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 key indexes 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, indicating
overall jitters in the market.
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.
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. But indexes have
since come off their lows.
The S&P 500 (SPX) erased all of Monday's gains, with nine of
its main 10 sectors trading lower. The Dow Jones Industrial Average
(DJI) dropped more than 130 points, with 27 of the 30 blue-chip
companies trading lower.
The Nasdaq Composite (RIXF) retreated from the 5,000, erasing
all of the previous session's gains. 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.
JJ Kinahan, chief strategist at TD Ameritrade, said today's high
implied volatility number is indicative of investors hedging
against this week's major event - the jobs report.
"Investors are reassessing risks and buying protection ahead of
the jobs report. After disappointing car sales numbers, there are
some concerns that the jobs report may not be as stellar as hoped
for," Kinahan said.
"It is also normal for markets to pull back after reaching
record highs, with people booking in some profits and selling ahead
of Friday employment numbers," he added.
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 are 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.
MartketWatch's Sara Sjolin in London contributed to this
report
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