U.S. stocks retreat as Middle East tensions rise

Oil fell after Colonial Pipeline said it will be back online by end of week

The Dow Jones Industrial Average hit 35,000 for the first time, before pulling back late afternoon, while the S&P 500 languished and Nasdaq fell over 2%. 

News of a U.S. warship fire warning shots in the Strait of Hormuz at Iranian gunboats, according to the U.S. Department of Defense, jolted markets. 

This as investors continued to monitor the cyber attack on the Colonial Pipeline as well as corporate earnings. 

Chevron and chemical giant Dow reversed earlier gains, while 3M rallied higher. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33945.58 +68.61 +0.20%
CVX CHEVRON CORP. 106.40 +0.35 +0.33%
DOW DOW, INC. 63.50 +0.39 +0.62%
MMM 3M CO. 195.14 -0.07 -0.04%

The S&P 500 was lower, pressured by technology stocks and as energy stocks lost steam after the pipeline which carries fuel from the Gulf Coast to the New York area said it expects to restore full operations by the end of the week. 

Ticker Security Last Change Change %
SP500 S&P 500 4246.44 +21.65 +0.51%
XLE ENERGY SELECT SECTOR SPDR ETF 54.43 +0.36 +0.67%
XLK TECHNOLOGY SELECT SECTOR SPDR ETF 144.65 +1.30 +0.91%

West Texas Intermediate crude reversed earlier gains trading around the $64 per barrel level, while gasoline prices also gave up gains even with the average per-gallon price at the pump averaging $2.96 as tracked by AAA.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 49.42 +0.06 +0.12%
UGA UNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS 35.66 +0.42 +1.19%

The pipeline transports more than 100 million gallons a day, or roughly 45% of fuel consumed for the East Coast, according to the company's website. It delivers gasoline, diesel, jet fuel and heating oil and serves U.S. military facilities.

Ticker Security Last Change Change %
I:COMP NASDAQ COMPOSITE INDEX 14253.268071 +111.79 +0.79%
AAPL APPLE, INC. 133.98 +1.68 +1.27%
AMZN AMAZON.COM, INC. 3,505.44 +51.48 +1.49%

The Nasdaq Composite snapped a two-session winning streak with big tech heavy weights falling including Apple and Amazon dragging the tech-heavy composite down over 2.5%. 

In corporate news, Marriott International, in its earnings release, noted demand is picking up in the U.S. and Canada. "Demand increased rapidly as vaccine rollouts accelerated.  Occupancy started the year at 33 percent in January and reached 49 percent by March.  Leisure demand gained momentum, particularly in ski and beach resort destinations" said CEO Tony Capuano. Still the hotel giant reported a quarterly loss. 

Ticker Security Last Change Change %
MAR MARRIOTT INTERNATIONAL, INC. 141.40 -1.48 -1.04%

Tyson Foods also out with results and lifted its revenue guidance due to rising inflationary costs. "We expect sales to approximate $44 billion to $46 billion for fiscal 2021, reflecting the pass-through of rising costs and continued strength in beef markets" the company noted.  

Ticker Security Last Change Change %
TSN TYSON FOODS, INC. 74.21 +0.64 +0.87%

Chipotle announced it will raise minimum pay to $15 per hour starting in June. 

CHIPOTLE HIKING PAY TO $15 PER HOUR

Ticker Security Last Change Change %
CMG CHIPOTLE MEXICAN GRILL, INC. 1,447.64 +21.04 +1.47%

Shares of Churchill Downs also pulled back after famed trainer Bob Baffert's Kentucky Winner Medina Spirit tested positive for betamethasone, a steroid. Baffert telling Fox, he did not "cheat." 

BAFFERT: MEDINA SPIRIT WAS NOT TREATED WITH A DRUG HE TESTED POSITIVE FOR

In other commodities, gold was little changed at $1,837 an ounce.