By Sara Sjolin, MarketWatch , Ryan Vlastelica
Home Depot falls after results, weighing on Dow
U.S. stocks were flat on Tuesday as investors found few reasons
to keep pushing shares higher for a third straight session, even as
tensions between the U.S. and North Korea appeared to recede after
Kim Jong Un pulled back on his threat to attack Guam.
The Dow Jones Industrial Average dipped 3 points to 21,989,
while the S&P 500 index was off 1.5 point at 2,464 and the
Nasdaq Composite Index was off 6 points, or 0.1%, at 6,334.
All three indexes had traded higher earlier in the session, and
at its peak of the day, the S&P moved within 1 percentage point
of record levels.
The move higher comes after an upbeat close on Monday
(http://www.marketwatch.com/story/dow-futures-flirt-with-100-point-gain-as-north-korea-fears-put-on-back-burner-2017-08-14),
when the S&P gained 1% for the first time in three months as
the verbal standoff between the U.S. and North Korea cooled. The
Nasdaq rallied 1.3% while the Dow ended 0.6% higher. The blue-chip
average has now gone 61 sessions without a 1% move in either
direction, according to data from WSJ Market Data Group, its
longest streak in about 22 years
(http://www.marketwatch.com/story/the-dow-just-marked-its-longest-streak-without-a-1-move-in-either-direction-in-22-years-2017-08-14).
"We're at an inflection point, and right now the market is
trying to figure out whether this is still a valid, healthy trend
higher, or the start of a deeper pullback of some kind," said John
Kosar, chief market strategist at Asbury Research. "I can't tell
you what North Korea will do, or what Trump might tweet, but I can
tell you that the next geopolitical event is likely to be the fuse
that either resumes the S&P's uptrend or pulls us into a
correction."
Tensions between the two nations appeared to ease on Tuesday,
with North Korean leader Kim Jong Un deciding not to launch a
threatened missile attack on Guam
(http://www.marketwatch.com/story/north-korea-steps-back-from-plan-to-launch-missiles-at-guam-2017-08-14),
according to Pyongyang's state media. The leader, however, warned
that he could change his mind "if the Yankees persist in their
extremely dangerous reckless actions."
The isolated nation said last week it would complete its plans
to strike Guam in mid-August.
"Every day that no news breaks should help markets recover to
where they were before last Monday evening's 'fire and fury' tweet
after the earlier Washington Post story that Pyongyang has produced
a nuclear warhead small enough to fit inside one of its missiles,"
Deutsche Bank wrote in a note to clients. "It will be difficult for
markets to fully recover their poise until we're out of this
midmonth window with no new provocations (or worse)."
President Donald Trump last week said he would unleash "fire and
fury like the world has never seen" if North Korea continued to
threaten the U.S.
The dollar welcomed the de-escalation of the conflict on
Tuesday. The ICE Dollar Index , which measures the dollar against
six rival currencies, rose 0.5% to 93.83, adding to a 0.4% gain
from Monday.
The recovery from last week's selloff--the worst for major
indexes in months--was the latest example of investors using any
weakness to buy on market declines
(http://www.marketwatch.com/story/a-problem-for-buy-the-dip-investors-no-dips-to-buy-2017-08-08).
It has been an atypically long time since the market fell even 3%
from a peak, let alone more.
(https://twitter.com/michaelbatnick/status/897426975568121865)
In what could become a headwind, however, the rally is occurring
against a backdrop of falling profit forecasts
(http://www.marketwatch.com/story/stock-rally-is-occurring-against-a-backdrop-of-falling-profit-forecasts-2017-08-14).
Economic news:Retail sales rose 0.6% in July
(http://www.marketwatch.com/story/us-retail-sales-soar-in-july-to-7-month-high-2017-08-15),
above expectations for a 0.4% rise, helped by strong demand for new
autos and Amazon's Prime Day shopping specials.
Separately, the import price index rose 0.1% last month
(http://www.marketwatch.com/story/cost-of-imported-goods-rise-for-first-time-in-three-months-2017-08-15),
its first gain in three months.
See:MarketWatch's economic calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
There are no Federal Reserve officials scheduled to speak on
Tuesday.
Stock movers:Home Depot Inc.(HD) fell 3.3% even as the
Atlanta-based home-improvement company raised its outlook
(http://www.marketwatch.com/story/home-depot-raises-guidance-for-second-time-in-2017-2017-08-15)
for the second time this year and reported better-than-expected
second-quarter results. The stock was one of the biggest drags on
the Dow on Tuesday.
Shares of Dick's Sporting Goods Inc.(DKS) plunged 21% after the
retailer reported
(http://www.marketwatch.com/story/dicks-sporting-goods-shares-plummet-after-earnings-miss-profit-warning-2017-08-15)second-quarter
earnings that missed estimates and issued a profit warning.
Coach Inc.(COH) stock slumped
(http://www.marketwatch.com/story/coachs-stock-drops-after-profit-beats-expectations-but-sales-fall-shy-2017-08-15)13%
Tuesday after the luxury-goods retailer reported fiscal
fourth-quarter net profit that rose to $151.7 million, or 53 cents
a share, from $81.5 million, or 29 cents a share, from a year
ago.
Shares of General Electric Co.(GE) lost 0.8% after a Securities
and Exchange Commission filing late Monday showed Warren Buffett's
Berkshire Hathaway Inc.(BRKA) (BRKA) had dropped its position the
conglomerate
(http://www.marketwatch.com/story/berkshire-hathaway-drops-ge-starts-synchrony-position-2017-08-14).
Berkshire also trimmed positions in International Business
Machines Corp.(IBM), Costco Wholesale Corp.(COST) and Sirius XM
Holdings Inc.(SIRI), while buying shares of Synchrony
Financial(SYF).
VF Corp.(VFC), the parent of clothing brands such as North Face
and Timberland, late Monday reached a deal to buy Williamson-Dickie
Manufacturing Co
(http://www.marketwatch.com/story/vf-parent-of-north-face-to-acquire-dickies-owner-in-820-million-apparel-deal-2017-08-14).
for $820 million in cash. Shares rose 0.6%.
TJX Cos.(TJX) rose 1.2% after it reported second-quarter
earnings and revenue that beat expectations
(http://www.marketwatch.com/story/tjx-shares-rise-after-earnings-revenue-beat-2017-08-15).
Other markets: Stocks in Asia closed mostly higher
(http://www.marketwatch.com/story/asian-markets-bounce-back-as-north-korean-threat-recedes-2017-08-14),
while European markets marched higher
(http://www.marketwatch.com/story/european-stocks-cheer-north-koreas-pullback-on-missile-threat-2017-08-15)
on continued North Korea relief.
Oil prices were slightly lower, while gold prices and most other
havens retreated. The 10-year benchmark Treasury note was up firmly
at 2.26% as prices fell. Bond prices move inversely to yields.
(END) Dow Jones Newswires
August 15, 2017 12:28 ET (16:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.