too early to call the scare over. It was a big day for Google—but not just because of its new products. In today’s After the Bell, we…
…wonder if the Nasdaq’s getting ready to rally; …highlight Pioneer Natural Resources’ rally to the top of the S&P 500; …and explain why PPG Industries tumbled 10%. Time Is On My Side?
The Nasdaq ended its three-day losing streak Tuesday. The S&P 500 fell for a fourth day, but the drop was small…small enough to ignore. But don’t write this off as just another nothing day. Because beneath the surface, there was a ton of angst.
Sure, the Nasdaq Composite ticked up 2.07 points to 7738.02, ending its three-day losing streak. The S&P 500, meanwhile, dipped 0.1% to 2880.34, and the Dow Jones Industrial Average dropped 56.21 points, or 0.2%, to 26,430.57.
But these moves, or lack of them, were being driven by fear, not greed. Sectors that benefit from a stronger economy, like materials and industrials, got hit hard, while investors gravitated back to tech, and scooped up utilities. So this move is less about investors feeling good about the market and more about playing defense.
And even when the market went up, it found a reason to go back down. “The market indices are very frustrating right now,” writes Todd Market Forecasts’ Stephen Todd. “Today, we saw numerous attempts at a rally, but selling always came in.”
Might it be ready to reverse? Even though the Nasdaq outperformed on Tuesday, it has still badly lagged the S&P 500 and