An employee works on the Carmen Boulogne prototype car at the factory of Spanish automobile manufacturer Hispano Suiza in Montmelo, near Barcelona on Apr. 7, 2021.
Pau Barrena/AFP via Getty Images
U.S. stocks rose in early trading Tuesday following the worst trading session in months on Monday.
By midmorning, the
was up 465 points, or 1.4%. The
rose 0.9%, while the and
added 0.3%.
The S&P 500 closed 1.6% lower on Monday in its worst session day since May 12 and all three indexes fell at least 1%.
Investors were buying the dip. Value stocks, which are more sensitive to changes in the economy, were rebounding the most Tuesday after having fallen the hardest Monday. Still, most stocks were seeing at least some gain, with 80% of S&P 500 stocks in the green, according to FactSet data.
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The
was little changed, following a 2.3% decline on Monday, its biggest one-day drop since Dec. 21. The Nikkei 225 closed 1% lower, its fifth consecutive loss. Other Asian indexes including the
also pulled back.
The yield on the 10-year Treasury, which fell nearly 12 basis points on Monday, slipped to 1.15%.
“The concerns are cyclical. They are about the spread of the Delta variant, peak momentum, lower oil (higher U.S. inventories), peak earnings growth and the realization that high inflation is starting to impact consumption, as evident in Friday’s Michigan [consumer sentiment] survey,” said
Sebastien Galy,
senior macro strategist at Nordea Investment.
Analysts at Bespoke Investment Group said, generally speaking, the stocks that were the worst performers during last year’s bear market were the worst performers in Monday’s session—airlines, cruise lines, shopping-center real estate stocks and energy producers.
After the close, streaming service
(ticker: NFLX) and restaurant chain
(CMG) will release results.
(IBM) stock rose 4.6% after reporting a profit of $2.33 a share, beating estimates for $2.29 a share, on sales of $18.75 billion, above expectations for $18.3 billion.
(TRV) stock slipped 0.8% after reporting a profit of $3.45 a share, beating estimates for $2.39 a share, on sales of $8.7 billion, above the expected $7.5 billion.
(SPG) stock gained 3.2% after getting upgraded to Buy from Hold at Stifel.
(RKT) stock dropped 2% after getting downgraded to Underperform from Neutral at Wedbush.
(ED) stock added 0.8% even after getting downgraded to Underweight from Sector Weight at KeyBanc Capital Markets.
Write to Jacob Sonenshine at jacob.sonenshine@barrons.com
