U.S. Averages Hovered Near Record Highs; Retailers and Tech Stocks In Focus

Barry Adams
21 May, 2024
New York City

Benchmark indexes hovered near record highs, and tech stocks lacked direction ahead of the closely watched earnings report from Nvidia. 

Market indexes traded around flatline as investors digested a mixed batch of earnings from leading retailers including Macy's, Lowe's, and AutoZone. 

Palo Alto Networks also dropped more than 5% after the cybersecurity company's guidance fell short of market expectations. 

Investors have built expectations of rate cuts in the second half, but those expectations may have to be scaled back after policymakers signaled the need to keep rates higher. 

On Tuesday, Fed Governor Christopher Wallace said he would prefer more encouraging data on the inflation front for several months before lowering rates. 

"In the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” Wallace added. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index was nearly unchanged at 5,308.15, and the Nasdaq Composite declined 0.2% to 16,762.19. 

The yield on 2-year Treasury notes edged higher to 4.84%, 10-year Treasury notes increased to 4.41%, and 30-year Treasury bonds edged higher to 4.54%.

Natural gas prices advanced in the previous four sessions in a row and hovered near this year's high on the expectation of rising demand from U.S. electric utilities. 

WTI crude oil decreased $0.76 to $78.51 a barrel, and natural gas prices declined 6 cents to $2.69 a thermal unit.

Gold increased by $0.80 to $2,427.05 an ounce, and silver rose 15 cents to $31.91. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.54.

 

U.S. Stock Movers

Palo Alto Networks declined 4.8% to $308.21 after the cybersecurity company reported better-than-expected quarterly earnings, but the company's guidance for the current quarter fell short of market expectations. 

Lowe's Companies decreased 1.8% to $225.04 after the home improvement retailer said comparable store sales declined 4.1% in the first quarter. 

The retailer reported better-than-expected quarterly results. 

Macy's Inc. gained 0.1% to $19.13 after the department store chain reported better-than-expected quarterly results. 

The retailer also lifted its full-year outlook. 

AutoZone declined 1.8% to $2,875.78 after the specialty retainer reported mixed results in the fiscal third quarter.