Tuesday trading is over and done, and stocks have rebounded from Monday’s lows.
Here’s what’s coming tomorrow:
US stocks finished higher, rebounding from yesterday’s steep selloff. Here’s how the day went:
It was the best one-day gain for the Dow since April 12, according to Refinitiv.
Dow Inc (DOW), Visa (V) and Caterpillar (CAT) were the best performers in the Dow. Only five Dow stocks ended the day in the red.
In the S&P, CenturyLink (CTL) was the best gainer, climbing 6.7%, while Ralph Lauren (RL) was the biggest loser after reporting declines in North American sales. It closed 3.8% lower.
The US is supposed to have the upper hand on China in a trade war, right? Well you wouldn’t know that from the recent performances of two leading retailers due to report earnings on Wednesday.
Chinese e-commerce giant Alibaba (BABA) is expected to post a year-over-year sales increase of nearly 50% despite trade tension with the US and a slowing Chinese economy. Shares of the Jack Ma-led company have soared 27% in 2019.
But Macy’s (M) continues to struggle, due in large part to competition from Amazon (AMZN), Alibaba and other online retailers. Analysts are forecasting a drop in Macy’s earnings and sales. The stock is down 26% this year, making it the second-worst performer in the S&P 500.
So much for Fortnite, Apex Legends and PlayerUnknown’s Battlegrounds hurting Take-Two Interactive. Even though the maker of Red Dead Redemption reported a sales miss and mixed guidance after the market closed Monday, shares of Take-Two (TTWO) rose 6% Tuesday, making it the top performer in the S&P 500.
Investors appeared to be betting that the company’s outlook was conservative and that revenue and profit for the full year will be better than expected. It also looks like Wall Street is starting to realize that gaming fans are more than happy playing multiple titles on their phones, tablets, consoles and PCs. The success of multiplayer battle-royale games like Fortnite and Apex Legends is a good sign for the whole industry.
To that end, Apex Legends publisher Electronic Arts (EA) was the second-best stock in the S&P 500 Tuesday, rising 5%. And Activision Blizzard (ATVI), the maker of the popular Call of Duty and World of Warcraft franchises, gained 4%.
In the second half of the trading day, stocks continue to forcefully rebound after Monday’s brutal selloff.
The Dow is up more than 300 points, or 1.2%, while the S&P 500 and the Nasdaq are 1.3% and 1.5% higher, respectively.
Dow Inc (DOW), Visa (V) and Caterpillar (CAT) are the top gainers in the Dow. UnitedHealth (UNH) and Johnson & Johnson (JNJ) are the only components in the red.
In the S&P, CenturyLink (CTL) and Electronic Arts (EA) lead the pack. Ralph Lauren (RL), which reported results earlier, is the biggest decliner. It’s down 5.5%.
President Donald Trump called the trade spat with China “a little squabble,” speaking to reporters today.
Of course that spat has escalated significantly over the past week, as both Washington and Beijing raised tariffs on imports. As a result, on Monday, the Dow and the S&P 500 had their worst days since January 3, while the Nasdaq recorded its worst day since December.
In his comments, Trump added that the United States had a very good dialogue with China and that a trade deal could absolutely happen.
The Dow was up 333 points, or 1.3% at midday.
Fashion house Ralph Lauren (RL) is by far the worst performing stock in the S&P 500 this morning. It’s down more than 6%
For context, it’s followed by Gap (GPS), which is down only 1.6%.
Ralph Lauren reported earnings for its fourth quarter and financial year 2019 before the bell.
While the results exceeded expectations, they showed some worrying trends. Revenue from its North American wholesale operations fell 10% year-over-year in the quarter, while overall North American sales dropped 7%, or $708 million.
Correction: A previous version of this post incorrectly identified which index Ralph Lauren is a part of.
About an hour into trading, markets have extended their gains and the Dow is up nearly 200 points.
Only two Dow stocks are lower today, the opposite of yesterday’s trading dynamic.
UnitedHealth Group (UNH) and McDonald’s (MCD) are down, falling 0.6% and 0.2%, respectively.
Coca-Cola (KO) and Visa (V) are the strongest gainers at 2.4% and 2.2%.
In the S&P, telecoms and energy stocks are leading the pack. CenturyLink (CTL) is up more than 4%, followed by Marathon Oil (MRO) at 3.8%.
US stocks opened higher, erasing some of their steep losses from yesterday, when the Dow and the S&P 500 both had their worst day since January 3. The Nasdaq had its worst day since December. All three indexes ended Friday in the green, so their losing streak has been short, albeit drastic.
Shares of Uber (UBER), which has had a dismal first two days of trading, climbed more than 2% at the open.
The business of marijuana may be a lot more lucrative than investors thought. CannTrust, a Canadian producer of medical and recreational cannabis, reported a profit and better-than-expected sales Tuesday morning. The news sent shares of CannTrust (CTST) up 6% in early trading.
Revenue more than doubled and the company said its patient count soared 70% from a year ago to 68,000.
The news could be a good sign for two other cannabis companies reporting results after the closing bell Tuesday: Aurora (ACB), the cannabis company backed by activist investor Nelson Peltz, and Tilray (TLRY), a marijuana producer that is partnering with Sandoz, a subsidiary of Big Pharma firm Novartis (NVS), as well as Anheuser-Busch InBev (BUD).
Take heart, Uber investors. After a horrible first two days of trading since Friday’s initial public offering, Uber (UBER) appears set to open about 2% higher on Tuesday.
Uber rival Lyft (LYFT) is up in premarket trading as well. Whether or not both ridesharing companies can stay in positive territory for the day remains to be seen.
But investors will take any gains they can get. Uber has plunged nearly 18% since the IPO while Lyft has lost more than a third of its value since it debuted on Wall Street in late March.
Bitcoin climbed above $8,000 today, its best level since July last year.
It has now gained almost 28% since Friday afternoon.
The big gains might be great, but analysts are dismissing claims that bitcoin is rallying to replace traditional safe haven assets, such as gold, amid US-China trade war fears.
Nissan (NSANF) has reported plummeting profits and dismal revenues, highlighting the bumpy road ahead without former chief Carlos Ghosn and weakness in the global market for cars.
The company said it sold 5.5 million vehicles worldwide last year, down 4.4%. Shares closed down just under 3% in Tokyo.
This is “rock bottom,” Nissan CEO Hiroto Saikawa said during the earnings presentation, warning that challenges will continue for the foreseeable future.
The worsening trade war between the US and China is causing fresh pain for investors in Asia, but other global markets are looking brighter.
That follows a dismal Monday, when the Dow closed 617 points, or 2.4%, lower. The S&P 500 closed down 2.4% and the Nasdaq lost 3.4%.
Stocks were pummeled by China’s announcement that it will increase tariffs on roughly $60 billion worth of US goods on June 1, retaliating against higher tariffs imposed by Washington last week.
The situation could still deteriorate further: The Trump administration has begun the process to apply tariffs of 25% to the remaining $300 billion worth of goods China exports to the US.
Germany’s Bayer (BAYRY) is in a bad spot after a US jury on Monday awarded more than $2 billion to a couple who claimed that the weedkiller Roundup caused their cancer.
Bayer bought the product’s manufacturer, chemical giant Monsanto, last year.
The huge fine underscores the massive legal payouts Bayer could owe in the US, where the company faces Roundup lawsuits from roughly 13,400 plaintiffs. That exposure recently sparked a shareholder revolt against the company’s management.
Bayer said in a statement that it was “disappointed with the jury’s decision” and would appeal the verdict.
Shares fell 2.7% in early trading Tuesday. They’ve dropped more than 45% in the past year.
Investors are continuing to keep a close eye on Apple (AAPL), which fell into a bear market amid Monday’s sell-off.
Shares dropped 5.8%, about 20% below a recent high in October. They’re up slightly in premarket trading Tuesday.
The drop also came the same day that the US Supreme Court ruled a group of iPhone owners who accuse Apple of violating American antitrust rules can sue the company.
Apple has significant exposure to China, which is a massive market for its smartphones. The trade war could also hit its supply chain.
In January, the company’s announcement that it would miss its sales target in part due to economic weakness in China stunned investors, sending markets lower.
