U.S. stock averages closed lower Tuesday, their first decline in four sessions, as Wall Street took a breather from recent gains, digested retail earnings and looked ahead to Fed-related events this week.
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The yield on the 10-year Treasury bond slipped Tuesday to 1.55 percent, a signal that some investors were seeking the safety of government debt.
|I:DJI||DOW JONES AVERAGES||21052.53||-360.91||-1.69%|
|I:COMP||NASDAQ COMPOSITE INDEX||7373.08309||-114.23||-1.53%|
Home Depot shares rose despite the home improvement retailer cutting its full-year sales forecast. The home improvement retailer pointed to a slump in lumber prices and the impact of the U.S.-China trade war.
The Dow component cut its sales forecast to a 2.3 percent rise from a prior outlook of 3.3 percent. Home Depot did, however, top profit estimates.
TJX shares were slightly off after same-store sales at the retailer missed expectations.
Kohl's shares tumbled after reporting earnings that missed analyst expectations.
In M&A news, Elanco Animal Health shares fell after the company announced it is buying Bayer's animal health unit in a cash and stock deal worth $7.6 billion. The deal creates the second-largest animal health company in the world.
|HD||THE HOME DEPOT INC.||178.70||-2.61||-1.44%|
|ELAN||ELANCO ANIMAL HEALTH INC||20.19||-0.58||-2.79%|
On Monday, Wall Street rallied on the U.S. decision to give Chinese telecom giant Huawei another 90 days to buy equipment from American suppliers.
In Europe, Germany's DAX and France's CAC traded lower by 0.4 percent. London's FTSE was down 0.7 percent.
In Asia, Japan's Nikkei 225 gained 0.6 percent, Hong Kong's Hang Seng lost 0.2 percent and China's Shanghai Composite was down 0.1 percent.
This week will include the release on Wednesday of minutes from the last Fed meeting in which the central bank cut interest rates.
Fed Chair Jerome Powell will also address the gathering of central bankers on Friday in Jackson Hole, Wyoming.
Meanwhile, President Trump said Tuesday that he is considering a temporary payroll tax cut was being discussed.
The Associated Press contributed to this article.