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Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average closed higher Tuesday after investors moved beyond recession fears sparked by the inverted bond curve.
  • Bed Bath and Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report surged 22% following a report that said a group of activist funds were looking to replace the retailer's board.
  • Shares of Apple  (AAPL) - Get Apple Inc. Report were down slightly after the tech giant unveiled several new services, including Apple TV Plus featuring original content and a news subscription platform called Apple News Plus.

Wall Street Overview

Stocks closed Tuesday as the bond yield curve narrowed and investors moved beyond recession fears.

The Dow Jones Industrial Average closed up 141 points, or 0.6%, to 25,658, the S&P 500 rose 0.72% and the Nasdaq was up 0.71%. 

The U.S. Treasury curve between 3-month bills and 10-year notes remained inverted but the gap has narrowed. The three-month note was yielding 2.468% at last check while the 10-year Treasury note yielded 2.419%.

Housing starts fell 8.7% to a seasonally adjusted annual rate of 1.16 million units last month, the Commerce Department said, the largest percent decline in eight months. Analysts had been looking for seasonally adjusted rate of 1.21 million. Building permits fell 1.6% to a rate of 1.3 million units.

"Even though housing starts came in lower than expected, this may not come as a huge surprise," said Mike Loewengart, vice president of investment strategy at E-Trade Financial. "Housing has been bringing in weak data for some time now, but the tides may be shifting as we look ahead. Mortgage rates are low and with the (Federal Reserve) decision to not move the needle on interest rates in 2019, we could see some positive movement on that end."

The slowdown in global growth has been on everyone's mind, Loewengart added, "so this fundamental economic indicator will become increasingly important for U.S. markets moving forward."

The consumer confidence index dropped to 124.1 from 131.4 in February, the Conference Board said, the second lowest rate in a year. Economists were looking for a reading of 133.

"The economic indicators from the U.S. were disappointing," said David Madden, a market analyst at CMC Markets UK. He said "all the updates point to a slowing economy, which is worrying as traders are already on edge about a recession in light of the recent inverted yield curve."

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TheStreet Recommends

Shares of cruise line company Carnival (CCL) - Get Carnival Corporation Report fell 8.8% to $51.69 after the company cut its 2019 profit forecast. The Miami-based company said that it now expects to earn between $4.35 and $4.55 a share in fiscal 2019, down from its previous estimate of between $4.50 and $4.80 because of higher fuel costs and the impact of a strong dollar.

Shares of Apple  (AAPL) - Get Apple Inc. Report were down 1% to $186.79 a day after the tech giant unveiled a number of new services, including Apple TV Plus featuring original content and a news subscription platform called Apple News Plus, at "It's Showtime" event in Cupertino, California.

Apple is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.

Apple rival Samsung (SSNLF) warned that its first-quarter profit likely would miss estimates. The world's biggest chipmaker cited weaker-than-expected business conditions in memory chips and panel displays. 

CBS Corp. (CBS) - Get CBS Corporation Class B Report and Viacom Inc. (VIAB) - Get Viacom Inc. Class B Report were both on the rise after the New York Post reported that the media giants have resumed merger talks. However, the Post said that picking a CEO to run the company may be a sticking point. CBS climbed 3.9% to $47.33, while Viacom was up 7.6% to $28.33.

McDonald's (MCD) - Get McDonald's Corporation Report will acquire Dynamic Yield in an effort to improve the customer experience. Terms of the deal weren't disclosed, but The Wall Street Journal said McDonald's will pay more than $300 million for the Israeli digital startup company. McDonald's rose nearly 1% to $187.48.

Shares of Bed Bath and Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report  soared 22% to $16.92 following a report that a group of activist funds was  preparing to launch a proxy fight to replace the retailer's board. 

Boeing  (BA) - Get The Boeing Company Report  rose though officials in China moved to suspend safety certifications for the 737 MAX 8, while Airbus SE (EADSY) - Get Airbus SE ADR - Level I Report signed a $34 billion order with Beijing. Boeing has been under pressure following two deadly crashes involving its MAX 8 aircraft. Boeing shares were down slightly to $370.38.  


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