Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell sharply Tuesday, losing nearly 800 points for its fourth worst day ever on worries over the U.S.-China trade deal and concerns over economic growth.
- Dollar General Corp. (DG) fell 6.8% after the discount retailer reduced its earnings and sales outlooks for 2018.
- Toll Brothers Inc. (TOL) traded down 1.6% after briefly moving into positive territory. Quarterly profit at the homebuilder jumped 62%.
Wall Street Overview
Stocks ended sharply lower on Tuesday, Dec. 4, amid concerns over a lack of detail in the recent U.S.-China trade talks and signals from the bond market that suggested slowing growth in the United States.
The Dow Jones Industrial Average lost 799 points, or 3.1%, to 25,027, the S&P 500 lost 3.2%, and the Nasdaq fell 3.8%. Leading the Dow lower were Caterpillar Inc. (CAT) , JPMorgan Chase & Co. (JPM) and Boeing Co. (BA) . Goldman Sachs GS fell 3.8% to $184.42, its lowest close since election day, 2016, when Donald Trump won the presidency.
Apple Inc. (AAPL) slumped 4.4% following a report that the tech giant was considering tactics such as promotional discounts and trade-ins to boost iPhone sales over the key holiday shopping period.
White House officials attempted to add specifics to the headlines generated from the weekend's trade summit between Donald Trump and Chinese President Xi Jinping, with economic adviser Larry Kudlow saying he expected certain tariffs on goods heading into China to "fall to zero" and the nation's broader commitment to removing barriers to accelerate under Xi's supervision. However, confusion over the start date for the 90-day truce agreed to on Saturday - which the White House said was Dec. 1 while China insisted didn't apply until the new year - and the fact that no commitments from either side were put in writing, encouraged some investors to fade Monday's Wall Street rally.
The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina. Bob Lighthizer will be working closely with Steve Mnuchin, Larry Kudlow, Wilbur Ross and Peter Navarro.....— Donald J. Trump (@realDonaldTrump) December 4, 2018
Meanwhile, investors were rattled Tuesday by a move in U.S. bond markets that could signal slowing growth in the world's largest economy and taint the bullish sentiment provided by the apparent breakthrough in U.S.-China trade talks.
The yield on the 10-year note fell to an early September low of 2.937%, with the gap between two-year and 10-year yields narrowing to just under 14 basis points, the smallest since July 2007. In fact, one portion of the curve -- the yield differential between three-year and five-year notes -- inverted by 1.4 basis points late Monday for the first time in more than a decade.
At last check, the yield on the 10-year note was 2.91%.TOL) , the luxury homebuilder, said fiscal fourth-quarter profit jumped 62% as revenue rose 21% to $2.46 billion and homebuilding deliveries gained 12% to 2,710.
Net income was $311 million, or $2.08 a share, up from $191.9 million, or $1.17 a share, a year earlier. The stock was up 0.8% after issuing an uncertain outlook.
AutoZone Inc. (AZO) reported fiscal first-quarter earnings of $13.47 a share, beating analysts' estimates of $12.21. Sales of $2.64 billion matched forecasts. A 2.7% increase in domestic same-store sales beat expectations of a 2% rise. The stock rose 6.9%.
Dollar General Corp. (DG) said Tuesday it earned $1.26 a share in the third quarter on revenue of $6.42 billion. Wall Street expected the discount retailer to post earnings of $1.26 a share on revenue of $6.39 billion.
Shares of Dollar General fell 6.8% after the company reduced its 2018 earnings outlook to $5.85 to $6.05 a share from previous guidance of $5.95 to $6.15.
RH (RH) , formerly known as Restoration Hardware Holdings Inc., soared 11% after the high-end home furnishings retailer reported third-quarter earnings that smashed expectations.