Stocks close lower following Fed's Powell testimony, better-than-expected consumer confidence
Wall Street closed on Tuesday with small declines after Fed Chairman Jay Powell and top pharmaceutical CEOs testified in front of Congress.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HD | THE HOME DEPOT INC. | 335.53 | +3.56 | +1.07% |
| LOW | LOWE'S COMPANIES INC. | 229.58 | +2.06 | +0.91% |
| CAT | CATERPILLAR INC. | 335.33 | +4.19 | +1.27% |
On the earnings front, Home Depot's fourth quarter results missed on profit, revenue and same store sales. While the company is hoping that warmer weather will bolster sales, the retailer gave a profit estimate for 2019 that fell below analyst expectations. Home Depot's stock closed down slightly to $188.30 per share.
Macy's on Tuesday said it would launch a new restructuring effort that is projected to save the retailer $100 million in annual expenses. The company suffered from slower-than-expected holiday sales, but still beat Wall Street estimates on profit and revenue in the fourth quarter. Its 2019 profit outlook, however, was lower than analysts expected. Macy's stock closed up 1.48 percent to $24.72 per share.
Meanwhile, Caterpillar shares took a hit after brokerage UBS double downgraded the company's shares to "sell." Stock for the Deerfield, Illinois-based manufacturer closed down 3.37 percent to $137.98 per share.
Federal Reserve Chairman Powell testified in the first of a two-day, semi-annual testimony to both houses of Congress on the central bank’s monetary policy. Powell reiterated the Fed will remain patient in determining further adjustments to interest rates given uncertainty about the economic outlook.
In economic news, the Conference Board on Tuesday said its index of U.S. consumer confidence rose to 131.4 in February from 121.7 in January.
The S&P CoreLogic Case-Shiller report on home prices for December showed that the rate of home price increases across the U.S. has continued to slow. The 20-City Composite posted a 4.2 percent year-over-year gain, down from 4.6 percent in the previous month.
Housing starts dropped 11.2 percent to a seasonally adjusted annual rate of 1.078 million units last month, the weakest reading since September 2016.
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In Asian markets on Tuesday, China’s Shanghai Composite ended the day flat, Hong Kong’s Hang Seng slipped by 0.4 percent as did Japan’s Nikkei.
In Europe, the major markets ended the day mixed. London’s FTSE fell 0.5 percent, Germany’s DAX added 0.3 percent and France’s CAC gained 0.1 percent.