Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI rose on Tuesday after falling sharply on Monday, closing lower for the ninth time in 10 sessions.
- General Electric Co. (GE) - Get General Electric Company (GE) Report was rising 8.5% on Tuesday after it said it would spin off its healthcare business and sell its stake in oil-services company Baker Hughes (BHGE) - Get Baker Hughes, a GE Company Class A Report .
- Walgreens Boots Alliance Inc. (WBA) - Get Walgreens Boots Alliance Inc Report has replaced General Electric in the blue-chip Dow index.
Wall Street Overview
Stocks ended modestly higher Tuesday, June 26, after giving back most of the day's gains in the last hour of trading as investors remained wary of the rising trade rhetoric emanating from Washington and the impact it may have on broader economic growth.
Donald Trump's recent focus on trade and tariffs, and his administration's plans to curb inward investment in the tech sector in order to combat intellectual property theft, sent markets reeling Monday, June 25. On Tuesday, the Dow Jones Industrial Average I:DJI gained 28 points, or 0.12%, to 24,281, the S&P 500 undefined rose 0.22% and the Nasdaq I:IXIC was up 0.39%.
General Electric Co. (GE) - Get General Electric Company (GE) Report jumped 8.1% after it said it would spin off its healthcare business and sell its stake in oil-services company Baker Hughes (BHGE) - Get Baker Hughes, a GE Company Class A Report .
GE said the plans, which follow its ongoing strategic review, will mark a shift in focus toward its power, aviation and renewable-energy businesses and create "a simpler, stronger, leading high-tech industrial company."
The company said it would maintain its dividend until the healthcare unit is separated, but will "adjust" it after that to put it "in line with industrial peers." The announcements came as the former equity market bellwether faces its first day of trading outside of the Dow after having been booted from the benchmark last week by S&P Dow Jones Indices in favor of Walgreens Boots Alliance Inc. (WBA) - Get Walgreens Boots Alliance Inc Report , which fell 1.1%.
Trump said he was "surprised" that motorcycle maker Harley-Davidson Inc. (HOG) - Get Harley-Davidson, Inc. (HOG) Report announced it would move some if its production overseas to avoid tariffs imposed by the European Union in response to the president's trade moves.
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The stock was down 0.8% after falling almost 6% on Monday.
The company was one of the first to acknowledge that Trump's trade battles were going to cause harm to U.S. businesses that Trump has vowed to protect. Trump slammed Harley on Twitter on Monday and Tuesday.
Donald J. Trump✔@realDonaldTrump
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient! #MAGA
Lennar Corp. (LEN) - Get Lennar Corporation Class A Report rose 4.6% after it posted earnings of 94 cents a share in its fiscal second quarter. Excluding certain items, the homebuilder said earnings would have been $1.58 a share, which beat analysts' estimates. Revenue in the quarter was $5.46 billion, which also topped Wall Street forecasts.
Netflix Inc. (NFLX) - Get Netflix, Inc. (NFLX) Report rose 3.8% on Tuesday after Imperial Capital initiated coverage of the stock with an outperform rating. The firm set a price target of $503 on Netflix shares. Netflix has gained more than 110% year to date.
Akamai Technologies Inc. (AKAM) - Get Akamai Technologies, Inc. Report fell 2.7% after the company said it expects adjusted earnings of 79 cents to 81 cents, compared with previous guidance of 79 to 83 cents.