Stocks close mixed as tech shares fall for the third day in a row
- Stocks whipsawed on Tuesday as tech shares fell for the third straight day.
- The Technology Select SPDR Fund slid as much 1.6% as Monday's tech sell-off continued.
- Apple's pricing announcement for its upcoming streaming service sent shares of Netflix, Disney, and Roku trading lower in the afternoon.
- Oil prices slipped after President Trump fired National Security Adviser John Bolton.
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Stocks were mixed on Tuesday as investors continued to dump tech shares for the third day in a row.
The SPDR Technology Select Sector ETF - which tracks a basket of technology companies including Microsoft and Apple - fell 0.5%. Some of tech's loses were offset by modest gains in energy and materials stocks.
Shares of Netflix, Disney, and Roku sank on Tuesday after Apple announced its streaming service would be priced at $4.99 per month. The figure is lower than Netflix's monthly offer, and what Disney plans to charge for its upcoming streaming service.
Oil prices fell sharply after President Trump announced National Security Adviser John Bolton would be leaving his position in the White House, allaying fears the US might use military action as a diplomatic as tensions continue to rise in Asia and the Middle East.
Investors have also been awaiting a meaningful sign on both trade negotiations between the US and China and the potential path of interest rates among central banks around the world.
Here's a look at the major indexes as of the 4 p.m. close on Monday:
- The S&P 500 rose 0.03%, to 2,979.39.
- The Dow Jones Industrial Average climbed 0.28%, to 26,909.43.
- The Nasdaq Composite slid 0.04%, to 8,084.15.
Shares of Wendy's tanked 13% on Tuesday after the company slashed its profit outlook due to new investments to expand its breakfast offerings across the US. The fast-food restaurant said it now expects adjusted earnings per share to drop by 3.5% to 6.5%, compared to its previous expectations of growth between 3.5% and 7.5%.
Ford's stock dropped as much as 5.2% after Moody's downgraded the carmaker's credit rating to junk status. The credit rating agency said Ford's performance has declined due to a massive restructuring of its business that expected to cost more than $11 billion.
Within the S&P 500, these were the largest gainers:
And the largest decliners:
Real estate also took a hit on Tuesday, falling about 1.4%. Consumer staples fell more than 0.6%, while energy and industrials posted gains exceeding 1%.