Day Traders Diary
The S&P 500 (unch) eked out a very narrow victory on Tuesday, closing at a new record high for the third session in a row. The Nasdaq Composite (+0.2%) and the Russell 2000 (unch) also notched new records, and the Dow Jones Industrial Average (+0.1%) finished at its best level since early February.
It was a range-bound day of trading, with the S&P 500 keeping between -0.1% and +0.2%. Seven of eleven sectors finished in the red, but losses were pretty modest. The top-weighted technology sector (+0.2%) was an advancer, helping to mitigate losses from energy (-0.5%), materials (-0.4%), and consumer staples (-0.3%).
As for individual stocks, retail earnings were in focus once again. Best Buy (BBY 77.57, -4.09) tumbled 5.0% after downbeat Q3 guidance overshadowed upbeat Q2 results. Meanwhile, DSW (DSW 32.70, +5.50) spiked 20.2% and Tiffany & Co (TIF 131.07, +1.29) added 1.0% after both companies beat top and bottom line estimates.
Looking at other markets, U.S. Treasuries moved lower, sending yields higher across the curve, with the benchmark 10-yr yield climbing four basis points to 2.88%. Meanwhile, West Texas Intermediate crude futures slid 0.4% to $68.58/bbl, and the U.S. Dollar Index slipped 0.1% to 94.62, testing its August low.
In Washington, Canada came back to the NAFTA negotiating table on Tuesday after the U.S. and Mexico reached a bilateral trade agreement on Monday. President Trump has warned that he could proceed without Canada, but U.S. officials are optimistic that a deal can be reached by the end of the week.
Reviewing Tuesday's economic data, which included Advanced International Trade in Goods and Advanced Wholesale Inventories for July, the S&P Case-Shiller Home Price Index for June, and the Consumer Confidence Index for August:
Looking ahead, investors will receive the second estimate of Q2 GDP, July Pending Home Sales, and the weekly MBA Mortgage Applications Index on Wednesday.