By Alex Veiga and Damian J. Troise

Updated 5:04 pm ET

Stocks ended broadly lower on Wall Street Tuesday as trading turned wobbly a day after the market notched its biggest jump in more than five weeks.

The S&P 500 fell 1% after having been up by 0.4% in the early going. Losses in banks, health care stocks, and household goods companies accounted for a big portion of the selling. A late-day slide erased early strength in technology stocks and companies that rely on consumer spending.

Bond yields mostly fell and the price of gold rose, signs that investors were feeling cautious.

“Today is a little bit of a pause day after a significant rally,” said Eric Freedman, chief investment officer at U.S. Bank Wealth Management.

Investors are betting that the economy and corporate profits will begin to recover from the coronavirus pandemic as the U.S. and countries around the world slowly open up again. However, concerns remain that the relaxing of stay-at-home mandates and the reopening of businesses could lead to another surge in infections, potentially ushering in another wave of shutdowns.

The S&P 500 lost 30.97 points to 2,922.94, snapping a three-day winning streak. The Dow Jones Industrial Average fell 390.51 points, or 1.6%, to 24,206.86. The Nasdaq composite dropped 49.72 points, or 0.5%, to 9,185.10. The Russell 2000 index of small-company stocks gave up 25.97 points, or 1.9%, to 1,307.72.

Wall Street kicked off the week with a bang, as optimism about a potential vaccine for COVID-19 and hopes for a U.S. economic recovery in the second half of the year pushed stocks sharply higher Monday, reversing all of the market's losses so far this month. Tuesday's selling cut into some of those gains. The S&P 500 is now down 13.7% from its all-time high in February.

Investors are focused on gauging the risk for a second or third wave of coronavirus cases as more swaths of the U.S. reopen for business.

“As long as we have a supportive Fed, a responsive legislative branch that is at least open to considering more stimulus, and we see openings occur on a measured, but consistent basis, we still think there’s still basis for this market to be propelled higher,” Freedman said.

Still, quarterly results from big retailers Tuesday underscore the challenges companies face as long as the outbreak weighs on consumers and compels government officials to mandate restrictions on commerce. Companies that have been able to remain open or effectively amplify their e-commerce business have been able to fare far better than those that have had to temporarily close doors.

Walmart reported a 74% surge in fiscal first-quarter sales as people stocked up on crucial supplies while sheltering in place due to the coronavirus. Its earnings fell as it spent $900 million in additional compensation for workers, but still topped Wall Street's forecasts. Its shares initially headed higher but finished 2.1% lower.

Meanwhile, Kohl’s, whose stores have been closed during the outbreak, fell 7.7% after reporting that it swung to a $541 million quarterly loss as its revenue sank more than 40%.

Traders also hammered shares in Home Depot after the home improvement supply chain reported quarterly results that fell short of Wall Street's estimates. While the company benefited from a surge in homeowners rushing to buy essential supplies, increased spending on employee compensation and other costs related to the coronavirus dragged on its profits. The stock fell 3%.

“Investors have been looking for companies and sectors that could do well in the current environment,” said Sal Bruno, chief investment officer of IndexIQ. “Looking forward, where does that continued leadership come from?”

The Commerce Department said residential construction ground breakings fell in April to their lowest level in five years. But building permits, a gauge of potential future construction activity, fell less than analysts had expected. That helped push several homebuilder stocks higher. Beazer Homes USA led the pack, surging 5.9%.

Oil prices ended mixed, though they remained above $30 a barrel. Benchmark U.S. crude oil for June delivery rose 68 cents, or 2.1%, to settle at $32.50 a barrel. July delivery of Brent crude oil, the international standard, fell 16 cents, or 0.5%, to $34.65 a barrel.

Prices have firmed up as oil-producing nations cut back on output and as the gradual reopening of the economies around the globe helps spur demand, which crashed earlier this year due to widespread travel and business shutdowns related to the coronavirus. Crude oil started the year at about $60 a barrel.

Bonds yields mostly fell. The yield on the 10-year Treasury note, a benchmark for interest rates on many consumer loans, slid to 0.68% from 0.74% late Monday.

France’s CAC 40 lost 0.9%, while Germany’s DAX inched up 0.1%. Britain’s FTSE 100 dropped 0.8%. Markets in Asia finished higher.

Share:
More In Business
Gaming Industry Levels Up as Sony Acquires Bungie for $3.6 Billion
The video game industry has seen monumental growth the past few years - with an increasing amount of companies jumping head first into the space. In January alone, Microsoft announced its plan to acquire Activision Blizzard, game publisher Take-Two agreed to buy Zynga, and most recently, Sony announced it has agreed to buy game developer Bungie for $3.6 billion. Tobias Batton, CEO and founder of Ex Populus, joined Cheddar Movers to discuss the surge in M&A activity in the gaming space.
Facebook Parent Meta Slips on Disappointing Q4 Earnings
Facebook parent Meta reported disappointing results in its first quarterly earnings report since rebranding to focus on the metaverse. The tech giant delivered mixed results with quarterly profit falling well below Wall Street expectations. Shares plunged more than 20 percent in after hours trading as a result. Martin Garner, COO of CCS Insight, joined Cheddar Movers to break down the company's results.
Super Group Lists on NYSE as Sports Betting Heats Up
Super Group, the company behind leading global online sports betting and gaming businesses Betway and Spin, has landed on Wall Street. The company went public via SPAC with Sports Entertainment Acquisition Corp., and now lists on the NYSE under the ticker symbol 'SGHC.' This debut comes as the U.S. sports betting market continues to heat up with more and more states legalizing the practice. Eric Grubman, chairman of Super Group, joined Cheddar to discuss.
Miami Wants to Become Crypto Capital of the World
Miami wants to be the crypto capital of the world. Mayor Francis Suarez has gone all in on the blockchain, even accepting one of his first paychecks in Bitcoin, hosting one of the world's largest digital cryptocurrency conferences, and marketing Miami as a great place for tech experts to work. Maja Vujinovic, managing director of OGroupLLC, joined Cheddar's Fast Forward to discuss Miami's enthusiasm toward crypto, some of the potential risks that entails, and where the city might be heading when it comes to the crypto takeover.
Miami Booms as Tourist Destination, Despite Headwinds from Pandemic
Like so many other cities, Miami experienced a tourism boom over the summer after vaccines were distributed. But, the Omicron variant has thrown the travel industry for a loop. David Whitaker, president and CEO of the Greater Miami Convention and Visitors Bureau, joined Cheddar to discuss the city as a tourist destination, and how it has handled headwinds from the pandemic.
Miami Real Estate Market Explodes in Popularity During Pandemic
Miami's real estate market has boomed since early 2020, thanks to an overall strong housing market, remote work, and no income tax as incentives. The city is preparing to welcome even more residents as people relocate to warmer climates to work from home. Garrett Derderian, director of market intelligence at SERHANT, joined Cheddar to discuss the Magic City's red hot market.
Rockstar Unveils Unplugged New Hemp Seed Oil-Infused Drink, MTV Partnership
Rockstar Energy, a subsidiary of Pepsico, unveiled its new beverage brand, Rockstar Unplugged, changing up the energy drink formula with hemp seed oil as an ingredient. PepsiCo Energy CMO Fabiola Torres joined Cheddar News to talk about how the product promotes “good vibes” and allows consumers to unwind and discuss partnering with "MTV Unplugged" for a concert series. "We couldn't find a better partnership that MTV," she said. "MTV Unplugged has been such an iconic proposition … and we believe that we're the right partners because the insight of our proposition for Rockstar Unplugged comes from music.
NFL Awards $1 Million to Study Impact of Cannabis and CBD on Pain Management
Eight months after the National Football League announced $1 million in research into cannabinoids, the NFL-NFLPA Joint Pain Management Committee has awarded the funding to two teams of medical researchers at the University of California San Diego and the University of Regina. The NFL says the studies will investigate the effects of cannabinoids on pain management and neuroprotection from concussion in elite football players, respectively. Cheddar correspondent Chloe Ailello spoke with Jeff Miller, the executive vice president of communications, public affairs, and policy for the NFL, about the studies, as well as the recent lawsuit filed against the NFL by former Miami Dolphins head coach Brian Flores. "Maybe we can learn things from other alternative pain approaches that are going to benefit our player population and then sports medicine as a whole," Miller said.
Load More