The Nasdaq and S&P 500 finished the day slightly lower
Stocks were mostly higher for the majority of the day Tuesday, as investors returned from the holiday weekend filled with optimism, thanks to dropping Covid-19 cases and higher vaccination rates. The Dow added 45 points -- notching its fourth-consecutive daily win, while the S&P 500 nearly touched its record high before settling just below breakeven. The two benchmarks cut some of their earlier gains, as inflation fears pressured prices lower. Meanwhile, the Nasdaq felt the weight of the troubled tech sector for most of the day, but also finished less than 0.1% lower.
Reopening plays in the travel and hospitality industries were in focus today. Investors were encouraged by an update from the Transportation Security Administration (TSA), which showed a massive increase in air travel over Memorial Day weekend from a year ago. In fact, volumes came in at nearly six times what they were in 2020, though these numbers are still lagging behind what was reported in 2019. Energy stocks also gained, as oil surged to a two-year high to kick off the new month.
Continue reading for more on today's market, including:
- Cloudera stock skyrocketed after a billion-dollar acquisition.
- This marijuana giant took a hit after its dismal quarterly report.
- Plus, movie theater stock eyes comeback; MRNA applies for full vaccine approval; and delving deeper into inflation.
The Dow Jones Average (DJI - 34,575.31) added 45.9 points, or 0.1% for the day. Boeing (BA) led the Dow components with a 3.1% rise, while Johnson & Johnson (JNJ) paced the laggards, falling 2.2%.
Meanwhile, the S&P 500 Index (SPX - 4,202.04) fell 2.1 points, or 0.05% for the day. The Nasdaq Composite (IXIC - 13,736.48) shaved 12.3 points, or 0.09% for the day.
Lastly, the Cboe Volatility Index (VIX - 17.90) added 1.1 point, or 6.8% for the day.
- The Supreme Court rejected Johnson & Johnson's (JNJ) appeal to undo a $2.1 billion damages award against it over asbestos in talc powder products. (CNBC)
- Coinbase (COIN) just announced that it's signed an agreement with Apple (AAPL) and Google (GOOG) allowing customers to use the crypto exchange's branded debit card in both company's wallet applications. (MarketWatch)
- Cinemark stock climbed as North American ticket sales surged during Memorial Day weekend.
- Moderna stock announced it was applying for full FDA approval of its Covid-19 vaccine.
- The latest Schaeffer's Market Mashup dives into inflation and volatility spikes.
Oil Prices Log Two-Year High on OPEC+ Decision
Oil prices were higher on Tuesday to notch an over two-year high. The surge came after the Organization of the Petroleum Exporting Countries and their allies (OPEC+) stuck to its plan of slowly upping oil production through July, as demand growth outpaces supply gains. As a result, July-dated crude added $1.40, or 2.1%, to settle at $67.72 per barrel.
Gold prices were slightly lower, on the other hand, though they managed to stay above the significant $1,900 level. Upbeat manufacturing data and a rise in U.S. Treasury yields put pressure on the commodity, and in response, August-dated gold fell 30 cents, or 0.02%, to settle at $1,905 an ounce.