Stocks fell Tuesday, with the three major indexes looking for a second straight dip for a main session.
Dow and S& P 500 each fell further below their recent all-time highs. As cyclical travel and leisure stocks, including airlines and cruise lines slid, while Big Tech stocks dipped even as the benchmark 10-year Treasury yield edged lower.
It has been an amazing tug-of-war between growth and value, defensives and cyclicals. Tech has performed phenomenally well over the last three to four weeks. What we 're seeing is a little bit of a movement under the surface, Andrew Smith, Delos Capital Advisors, told Yahoo Finance on Monday.
While the top industries really underperformed from the technology, consumer discretionary perspective, we have looked at industry groups and we 've seen tech hardware do well. He said we 've seen software services continue to do well, he added. And we think that it really is an economic function that the momentum that we 've seen in the V-shaped recession is now going to sink and wane a bit, and we 're going a little bit more growth-y and defensive in the markets.
Despite recent dips, stocks have already reached all-time highs and have already rallied 10.8% for the year-to-date, leading some analysts to speculate that the sentiment may be too hot.
Many of our favorite sentiment gauges are becoming extremely contrarian, which could be a near-term bullish warning, Ryan Detrick, Chief Market Strategist for LPL Financial said in a note Monday. The American Association of Individual Investors Sentiment Survey recently found that bears outnumber bulls by the most since January 2018.
The average put call ratios from the Chicago Board Options Exchange are above their 95th percentile, suggesting that the option markets are a good deal of complacency, he added. The Bank of America Global Fund Manager survey also showed that portfolio managers are putting underweight to cash, implying investors are all-in on the risk on' environment.
Still, a lot of better-than-expected S& P 500 first-quarter earnings figures have, to others, served as justification for the current upward trend of stocks. Of the estimated 9% of the S& P 500 companies that have already presented results for the current financial year, 81% have topped the bottom-line estimates. On Tuesday, companies including Netflix are set to report earnings results after the market close.
Stocks extended during afternoon trading with about an hour left until the closing bell.
The Dow 378 points, or 1.1%, dropped as Nike and Boeing's shares each dropped more than 4.6%. On Tuesday afternoon, utilities, real estate, healthcare and consumer staples were the only sectors to put green in the S& P 500 with the blue-chip index down 1%. The Nasdaq underperformed, dropping 1.4%; 11: 50 a.m.
The term `` self '' refers to the activity of the person doing the homework. Investors dumped equity last week at an impressive clip, with the negative fund flows suggesting the recent drop in equities could continue in the near-term according to an analysis by Bank of America.
Last week marked the fifth biggest weekly net sales by clients in history and the largest since November, wrote the equity strategist Savita Subramanian in a note Tuesday.
Market weakness could continue in the near-term; the subsequent flows were this negative, weekly returns were- 1% on the avg median with negative returns 75% of the time. By type of investor, Bank of America also noted that institutional and hedge fund clients were the last week the only net buyers of equities, while retail clients sold. The hedge funds clients have been buying for the third straight week while the retail clients said that they sold for the eighth straight week.
Here's where the markets were trading after the opening bell was used Tuesday morning: 9: 01 a.m.
ET: Dogecoin spikes before paring gains on 'Dogeday 4 20' The meme-based crypto-share dogecoin jumped on Tuesday before breaking gains and turning negative as investors pushed the stock up on Dogeday 4 20.
Dogecoin dipped as high as$ 0.42 before rising 4% in New York on Tuesday morning to trade around$ 0.38.
The hashtag doge 420 was trending on Twitter Tuesday morning as proponents of the token posted images of Shiba Inu dogs and other memes, and discussions over dogecoin proliferated on message boards like Reddit. It is unclear why the date was designated Dogeday, though some Internet users have drawn links between the token and Weed Day, celebrated annually by weed smokers on 20 April.
Johnson posted first-quarter results and full-year guidance that topped estimates, with some trends seen during the pandemic in consumer health and medical device sales beginning to reverse. The adjusted earnings of$ 2.59 per share grew over the last year, and sales of$ 22.32 billion were better than the$ 21.98 billion expected, according to Bloomberg consensus data.
Worldwide pharmaceutical sales rose 9.6%, driven by double-digit percentage increases in revenue from Stelara and Xarelto drugs. The consumer health category sales fell 2.9%, however, driven mainly by negative prior year comparisons relating to the COVID 19 pantry load in Q 1 2020, mainly in over-the-counter products, the company said.
Similarly, medical device sales, which had been weak during the pandemic as consumers hesitated to get elective procedures grew 8.8%.
Johnson sees adjusted sales of between$ 90.6 billion and$ 91.6 billion and full earnings per share between$ 9.42 and$ 9.57. Procter Gamble posts Q3 fiscal results, says it will increase prices this year. Consumer Products Conglomerate Procter Gamble posted financial third quarter results that exceeded analysts' expectations as demand for home goods remained elevated during the pandemic. Shares were slightly changed in early trading to slightly lower.
Organic revenue rose in the three months ended March 31 driven by a 7% rise in beauty and 4% increase in grooming organic sales.
The stock's core earnings per share of$ 1.26 were ahead of expectations by 7 pennies. The company still expects organic revenue to grow in its current fiscal year between 5% and 6%.
The company also announced plans to raise prices on a variety of products in order to offset increasing input costs, with the decision coming amid elevated concerns from market participants over inflation during the post-pandemic recovery. The company said that it has started the process of introducing price increases on its Baby Care, Feminine Care and Adult Incontinence products in the United States to offset a portion of the impact of rising commodity costs, Procter Gamble said in its earnings statement Tuesday.
P& G said the exact amount of the price increase will vary according to brand and sub-brand in the range of mid-to high single digit percentages and will go into effect in mid-September. Stock futures dip in early trading 7: 07 a.m. ET Tuesday: Here is where the markets were trading as the overnight session began.
Emily McCormick is a reporter for Yahoo Finance; Follow her on Twitter: emily mcck.
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