Premarket action on Tuesday had the three major U.S. indexes trading higher. The Dow Jones industrials were up 0.0.22%, the S&P 500 up 0.36% and the Nasdaq 0.46% higher.
Seven of 11 market sectors closed higher on Monday. Energy (4.91%) and health care (1.08%) posted the day’s best gains. Real estate (−0.95%) and consumer cyclicals (−0.91%) posted the biggest losses. The Dow closed up 0.98% and the S&P 500 up 0.37%, but the Nasdaq closed down 0.27% on Monday.
Two-year Treasuries fell nine basis points to end Monday at 3.97%, and 10-year notes dropped five basis points to a 3.43% close. In Tuesday’s premarket, two-year notes were trading at around 3.99% and 10-year notes at about 3.45%.
Monday’s trading volume was higher than the five-day average. New York Stock Exchange winners outpaced losers by 1,548 to 1,481, while Nasdaq decliners led advancers by about 8 to 7.
The ISM manufacturing index dropped from 47.7% in February to 46.3% in March, the lowest reading in two years. Any reading below 50% indicates a slowdown in manufacturing activity. March was the fifth consecutive month to post an index below 50%. The Job Openings and Labor Turnover Survey (JOLTS) will be released after markets open Tuesday morning. In February, there were 10.82 million U.S. job openings, down from 11.23 million in January.
Monday’s winner among S&P 500 stocks was Marathon Oil Corp., (NYSE: MRO), with a gain of 9.89%. Six of the 10 top finishers were independent oil products, two were oilfield services companies and one was an integrated oil company. The tenth, Humana Inc. (NYSE: HUM), is a health care firm. Both West Texas Intermediate (WTI) and Brent crude prices jumped more than 6%. The two benchmarks have retained their gains in the early going Tuesday with increases of around 0.6%.
Tesla Inc. (NASDAQ: TSLA) was Monday’s big loser, down 6.1% after reporting first-quarter deliveries. While the delivery total was arguably a beat, Friday’s news that a final list of EVs that qualify for the federal $7,500 tax credit for auto buyers is unlikely to include certain versions of Tesla’s Model 3 or its Model Y is far more meaningful. Tesla may be forced to lower its prices — again — in order to compete. General Motors Co.’s (NYSE: GM) Hummer EV is not a particular threat. GM sold two Hummers in the first quarter.
In premarket trading Tuesday, shares of AMC Entertainment Holdings Inc. (NYSE: AMC) were down by about 27.6% at $3.70. AMC’s preferred shares (NYSE: APE) traded up by more than 20% at $1.78. Both stocks closed up about 0.7% on Monday.
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