The S&P 500 retreated from records on Tuesday as crude oil pulled back from recent two-week highs and a series of disappointing retail earnings hurt the consumer sector.
The S&P 500 was down 0.07%, falling back from a record close achieved a day earlier, while the Dow Jones Industrial Average slipped by 0.01%. The Nasdaq did manage to end at a record for its second day in a row after climbing 0.33% to 6,169.87.
Crude oil moved off session highs by the middle of the session Tuesday. Oil prices surged on Monday, reversing big dips seen last week and putting commodities at two-week highs, after energy ministers from Russia and Saudi Arabia surprised markets by calling for an extension to an oil production cap agreement.
An extension to the OPEC deal will be the main point of conversation when the 13 member countries meet in Vienna on May 25. The current agreement, established last November, is set to expire at the end of June.
The oil market has already reached a balance and the correction to a global supply glut will continue in the near term, the International Energy Agency said in its monthly report on Tuesday. The IEA held its demand growth forecast at 1.3 million barrels per day in 2017.
"The overall picture remains supportive, with first-quarter data showing only a slight residual surplus and stronger seasonal demand pointing to a clear third-quarter deficit just ahead," Tim Evan, energy futures specialist at Citi, wrote in a note.
West Texas Intermediate crude was down 0.2% at $48.74 a barrel on Tuesday. Oil traded above $49 earlier.
Jim Cramer recommends holding onto oil stocks for now, but to be prepared to pull the trigger if crude reaches $53. Get his insights with a free trial subscription to our premium site for investors, Real Money.
Dick's Sporting Goods (DKS) led losses in the cyclical consumer goods sector after missing same-store sales estimates over its recent quarter. The sports retailer reported an increase in same-store sales of 2.4%, below an expected growth rate of 3.5%. Adjusted earnings of 54 cents a share met estimates. Dick's anticipates second-quarter adjusted earnings of at least $1.02 a share, above consensus of 99 cents. The stock fell 13.7%.
TJX (TJX) declined 4% after disappointing quarterly sales and weak guidance. The discount retailer reported sales of $7.78 billion, up from $7.54 billion a year earlier but below consensus of $7.88 billion. Same-store sales rose 1%, below estimates of 1.6% growth. TJX anticipates second-quarter earnings no higher than 83 cents a share, 9 cents below consensus.
Staples (SPLS) shares fell 3.5% after same-store sales topped estimates but total sales came in slightly below. Adjusted earnings of 17 cents a share met expectations, while revenue declined by 4.9% to $4.15 billion and fell short of estimates of $4.52 billion. Same-store sales fell 2.6%, a narrower decline than an expected 4.1% drop.
Home Depot (HD) rose almost 1% after exceeding quarterly expectations and projecting a solid full-year outlook. The DIY retailer earned $1.67 a share over the recent quarter, a nickel above consensus, while sales of $23.9 billion just edged past a target of $23.8 billion. Same-store sales increased by 6%. For the full year, Home Depot anticipates both revenue and same-store sales to increase by 4.6%.
Industrial production in the U.S. rose in April at its fastest pace since February 2014. Output increased 1%, while industrial capacity in use climbed to 76.7, the highest level in 20 months. Analysts anticipated 0.4% growth in output.
U.S. housing starts slowed in April in a slight easing following a solid first quarter. Construction on new homes in April fell by 2.6% to a 1.17 million annual pace, according to the Commerce Department. However, starts are up 0.7% year over year. Permits declined by 2.5%. Analysts expected starts at an annual pace of 1.26 million in April.
Donald Trump divulged highly classified intelligence to Russia during a meeting last week, according to a shocking report from The Washington Post. Trump reportedly shared top-secret information on the fight against ISIS with Russian Foreign Minister Sergey Lavrov and Russian Ambassador Sergey Kislyak in a meeting in which U.S. media was barred. The meeting raised eyebrows just a day after Trump fired FBI Director James Comey, who was head of an investigation into Trump and his campaign's alleged ties with Russia.
Trump defended his position on Twitter Tuesday, saying he had the right as president to divulge information. He said he shared the information as he hopes to ally with Russia in the fight against ISIS. His tweet didn't detail whether the information shared was classified.
Shares of Etsy (ETSY) soared 21% on Tuesday after investment firms TPG Group Holding Advisers and Dragoneer Investment Group reported an 8% stake in the homemade goods marketplace, according to SEC documents filed on Monday. TPG disclosed a 4.3% stake in Etsy, while Dragoneer said it had a 3.7% stake in the crafts marketplace.
Ford (F) plans to slash 10% of its workforce, according to reports. The job cuts could be announced this week, The Wall Street Journal reported. The job cuts largely target salaried employees. It's unclear if the plan includes cuts to the hourly workforce at Ford's U.S. factories and plants that are abroad, according to the Journal. Ford has about 200,000 employees worldwide.
The auto industry is in for a wake-up call that Ford could deliver, argued Brian Sozzi over on our premium site for investors, Real Money. Get his analysis with a free one-month trial to Real Money.
Yahoo! (YHOO) rose 2% after announcing plans to buy back as much as $3 million worth of shares. The offer provides liquidity to stockholders forced to sell shares heading into the close of its sale to Verizon (VZ) .
Canaccord Genuity upped its stock price target for Apple (AAPL) on high hopes for iPhone sales. Analyst Michael Walkley raised his estimate for fiscal 2018 iPhone sales by six million to 248 million units.
Cocktails & Cramer