US open: Dow slides below 25,000 in early trading

By Iain Gilbert

Date: Tuesday 22 May 2018

US open: Dow slides below 25,000 in early trading

(Sharecast News) - Early trading pointed to a mixed session on Wall Street on Tuesday after early losses saw the Dow drop below the 25,000 mark hit in the previous session for the first time since March.
At 1515 BST, the Dow Jones Industrial Average had slipped 0.10% to 24,989.10, slipping just below the 25,000 mark, while the S&P 500 and Nasdaq collected 0.07% each to 2,734.84 and 7,398.91, respectively.

Connor Campbell, a financial analyst at SpreadEx, said, "The Dow slunk back under 25000 this Tuesday, dipping 30 or so points after the bell rang on Wall Street. It suggests that the trade war relief rally was a one-and-done deal, the kind of macro-news limited in its market-driving potential by a lack of detail and a healthy dose of scepticism about the longevity of any tentative agreement between the US and China."

On the corporate front, department store chain Kohl's lost 2.29% in early trade despite its first-quarter earnings beating expectations on both the top and bottom line.

Elsewhere, Dunkin' Brands ticked ahead just 0.091% after its board approved a $250m share buyback, while Advance Auto Parts picked up 3.88% at the open even as its first-quarter sales missed analysts' expectations.

Home construction group Toll Brothers was 8.14% in the red despite posting a 17% increase in quarterly revenue.

Hewlett Packard Enterprises, Intuit and Red Robin Gourmet Burgers are slated to report their earnings after the close.

On the data front, the Richmond Fed manufacturing index painted a solid picture for manufacturing and the US economy.

In one of the earliest views of the month of May, the index came in at +16 versus an expected reading of +10, bouncing back from the previous -3 reading.

Shipments swung from -8 to +15 and revenues jumped from +2 to +11.

However, the main economic highlight of the week is set for Wednesday, when the Fed is due to release its latest meeting minutes.


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