Dow bounces higher as Nasdaq, S&P drop on Yellen's rate hike talk

87% of U.S. companies have beaten profit estimates

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U.S. stocks, in a choppy session, got whipsawed after U.S. Treasury Secretary Janet Yellen signaled interest rates may need to rise to manage the economic rebound and prevent the economy from overheating. Additionally, investors digested a fresh batch of corporate earnings amid more talk of inflation.

YELLEN SAYS RATE MAY NEED TO RISE TO HANDLE INFLATION

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34999.15 +221.39 +0.64%
CAT CATERPILLAR, INC. 244.89 +4.03 +1.67%
JNJ JOHNSON & JOHNSON 170.53 +2.11 +1.25%

In a late-session turnaround, the Dow Jones Industrial Average posted a gain of 20 points or 0.06%, curbing a drop of over 300 points earlier. The S&P also slipped 0.67% led by information tech companies. 

Ticker Security Last Change Change %
SP500 S&P 500 4221.35 -11.25 -0.27%

While the Nasdaq Composite suffered the worst drop, falling 1.8%, in part due to weakness in Tesla and Apple. Tuesday marks its weakest day since March. 

Ticker Security Last Change Change %
I:COMP NASDAQ COMPOSITE INDEX 13497.666029 -254.57 -1.85%
TSLA TESLA, INC. 634.20 -38.17 -5.68%
AAPL APPLE, INC. 127.77 -2.44 -1.87%

 In earnings news, both Pfizer and CVS boosted financial outlooks as demand for COVID-19 related items fueled results and shares bucked the selloff. 

Ticker Security Last Change Change %
PFE PFIZER INC. 40.17 +0.62 +1.57%
CVS CVS HEALTH CORP. 87.09 +2.04 +2.40%

"We delivered strong first-quarter results and improved our outlook for the year," said CVS Health President and CEO Karen S. Lynch. "We continue to execute on our strategy while simultaneously managing through a pandemic, helping the country on the road to recovery. 

WALMART OFFERS WALK-UP COVID-19 TESTING

Ticker Security Last Change Change %
WMT WALMART, INC. 141.41 +1.17 +0.83%

Walmart confirmed, along with Sam's Club, it now offers walk-in COVID-19 testing.

BIDEN TALKS TAXES ON AMERICANS EARNING LESS THAN $400K

Moderna also in focus after announcing plans to boost its manufacturing facility in Massachusetts. "Our manufacturing facility has been core to our long-term strategy and has enabled us to provide the scale and flexibility to support the development of our mRNA medicines and vaccines including our COVID-19 vaccine," said CEO Stéphane Bancel in a statement. 

Ticker Security Last Change Change %
MRNA MODERNA, INC. 157.66 -5.49 -3.37%

Financials were in focus as both JPMorgan and Goldman Sachs confirmed plans to return workers to New York City offices in the coming weeks. 

Ticker Security Last Change Change %
JPM JPMORGAN CHASE & CO. 163.25 +2.10 +1.30%
GS THE GOLDMAN SACHS GROUP, INC. 373.81 +3.19 +0.86%

Marathon Oil announced it has reduced $500 million in debt. 

Ticker Security Last Change Change %
MRO MARATHON OIL 11.92 +0.03 +0.25%

After the closing bell investors will get results from Lyft, Xilinx, and Zillow to name a few. 

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Ticker Security Last Change Change %
LYFT LYFT INC. 49.40 -0.67 -1.34%
XLNX XILINX, INC. 120.28 -4.16 -3.34%
Z ZILLOW GROUP INC 112.80 -5.75 -4.85%

In commodities, oil continues its upward climb climbing above the $65 per barrel level, while gold was modestly lower trading at $1,779 an ounce.