U.S. equity markets surrendered their gains late in Tuesday's session, halting their winning streak at seven days, after Sen. Majority Leader Mitch McConnell said the White House and top Democratic negotiators did not hold talks on a COVID-19 relief package on Tuesday.
The Dow Jones Industrial Average fell 104 points, or 0.38%, while the S&P 500 shed 0.8%, ending its longest winning streak since April 2019. Meanwhile, the Nasdaq Composite, continued its recent underperformance, slid 1.69%.
Tech stalwarts Apple and Microsoft dragged the Dow lower while economically-sensitive stocks like Caterpillar and ExxonMobil outperformed.
|XOM||EXXON MOBIL CORP.||55.97||+0.68||+1.23%|
Airline stocks had been poised for a second day of gains after Transportation Security Administration data out Monday showed the number of travelers who went through airport screenings on Sunday was the highest since shutdowns began in mid-March, but they turned lower in the final hour of trading.
Meanwhile, cruise operators ticked higher after Royal Caribbean Group announced it is working on new safety measures that will allow ships to resume their voyages.
|AAL||AMERICAN AIRLINES GROUP, INC.||21.01||+0.64||+3.14%|
|UAL||UNITED AIRLINES HOLDINGS||51.86||+1.56||+3.10%|
|RCL||ROYAL CARIBBEAN CRUISES||84.58||+3.49||+4.30%|
Ride-hailing operators Uber Technologies Inc. and Lyft Inc. were ordered by a California judge to classify drivers in the state as employees, entitling them to benefits. The companies currently classify drivers as independent contractors.
Looking at earnings, Simon Property Group Inc. missed Wall Street estimates for both profit and revenue as retailers struggled to pay rent due to the loss of sales during COVID-19 shutdowns. In the U.S., the mall operator collected 51% of April rent due and 69% for May and June combined. That number increased to 73% in July.
|UBER||UBER TECHNOLOGIES, INC.||55.77||+0.30||+0.54%|
|SPG||SIMON PROPERTY GROUP, INC.||117.71||+3.38||+2.96%|
Canada Goose Holdings Inc.'s loss widened as COVID-19 shuttered stores and reduced hours of operation. The outerwear manufacturer will focus new store openings in the Greater China region after its four new stores in Chengdu outpaced expectations.
Chinese streaming-music service Tencent Music said its paid subscribers jumped 52% to 47.1 million during the three months through June. The company also extended its licensing agreement with Universal Music Group, home to Taylor Swift and the Beatles.
|GOOS||CANADA GOOSE HLDGS||41.20||+1.86||+4.73%|
|TME||TENCENT MUSIC ENTERTAINMENT GROUP||18.20||+1.21||+7.09%|
Chinese electric-vehicle maker Nio Inc.'s quarterly revenue surged 147% from a year ago, as the world’s largest auto market reopened from COVID-19 lockdowns. The company said momentum carried over into July, with deliveries up 322% year-over-year.
Looking at commodities, West Texas Intermediate crude oil slid 33 cents to $41.61 per barrel while gold tumbled $91.80 to $1,932.60 an ounce.
U.S. Treasurys were lower, causing the yield on the 10-year note to climb by 3.3 basis points to 0.607%.
In Europe, France’s CAC rose 2.41%, Germany’s DAX added 2.04% and Britain’s FTSE gained 1.71%.
Asian markets ended mixed with Hong Kong’s Hang Seng and Japan’s Nikkei climbing 2.11% and 1.88%, respectively, while China’s Shanghai Composite slid 1.15%.