Stock Market Update

[BRIEFING.COM] The major averages are giving back a chunk of their gains from Monday with losses in the Dow, Nasdaq, and S&P 500 ranging from 0.2% to 0.3% while the Russell 2000 (-0.6%) is a bit behind.

The market received just one economic report today, as the NFIB Small Business Optimism Index fell to 102.8 in January from 105.1 in December, so the main focus has remained on the newest batch of tariffs, which was formally imposed today. The 25% tariff on steel and aluminum imports will go into effect on March12 with Australia potentially receiving an exemption.

Eight sectors trade in the red with lightly weighted utilities (-0.9%) at the bottom of the leaderboard, though more influential groups like consumer discretionary (-0.6%), financials (-0.7%), industrials (-0.5%) and health care (-0.5%) are only a bit ahead. There has been some profit taking in travel names after Marriott (MAR 289.30, -15.15, -5.0%) beat Q4 expectations, but issued below-consensus earnings guidance for Q1 and the full year.

On the upside, the materials sector (+0.5%) has received a boost from strong results reported by DuPont (DD 80.65, +4.39, +5.8%) and Ecolab (ECL 263.86, +17.92, +7.3%) while the top-weighted technology sector (+0.1%) is fighting to stay positive, which could help the broader market find its legs.

Treasuries continue hovering inside their narrow opening range, having shown no big reaction to the release of Fed Chairman Powell's prepared remarks from today's testimony before the Senate Banking Committee, during which he again said that there is no hurry to adjust the policy stance, repeating comments made at the conclusion of the January FOMC policy meeting. The 10-yr yield is up four basis points at 4.54%, sitting at a one-week high.