Stock Market Story: U.S. Stocks Hit Intraday Lows After Running Up Too Far, Too Fast
NEW YORK (TheStreet) -- The major U.S. stock markets on Tuesday were consolidating after a rapid run-up over the last two days, despite contending with geopolitical risks and tepid European data.
The S&P 500 (SPY) was down 0.33% to 1,930.54 near intraday lows. The Dow Jones Industrial Average (DIA) was down 0.27% to 16,525.83. The Nasdaq (QQQ) was down 0.42% to 4,382.81. Stocks were pulling back after the S&P 500 recouped 50% of its entire late July decline in two days. The index has jumped 34 to 35 points from its cash opening of around 1,903 on Friday and increased over 50 points from its Friday futures morning low of about 1,890.
"We've gotten a little bit overdone to the upside and now you're seeing a few signs of things stalling out a bit," Greywolf Execution Partners' chief technical analyst Mark Newton explained from the floor of the New York Stock Exchange. "It's tough to think that we can move higher right away without at least seeing a bit of consolidation and/or pullback."Reuters reported on Tuesday that a humanitarian convoy of 280 trucks was heading to eastern Ukraine from Russia, sparking suspicions that Moscow was attempting a military intervention by stealth. The French current account deficit gaped wider and the latest economic confidence index from Germany’s prestigious ZEW economic research center dropped to well below the consensus. The possibility of early U.S. interest rate hikes remained a concern amid the steady flow of better-than-expected economic data. Read More: European Stocks Shrink on Ukraine Uncertainty, French Deficit The Labor Department's Job Openings and Labor Turnover Survey for June rose to 3.3% in June from 3.2% in May, the government reported on Tuesday. The July NFIB Small Business Optimism Index reported an uptick of 0.7 points to 95.7. In company headlines, Amazon (AMZN) is doubling down on its attempt to squeeze Walt Disney (DIS) for price concessions, blocking preorders for Captain America: The Winter Soldier and other DVDs. Disney was slipping 0.55% to $87.02, while Amazon was slightly higher at $319.18. Dendreon (DNDN) was sinking by 35.27% to $1.37 after dropping a liquidity warning bomb in its latest 10-Q filed Monday night. Nuance Communications (NUAN) was dropping 9.86% to $16.32 after the maker of speech-recognition software missed analyst expectations on its third-quarter revenue. Shares of Kate Spade (KATE) were swinging between gains and losses, trading at $38.70 at last check, after the company reported that its net loss narrowed in the second quarter. Shares of Prudential (PUK) were up 3.02% to $46.06 after the London-based financial services company said it will increase its dividend. Read More: Stock Market Today: Markets Finish Well off Intraday Highs --By Andrea Tse in New York Follow @AndreaTTse
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