Stocks opened in negative territory Tuesday and stayed there through the close. Another down day for mega-cap tech giant Apple (AAPL) created headwinds for the main indexes, as did anxiety ahead of Federal Reserve Chair Jerome Powell's two-day congressional testimony and Friday's jobs report.
At the close, the Dow Jones Industrial Average was down 1% at 38,585, the S&P 500 was 1% lower at 5,078, and the Nasdaq Composite was off 1.7% at 15,939.
Apple stock lost another 2.8% Tuesday, bringing its year-to-date loss to 11.6%. Today's slide came after a report from Counterpoint Research indicated Chinese smartphone sales were down 7% year-over-year through the first six weeks of 2024.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sales for Apple's iPhones, specifically, were 24% lower than the year prior amid "stiff competition at the high end from a resurgent Huawei," as well as "aggressive pricing from the likes of OPPO, vivo and Xiaomi," said Mengmeng Zhang, senior analyst at Counterpoint Research, in the press release. China accounted for more than 17% of Apple's total revenue in its December quarter.
Here at home, Apple is facing a potential class-action lawsuit over its iCloud storage service.
Target has its best day of the year after earnings
In other single-stock news, Target (TGT) shot up 12% – marking its best day since November 15 when it surged 17.8% – after the discount retailer reported earnings. In its fourth quarter, TGT disclosed higher-than-expected earnings of $2.98 per share on $31.9 billion in revenue. Additionally, its operating income margin was 5.8% vs 3.7% in Q4 2022.
Still, Christina Hennington, chief growth officer at Target, warned in the company's earnings call that there are "stubborn pressures impacting families and retailers." Consumers, Hennington adds, are feeling "stretched" and are "having to make trade-offs to meet their needs of their families, while sprinkling in the occasional luxury."
Powell testimony, jobs data on deck
Meanwhile, investors are looking ahead to Powell's appearance on Capitol Hill, with the Fed chief set to testify Wednesday morning in front of the House Financial Services Committee. On Thursday, he'll appear before the Senate Banking Committee.
And on Friday, the February jobs report is due out. Bill Adams, chief economist for Comerica Bank, thinks one release on today's economic calendar hints at a "giveback in the February jobs report" vs January's strong reading of 353,000 new jobs added.
Specifically, Adams says a decline in the employment component of the Institute for Supply Management's (ISM) services sector Purchasing Managers Index (PMI), to 48.0 in February from January's 50.5, indicates "a majority of surveyed firms trimmed headcount" last month. Comerica anticipates Friday's payrolls report will show 180,000 new jobs added in February. Economists' average forecast calls for the creation of 200,000 jobs last month.
As for today's headline services PMI, it fell to 52.6% in February from January's 53.4%. In other words, while economic activity in the services sector expanded last month, it did so at a slower pace than what was seen at the start of the year.
Separate data from the Census Bureau released today showed factory orders were down 3.6% month-over-month in January.
Related content
- You Can Now Listen To Audiobooks On Spotify for $9.99. Is It Worth It?
- Get Two Free Doughnuts from Krispy Kreme on Super Tuesday
- GM Recalls Nearly 820,000 Trucks Over Tailgate Issue
-
Retiring in 2035? Here's What Your First Day Could Look LikeYour 2035 retirement isn't just a date. It's a day in your life. Here's what your future self might do on the first day and how retirement will have changed.
-
Could This Southeast Asian Country Be the Best Place to Retire?This country's vibrant cities, serene beaches and rich heritage make it a hot tourist destination. Its low living costs make it a great place to retire.
-
Timing Your Retirement: A Financial Professional's Guide on When to Say WhenFirst, ask yourself what kind of retirement you want: big and splashy or simple and sweet. Then you can run the numbers to help choose just the right moment.
-
Three Common Social Security Myths in 2025: A Retirement Strategist Explains What You Need to KnowTaxes on benefits haven't been eliminated, and based on current projections, the program isn't going bankrupt. Understanding the truth about Social Security and knowing what you can control can help you better prepare for retirement.
-
Dow Hits New Intraday High: Stock Market TodayValue-hunters with big stakes in a particular component kept one of the main U.S. equity indexes in positive territory.
-
Berkshire Buys the Dip on UnitedHealth Group Stock. Should You?Buffett & Co. picked up UnitedHealth stock on the cheap, with the embattled blue chip one of the newest holdings in the Berkshire Hathaway equity portfolio.
-
Mutual Funds Are About to Get the ETF Treatment. Here's What It Means for InvestorsThe SEC is expected to decide soon whether mutual funds from dozens of providers can be offered as ETF share classes.
-
Thanks to the OBBB, Now Could Be the Best Tax-Planning Window We've Had: 12 Things You Should KnowThe new tax legislation offers unique opportunities to make smart financial moves and save on taxes, especially for people nearing or in retirement with significant savings.
-
Market Rebounds Are Happening Fast: Should You Buy the Dips? A Financial Planner's GuideMarkets are bouncing back faster than ever. For some long-term investors, that could mark a compelling case for systematic investing during downturns.
-
Markets Weigh Earnings and Inflation: Stock Market TodayThe major U.S. indexes struggled Thursday amid a hot inflation reading and seasonal headwinds.
