21.05.2024 17:04:32 - dpa-AFX: U.S. Stocks Turning In Lackluster Performance, Major Averages Little Changed

WASHINGTON (dpa-AFX) - Stocks are showing a lack of direction during trading
on Tuesday, with the major averages bouncing back and forth across the unchanged
line following the mixed performance seen in the previous session.

Currently, the major averages are narrowly mixed. While the Nasdaq is down 10.95
points or 0.1 percent at 16,783.92, the Dow is up 36.71 points or 0.1 percent at
39,843.48 and the S&P 500 is up 3.31 points or 0.1 percent at 5,311.44.

The lackluster performance on Wall Street comes as traders take a step back to
assess the recent strength in the markets, which has seen the major averages
climb to new record highs.

Renewed confidence the Federal Reserve will lower interest rates in the coming
months contributed to the advance, but recent comments from Fed officials have
once again created some uncertainty.

While the likelihood rates will be lower by September remains high, the chances
have fallen to 78.3 percent from close to 90 percent last week, according to CME
Group's FedWatch Tool.

Another quiet day on the U.S. economic front may also be keeping some traders on
the sidelines ahead of the release of the minutes of the Fed's latest monetary
policy meeting on Wednesday.

The minutes of the April 30-May 1 meeting may shed additional light on Fed
officials' thinking with regard to the outlook for rates.

Among individual stocks, shares of Peloton Interactive (PTON) have moved sharply
lower after the
exercise equipment and media company announced a global refinancing that
includes an offering of $275.0 million worth of convertible senior notes due
2029.

Auto parts retailer AutoZone (AZO) has also shown a notable move to the downside
after report better than expected fiscal third quarter earnings but weaker than
expected revenues.

On the other hand, shares of XPeng (XPEV) have surged after the Chinese electric
vehicle maker reported fiscal first quarter results that beat analyst estimates
on both the top and bottom lines.

Sector News

Most of the major sectors are showing only modest moves on the day, contributing
to the lackluster performance by the broader markets.

Networking stocks have shown a significant move to the downside, however, with
the NYSE Arca Networking Index falling by 1.3 percent.

The index is pulling back off its best closing level in over three months amid a
steep drop by Palo Alto Networks (PANW), which is under pressure after the
cybersecurity company forecast fiscal fourth quarter revenues and billings
toward the low end of analyst estimates.

Transportation and telecom stocks are also seeing notable weakness, while some
strength is visible among oil service, pharmaceutical and banking stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly
lower during trading on Tuesday. Japan's Nikkei 225 Index and China's Shanghai
Composite Index dipped by 0.3 percent and 0.3 percent, respectively, while Hong
Kong's Hang Seng Index dove by 2.1 percent.

The major European markets have also moved to the downside on the day. While the
French CAC 40 Index has slid by 0.8 percent, the German DAX Index is down by 0.8
percent and the U.K.'s FTSE 100 Index is just below the unchanged line.

In the bond market, treasuries are regaining ground following the pullback seen
over the past few sessions. Subsequently, the yield on the benchmark ten-year
note, which moves opposite of its price, is down by 2.7 basis points at 4.410
percent.



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Copyright RTT News/dpa-AFX
Name WKN Börse Kurs Datum/Zeit Diff. Diff. % Geld Brief Erster Schluss
Dow Jones Industrial Average ( 969420 DOW JONES Indizes 38.589,16 14.06.24 03:36:47 -57,94 -0,15% 38.471,10 38.671,93 38.677,12 38.589,16
NASDAQ COMP. 969427 NASDAQ Indizes 17.688,88 14.06.24 23:16:01 +21,32 +0,12% - - 17.621,18 17.688,88

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