Wall Street's three major indexes closed lower on Tuesday as investors booked some profits from a post-election rally and waited anxiously for U.S. inflation data due this week.
Market Snapshot
The Dow Jones Industrial Average fell 382.15 points, or 0.86%, to 43,910.98, the S&P 500 lost 17.36 points, or 0.29%, to 5,983.99 and the Nasdaq Composite lost 17.36 points, or 0.09%, to 19,281.40.
Market Movers
Tesla fell 6.1% after Elon Musk's electric-vehicle company closed Monday with a gain of 9%. Coming into the session, the stock has gained nearly 40% since Donald Trump was elected president a second time. Musk, Tesla's CEO, actively campaigned for Trump, spending millions of dollars to support Trump's bid. Investors see Trump's victory as a win for the company even though Trump has been down on EVs. Deutsche Bank analyst Edison Yu said he sees " potential large terminal value benefits to Tesla's efforts in auto, robotaxi, and even humanoid robotics" from a second Trump administration.
Home Depot, the No. 1 home-improvement retailer, reported third-quarter adjusted earnings of $3.78 a share, topping analysts' expectations, as sales rose 6.6% to $40.2 billion and beat estimates. Home Depot also raised its fiscal-year outlook but cautioned that "macroeconomic uncertainty remains." Shares dropped 1.3% after rising earlier in the session.
Trump Media & Technology Group sank 8.8%. Shares of Trump Media, which operates the Truth Social social-media platform and which is roughly 57%-owned by President-elect Trump rose 4.7% on Monday. Trump Media shares have risen 75% this year.
Shopify surged 21% after the e-commerce company reported a third-quarter jump in revenue to $2.16 billion from $1.71 billion a year earlier and said it expects fourth-quarter revenue to grow at a mid-to-high-20s percentage rate year over year.
Honeywell International gained 3.9% after Elliott Investment Management built a $5 billion stake in the industrial company and called for it to split up its business.
Boeing declined 2.5% after the plane maker said it delivered just 14 jetliners in October. The company also agreed to pay struggling supplier Spirit AeroSystems up to $350 million in advance to keep making fuselages for Boeing.
Live Nation Entertainment rose 4.7% after the parent company of Ticketmaster reported third-quarter earnings that beat analysts' estimates and the world's largest concert promoter said it sold 144 million tickets this year through October, an increase of 3%. The company said it was looking "toward an even bigger 2025."
MicroStrategy gained 4.8%, Coinbase fell 1.6%, and Robinhood Markets ticked 0.6% higher as the crypto-linked stocks traded mixed even as Bitcoin continues to set record highs. Bitcoin was up to $88,938.22.
Tyson Foods rose 6.6% after the meat producer reported fiscal fourth-quarter earnings that topped Wall Street expectations as beef sales rose 4.6% and chicken sales gained 2.3%, offsetting weakness in prepared food and pork sales.
Market News
Record-Breaking Bitcoin Surges Towards $90,000 on Trump Boost
Bitcoin rallied to the verge of $90,000 on Tuesday, riding a wave of euphoria since the election of Donald Trump as U.S. president on expectations his administration will be crypto friendly.
The world's biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,982 - a gain of around 30% since Nov. 5. It was last down 1.4% at $86,730.
Bitcoin is surging along with Elon Musk's automaker Tesla, which is up nearly 40% since voting results rolled in, as investors figure Trump's friends and interests will do well while he is in office.
US Monetary Policy Still Restrictive, Two Fed Officials Say
The Federal Reserve's policy rate continues to act as a brake on the resilient labor market and on inflation that is still above the 2% target, two U.S. central bankers said on Tuesday, a view that appears to argue for more interest rate cuts, even as both signaled they were not ready to judge how fast or by how much.
"In my judgment we are still in a modestly contractionary stance, but ultimately the economy will guide us, in terms of how far we are needing to go" in cutting the Fed's benchmark for short-term borrowing costs, Minneapolis Fed President Neel Kashkari said at a Yahoo Finance event.
