Wall Street Overview Stocks declined sharply on Tuesday, Dec. 4, amid concerns about a lack of detail in the recent…
Stocks declined sharply on Tuesday, Dec. 4, amid concerns about a lack of detail in the recent US-China trade talks and signals from the bond market that suggested slowing growth in the United States.
The Dow Jones Industrial Average sank 603 points, or 2.34%, to 25.223 ̵
1; at its low for the session the blue-chip index fell 625 points. The S & P 500 was down 2.36%, and the Nasdaq was dropping 2.75%. Leading the Dow lower were Caterpillar Inc. (CAT), JPMorgan Chase & Co. (JPM) and Apple Inc. (AAPL).
Apple slumped 3.7% following a report that the tech giant was considering tactics such as promotional discounts and trade-ins to boost iPhone sales over the key holiday shopping period.
White House officials attempted to add details to the headlines generated from the weekend’s trade summit between Donald Trump and Chinese President Xi Jinping, with economic adviser Larry Kudlow saying he expected certain tariffs on goods heading into China to fall to zero and The nation’s broader commitment to removing barriers to accelerate under Xi’s supervision. Men, forvirring om startdatoen for 90-dagers truce blev vedtatt på lørdag – som The White House said was Dec. 1 while China insisted did not apply until the new year – and the fact that no commitments from either side were put in writing, encouraged some investors to fade Monday’s Wall Street rally.
Meanwhile, investors were rattled Tuesday by a move in U.S. bond markets that could signal slowing growth in the world’s largest economy and tainted the bullish sentiment provided by the apparent breakthrough in US-China trade talks.
The yield on the 10-year note fell to an early September low of 2.937% med det gapet mellem to år og 10-årige resultater, der er mindre end 14 basispoint, det mindste siden juli 2007. Faktisk er en portion af kurven – det udbytteforskel mellem treårige og femårige noter – inverted by 1.4 basis points late Monday for the first time in more than a decade.
At last check, the yield on the 10-year note was 2.915%.
Toll Brothers Inc. (TOL), the luxury homebuilder, said fiscal fourth quarter profit jumped 62% as revenue rose 21% to $ 2.46 billion and homebuilding deliveries gained 12% to 2,710.
Net income was $ 311 million, or $ 2.08 a share, up from $ 191.9 million, or $ 1.17 a share, a year earlier. The stock rose slightly after trading in the red for most of Tuesday’s session.
AutoZone Inc. (AZO) reported fiscal first quarter earnings of $ 13.47 a share, beating analysts’ estimates of $ 12.21. Sales of $ 2.64 billion matched forecasts. A 2.7% increase in domestic same-store sales beat expectations of a 2% rise. The stock rose 5.5%.
Dollar General Corp. (DG) said Tuesday it earned $ 1.26 a share in the third quarter on revenue of $ 6.42 billion. Wall Street expected the discount retailer to post earnings of $ 1.26 a share on revenue of $ 6.39 billion.
Shares of Dollar General fell 7.9% after the company reduced its 2018 earnings outlook to $ 5.85 to $ 6.05 a share from previous guidance of $ 5.95 to $ 6.15 .
RH (RH), formerly known as Restoration Hardware Holdings Inc., soared 8.7% after the high end home furnishing retailer reported third quarter earnings that smashed expectations.
Cannabis company Cronos Group Inc. (CRON) jumped 6.6% after it confirmed it had received takeover interest from cigarette maker Altria Group Inc. (MO).
Cronos, in a statement late Monday, said it was “engaged in discussions” with Altria but that “no agreement has been reached with respect to any such transaction and there can be no assurance such discussions will lead to an investment or other transaction involving the companies. “