Stocks pared losses but remained lower on trade-war worries. Today’s market bounce so far pales in comparison to Monday’s rebound.
The Dow Jones industrial average was off 1.3% as two components with big exposure to China — Boeing (BA) and Caterpillar (CAT) — fell more than 3%. Boeing gapped below its 50-day moving average and Caterpillar below the 200-day average. DowDuPont (DWDP) was off more than 3% also as it fell below the 50-day moving average.
Boeing gets 13% of its sales from China, according to IBD data. Caterpillar said in its most recent quarterly report that a 44% rise in sales in the Asia-Pacific region was mainly because of strong activity in China.
The S&P 500 and the Nasdaq composite lost 0.7%. The two indexes were down about 1% early on. Like on Monday, indexes bounced off session lows. But today’s move still left sizable losses, while on Monday the Nasdaq finished a fraction higher and the S&P 500 lost only 0.2%.
The small-cap Russell 2000 fell a milder 0.3%. But the Dow utilities average climbed nearly 0.2%. The utility group was one of a handful of groups that were higher as their defensive qualities gained favor. Drugstores, packaged foods and health care services were some others.
Volume was tracking higher compared with the same time Monday. Losing stocks led advancers by 8-to-5 on the NYSE and the Nasdaq.
Among the worst-performing groups Tuesday were some linked to international trade, such as machinery, automakers, steel companies, fertilizers and chemicals.
Netflix (NFLX) was a rare winner. The video streaming service climbed 2% to a new high after three analysts raised their price targets on the stock. They said Netflix is likely to report strong subscriber gains in the second quarter. Netflix is well-extended from a breakout past a 338.92 buy point. It reports earnings July 16.
Several oil stocks were higher in big volume. Diamondback Energy (FANG) roared back above its 50-day line. Mammoth Energy Services (TUSK) and Carrizo Oil & Gas (CRZO) also climbed in heavy volume.
SPDR S&P Oil & Gas Exploration (XOP) is still finding support in a pullback to the 50-day moving average.
FedEx (FDX) was down 2% and still working on a new base. The airfreight company, another big enterprise threatened by the trade row, is reporting earnings after the close.
