U.S. Stocks Rebound After Midday Dip
U.S. stocks recovered after a brief bout of selling sent the Dow Jones Industrial Average down more than 100 points.
Stocks had dropped after Donald Trump Jr. released emails about meeting with a Russian lawyer to discuss allegedly incriminating information about Hillary Clinton, traders said. But by afternoon, stocks retraced much of their losses -- leaving the Dow industrials on track to close slightly higher for the day.
Shares of energy companies rose with oil prices, supporting major stock indexes.
The Dow Jones Industrial Average added 0.6 point, or less than 0.1%, to 21409, after losing roughly 129 points earlier in the session. The S&P 500 fell less than 0.1% and the Nasdaq Composite rose 0.3%.
Energy stocks rose 0.5% in the S&P 500, leading gains. U.S. crude oil rose 1.4% to $45.04 a barrel.
Snap shares extended declines from Monday, when it fell below its initial public offering price for the first time. The Snapchat parent's stock slid 9% on Tuesday after Morgan Stanley -- one of the underwriters for Snap's IPO -- downgraded the company and lowered its price target.
Overall, many investors and analysts say they have pared expectations for the U.S. stock market's gains for the rest of the year. Stock valuations are at higher-than-average levels and central banks are signaling they will move toward normalizing monetary policy.
That leaves the stock market vulnerable to a pullback should earnings growth stall out, investors say.
"Earnings are good right now -- the question is are they going to be good in 2018," said Doug Foreman, chief investment officer of Kayne Anderson Rudnick Investment Management.
Government bonds edged higher Tuesday, with the yield on the 10-year U.S. Treasury note falling to 2.362%, according to Tradeweb, from 2.371% Monday. Yields fall as bond prices rise.
"There has a been a marked shift in the language from central banks," said Ryan Myerberg, portfolio manager at Janus Henderson. "We can see the powerful force keeping rates so low for so long is being unwound, but what it means for the near term is up for debate," he said, adding coming inflation readings, including Friday's U.S. consumer prices data, will be key for the direction of yields.
Elsewhere, the Stoxx Europe 600 fell 0.7%. Japan's Nikkei Stock Average gained 0.6% as a weaker yen, which benefits export-oriented stocks, provided support. Hong Kong's Hang Seng Index gained 1.5%.
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(END) Dow Jones Newswires
July 11, 2017 16:24 ET (20:24 GMT)