Stock Market Update

[BRIEFING.COM] The stock market headed higher at the open, yet closed with modest declines at the index level. The S&P 500 was 0.2% lower, the Nasdaq Composite registered a 0.1% decline, and the Dow Jones Industrial Average settled 0.4% lower. Moves in either direction were limited as investors continue to weigh the potential impact of tariffs after a slate of trade-related headlines.

Comments from President Trump suggested there may be tariff adjustments for the auto sector, a Bloomberg report suggested that the EU and US have made little progress on trade talks, and the Department of Commerce launched Section 232 investigations into imports of semiconductors, semiconductor manufacturing equipment, pharmaceuticals, and pharmaceutical ingredients, piquing concerns about tariff increases.

Market participants were also digesting earnings news from Bank of America (BAC 37.99, +1.32, +3.6%) and Citigroup (C 64.33, +1.11, +1.8%), which received positive responses and boosted the overall equity market. Breadth was positive despite the slightly negative finish for major indices. Advancers had a 3-to-2 lead at the NYSE and a 4-to-3 lead at the Nasdaq. 

Moves in the S&P 500 sectors were also limited. The technology sector led the pack, closing 0.3% higher, while the consumer discretionary sector brought up the rear, closing 0.8% lower.

Treasuries settled higher, building on yesterday's gains. The 10-yr yield dropped four basis points to 4.32%, and the 2-yr yield was unchanged at 3.83%.

• Dow Jones Industrial Average: -5.1% YTD
• S&P 500: -8.3% YTD
• S&P Midcap 400: -11.8% YTD
• Nasdaq Composite: -12.9% YTD
• Russell 2000: -15.6% YTD

Reviewing today's economic data:

• April Empire State Manufacturing -8.1 (Briefing.com consensus -14.8); Prior -20.0
• March Export Prices 0.0%; Prior was revised to 0.5% from 0.1%
• March Export Prices ex-ag. -0.1%; Prior was revised to 0.5% from 0.1%
• March Import Prices -0.1%; Prior was revised to 0.2% from 0.4%
• March Import Prices ex-oil 0.1%; Prior was revised to 0.1% from 0.3%

There's a big slate of data to get through on Wednesday, including:

• 7:00 ET: Weekly MBA Mortgage Index (prior 20.0%)
• 8:30 ET: March Retail Sales (Briefing.com consensus 1.3%; prior 0.2%), Retail Sales ex-auto (Briefing.com consensus 0.2%; prior 0.3%)
• 9:15 ET: March Industrial Production (Briefing.com consensus -0.3%; prior 0.7%) and Capacity Utilization (Briefing.com consensus 77.9%; prior 78.2%)
• 10:00 ET: February Business Inventories (Briefing.com consensus 0.3%; prior 0.3%) and April NAHB Housing Market Index (Briefing.com consensus 39; prior 39)
• 10:30 ET: Weekly crude oil inventories (prior +2.55 mln)
• 16:00 ET: February Net Long-Term TIC Flows (prior -$45.2 bln)