Published: Sun, April 29, 2018
Finance | By Kristine Clayton

How major U.S. stock indexes fared Tuesday

How major U.S. stock indexes fared Tuesday

The Dow rose 59.70 points, or 0.2 percent, at 24,083.83.

The Toronto Stock Exchange's S&P/TSX composite index closed down 75.06 points, or 0.48 per cent, at 15,477.00.

The Nasdaq composite dropped 121.25 points, or 1.7 percent, to 7,007.35.

On Tuesday, bellwether Caterpillar posted earnings and revenue that beat expectations, but the shares fell after the company's CFO said their first-quarter results may have been the "high watermark" for the year.

Rising interest rates should eventually be absorbed into the market, but this doesn't mean the bull market will resume.

Twitter Inc (NYSE:TWTR) reported better-than-expected second-quarter earnings and revenue as daily active users rose 10% year-over-year.

Alphabet shares fell 4.77 per cent, erasing the stock's year-to-date gains as rising expenses and shrinking margins overshadowed the company's better-than-expected profit.

"There is a lot of buzz among strategists about the Fed raising rates three or even four more times this year, which is adding to the nervousness on Wall Street", said Ken Berman, strategist at Gorilla Trades.

But the comments from Caterpillar's executives, as well as from other major companies like 3M and Sherwin-Williams, had investors worrying about whether that growth will show up.

"It's not a mystery why these things are happening", Baumohl said.

Industrial and basic materials companies and technology firms took some of the worst losses. "This market rally for the last nine years has been driven by low interest rates, accommodating monetary policy and excess liquidity", said Oliver Pursche, chief market strategist for Bruderman Asset Management in NY.

THE QUOTE: "U.S. markets were rocked by both bond yields and corporate concerns overnight, seeing only few defensive sectors thriving on the comprehensive S&P 500 index".

Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year. The yield on the 10-year Treasury note rose to 2.99 percent from 2.98 percent. The futures on the United States oil variety WTI dropped its price by 1.14% to 67.86 Dollars per barrel.

Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12.

Later in the day, energy companies got a boost after Exxon Mobil said it is raising its quarterly dividend.

Another market favorite, Amazon, shed 3.6 percent to $1,462.70.

Japan's benchmark Nikkei 225 slipped 0.3 percent to 22,206.51 and Hong Kong's Hang Seng lost 0.8 percent to 30,378.89.

The Dow is down 438.81 points, or 1.8 percent.

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