The New York Stock Exchange (NYSE) is pictures on May 26, 2020 at Wall Street in New York City.
Johannes Eisele | AFP | Getty Images
Stocks pulled back on Tuesday, led lower by stocks that would directly benefit from an economic recovery, as Wall Street gave back some of the sharp gains from the previous session.
The Dow Jones Industrial Average traded 200 points lower, or 0.8%. The S&P 500 slid 0.6% and the Nasdaq Composite was flat.
There was not a single major factor driving markets but here's what traders were watching Tuesday morning:
- Stocks tied to the economy reopening from the coronavirus shutdowns were lower in the premarket. Norwegian Cruise Line and Carnival Corp were lower by about 2% each. American Airlines and United Airlines both fell more than 2%.
- Atlanta Federal Reserve President Raphael Bostic told The Financial Times the U.S. economic recovery will be "bumpier" as coronavirus cases continue to rise.
- On the positive side, the U.S. government awarded drugmaker Novavax a $1.6 billion contract to develop a coronavirus vaccine, the biggest amount yet granted under the White House's "Operation Warp Speed." Novavax shares were up 34%.
- Tech shares also capped Tuesday's losses, as Amazon, Apple, Netflix and Alphabet all traded higher.
Tuesday's action followed a strong day on Wall Street that saw the Dow jumping more than 450 points. The S&P 500 gained 1.5% on Monday for its fifth straight positive session, while the Nasdaq Composite notched the biggest gain, rising 2.2%.
The market continued to shrug off on Monday a continuous rise in coronavirus cases across the U.S. The number of people hospitalized with Covid-19 grew by 5% or more Sunday in 23 states, including Texas, which reported a record of more than 8,000 hospitalizations on Sunday. California Gov. Gavin Newsom on Monday asked six additional counties to close their indoor businesses.
"While we expect continued volatility, we think there are grounds for optimism that economies and markets can weather the recent acceleration in infections," Mark Haefele, chief investment officer at UBS, said in a note. "There are signs that healthcare systems are coping better with COVID-19, reducing the need for restrictions on freedom of movement. Economic data continues to point to resilience."
The Labor Department will release the May figure for job openings on Tuesday at 10 a.m. ET. Economists polled by Dow Jones expect the total vacancies to drop to 4.5 million in May from 5.05 million in April, which was the lowest total since December 2014.
The government's Job Openings and Labor Turnover Survey is a month behind the more closely followed nonfarm payrolls report, which showed a surge of 4.8 million in June and a 2.7 million jump in May.
Correction: Fixes the release time for the Labor Department's job openings data.
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