By Anora Mahmudova and Victor Reklaitis, MarketWatch
Monthly car sales disappoint investors
NEW YORK (MarketWatch) -- U.S. stocks pulled back Tuesday,
retreating from all-time highs and the psychologically significant
5,000 level for the Nasdaq Composite reached during the previous
session.
Tuesday's solid selling action follows weeks of quiet sessions
during which markets crept up to record their largest monthly gain
in more than three years.
The measure of implied volatility on the S&P 500, CBOE
volatility index, jumped 10% to above 14 on Tuesday.
In the absence of major economic reports, investors turned their
attention to Israeli Prime Minister Benjamin Netanyahu's speech to
U.S. Congress
(http://blogs.marketwatch.com/capitolreport/2015/03/03/live-blog-and-video-of-benjamin-netanyahus-speech-to-congress/).
Netanyahu criticized the White House's attempts to reach a nuclear
deal with Iran, saying it was a 'bad deal.' The speech reminded
investors of potential geopolitical risks abroad.
Weaker-than-expected growth in monthly car sales dampened
spirits, sending shares of Ford and Fiat Chrysler sharply down.
Cold and harsh weather in February was cited as a culprit for less
demand.
The S&P 500 (SPX) dipped by 18 points, or 0.9%, to 2,099,
while the Dow Jones Industrial Average (DJI) lost 146 points, or
0.8%, to 18,142. The S&P and Dow on Monday both scored all-time
closing highs.
The Nasdaq Composite (RIXF) fell by 48 points, or 0.8%, to
4,959. The tech-heavy benchmark on Monday, which scored its first
close above 5,000 since the Internet bust, closed at 5,008.10 on
Monday, only 0.8% short of its record close of 5,048.62 hit March
10, 2000.
"Stock markets have dropped back a bit today in normal backing
and filling after yesterday's rally to a new all-time high for the
Dow and the Nasdaq Composite reaching 5,000 for the first time in
15 years," said Colin Cieszynski, chief market strategist at CMC
Markets, in a note Tuesday.
Check out: 7 charts showing how the Nasdaq's changed since the
tech crash 15 years ago
(http://www.marketwatch.com/story/7-ways-the-nasdaqs-changed-since-the-tech-crash-2015-02-27)
Notable individual movers: Mylan NV(MYL) and Ford Motor Co. (F)
were among the S&P's biggest decliners. Mylan late Monday
delivered a quarterly report that roughly matched Wall Street's
forecasts, while Ford reported that its February U.S. vehicle sales
fell 1.9% from a year ago
(http://www.marketwatch.com/story/ford-motors-stock-falls-after-february-us-sales-decline-2015-03-03).
Shares of McDermott International Inc.(MDR) soared 25% after the
oilfield-engineering company late Monday posted a surprise profit
for the fourth quarter
(http://www.marketwatch.com/story/mcdermott-shares-jump-on-surprise-earnings-2015-03-02).
Read more about Tuesday's jumpiest stocks in Movers &
Shakers
(http://www.marketwatch.com/story/best-buy-autozone-kate-spade-earnings-in-focus-2015-03-02)
Tuesday's economic news: No top-tier data releases are on tap
Tuesday, but investors will be taking in monthly auto-sales figures
and a speech by Federal Reserve Chairwoman Janet Yellen.
Economists polled by MarketWatch expect total sales to have
climbed to 16.7 million in February, up from 16.6 million in
January. Yellen is set to deliver a speech on bank regulation and
supervision in New York City at 8:15 p.m. Eastern.
Other markets:European stock markets slipped
(http://www.marketwatch.com/storyno-meta-for-guid), while Asian
stocks closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), with China's
Shanghai Composite Index sliding 2.2%.
Crude-oil futures (CLJ5) moved higher and traded near $50 a
barrel
(http://www.marketwatch.com/story/oil-ticks-higher-but-stays-volatile-2015-03-03).
Gold dipped (http://www.marketwatch.com/storyno-meta-for-guid), and
the dollar (DXY) dipped against major rivals.
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