Stocks closed mixed Tuesday as tech stocks continued their slide while investors contended with supply-chain challenges and President Joe Biden's decision to name Jerome Powell to a second term as Federal Reserve Chairman.
The Dow Jones Industrial Average finished up 194 points, or 0.55%, to 35,813, the S&P 500 rose 0.17%, while the Nasdaq declined 0.50%.
Facebook parent Meta (FB) - Get Facebook, Inc. Class A Report ended down 1.1% and Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report slipped nearly 1% as tech stocks reacted to Biden's announcement to nominate Powell to a second term as Fed chairman.
Meanwhile, the White House announced the release of 50 million barrels of oil from the country’s strategic petroleum reserves stockpile in an effort to tame surging energy costs.
Brent crude contracts for January, the global pricing benchmark, recently were $2.85 higher at $82.55 per barrel.
"Inflation is all over the news," said Louis Navellier, chief investment officer at Navellier & Associates. "Even though economic growth remains strong, the University of Michigan’s consumer sentiment index recently fell to a 10-year low as both inflation and product shortages are making folks angry."
Zoom Video Communications (ZM) - Get Zoom Video Communications (ZM) Report was the Nasdaq's biggest laggard, closing down 14.7% with the shares slumping as growth concerns offset stronger-than-expected third quarter earnings and a robust full-year sales outlook.
XPeng (XPEV) - Get Xpeng Report shares jumped 8.3% after the China-based electric-car maker posted stronger-than-expected third-quarter earnings and said year-end deliveries would top Street forecasts.
Best Buy (BBY) - Get Best Buy Co., Inc. Report tumbled 12% after it posted stronger-than-expected third-quarter earnings but forecast weaker same-store sales over the holiday period as supply chain disruptions ripple through into the retail electronics sector.
Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report shares led the Nasdaq, gaining 9.2% after it posted third-quarter earnings that were largely in line with Wall Street forecasts The chain noted that it planned to roll out price increases that will take its midpoint to $1.25 early next year.