U.S. stocks remained stable on Tuesday, hovering near their record levels. The S&P 500 showed little change in morning trading, while the Dow Jones Industrial Average experienced a 0.3% decline of 108 points. The Nasdaq composite, on the other hand, saw a 0.2% increase.
Macy’s reported better-than-expected results for the latest quarter, leading to a 5.7% climb in its stock. The company also announced plans for a reorganization, including the closure of approximately 150 stores and the focus on opening new Bloomingdale’s and BlueMercury locations.
Norwegian Cruise Line Holdings experienced the largest gain in the S&P 500, rising by 14.7%. The company reported healthy customer demand and provided a forecast for higher earnings in the upcoming year.
Lowe’s saw a 3% increase in its stock after reporting better-than-expected profits for the latest quarter. However, the company’s revenue forecast for the upcoming year fell short of analysts’ expectations, and it noted a continued slowdown in DIY projects.
Zoom Video Communications exceeded analysts’ profit forecasts for the last quarter, resulting in a 4.2% increase in its stock. The company also announced a program to repurchase up to $1.5 billion of its stock.
Chevron experienced a 2.3% drop after warning that its pending takeover of Hess may be at risk. Discussions with Exxon Mobil and China National Offshore Oil Corp. regarding a joint operating agreement for a project off Guyana’s shore could impact the merger’s completion. Hess also saw a decline of 3.3%.
Nvidia’s stock dipped by 0.6%, slightly impacting its overall performance. Despite this, the stock has risen by over 50% this year and nearly 240% last year, driven by the market’s interest in artificial intelligence technology.
The S&P 500’s recent rally has been heavily influenced by a few Big Tech companies, including Nvidia. However, strategists at Barclays note that the companies driving this growth are profitable, unlike the dot-com bubble of the past.
Cryptocurrency prices, including Bitcoin, have been on the rise. Bitcoin surpassed $57,000 and has already increased by over a third this year. The availability of new exchange-traded funds that hold Bitcoin has made investing in the cryptocurrency more accessible.
As earnings reporting season comes to a close, the hope is that a strong U.S. economy will support profit growth throughout the year. Reports on long-lasting manufactured goods orders and consumer confidence showed mixed results, with weaker-than-expected orders but a slight decrease in inflation expectations among consumers.
Treasury yields remained relatively steady following the reports, as traders adjust their forecasts for when the Federal Reserve may begin cutting interest rates.
In global stock markets, Asian and European indexes mostly saw gains. Shanghai’s stocks jumped by 1.3%, while Seoul’s stocks declined by 0.8%. Tokyo’s Nikkei 225 remained stable near its all-time high.
Overall, Wall Street held steady near record highs, with various factors influencing individual stock performances.
