US stocks end in a mixed note

Tech-heavy Nasdaq carved out a new record

US stocks closed near session lows on Tuesday, 09 May 2017 as the Dow Industrials and S&P 500 finished lower and the tech-heavy Nasdaq carved out a new record while investors sifted through mostly upbeat earnings reports against a backdrop of falling oil prices and remarks from Federal Reserve speakers.

The Dow Jones Industrial Average finished down 36.50 points, or 0.2%, at 20,975.78, about 140 points below its record close from early March. The S&P 500 index closed down 2.46 points, or 0.1%, at 2,396.92 with seven of the 11 main sectors finishing lower, as utilities, energy and materials stocks led decliners, offsetting gains in the consumer discretionary and industrial sectors. The Nasdaq Composite Index rose 17.93 points, or 0.3%, to close at a record 6,120.59.

Shares of Chevron and Cisco Systems were the largest decliners on the average.

This week's listless trading sessions follow the widely expected victory Sunday by independent centrist Emmanuel Macron in the French presidential election, an outcome that investors appeared to have largely factored in over the previous two weeks.

The Federal Reserve meeting in June is one of the events traders are waiting for to potentially steer the market higher. On Tuesday, several Fed speakers will be closely watched for any hints about the coming policy decision.

As measured by the ICE U.S. Dollar Index, the dollar was up 0.5% at 99.592. A stronger buck makes commodities priced in the currency, like gold, less attractive to buyers using weaker monetary units.

Investors have been increasingly pricing in a U.S. rate increase next month, with fed-funds futures recently showing that markets are pricing in an 88% chance of a rate increase at the Fed's mid-June meeting.

On the data front, investors received March JOLTS and March Wholesale Inventories data. The March Job Openings and Labor Turnover Survey showed that job openings increased to 5.743 million from a revised 5.682 million (from 5.743 million) in February. March Wholesale Inventories increased 0.2% (consensus -0.1%). The prior month's reading was revised to 0.3% from 0.4%. The market doesn't typically pay much attention to this release since the full business inventories report is usually released a short time later.

The March Job Openings and Labor Turnover Survey showed that job openings increased to 5.743 million from a revised 5.682 million (from 5.743 million) in February. March Wholesale Inventories increased 0.2% (consensus -0.1%). The prior month's reading was revised to 0.3% from 0.4%. The market doesn't typically pay much attention to this release since the full business inventories report is usually released a short time later.

Bullion prices ended lower at Comex on tuesday, 09 May 2017. Gold futures dropped on Tuesday to their lowest settlement since mid-March, as strength in the dollar and growing expectations for a U.S. interest-rate hike next month dulled demand for the metal.

June gold fell $11, or 0.9%, to settle at $1,216.10 an ounce, after settling with a meager gain on Monday. The settlement was the lowest in about eight weeks. July silver lost 19.1 cents, or 1.2%, to $16.067 an ounceits lowest settlement of the year.

Oil prices closed lower on Tuesday, 09 May 2017 as traders fretted over rising U.S. crude production as OPEC weighs extend its production-cut agreement late this month.

July Brent crude lost 61 cents, or 1.2%, to $48.73 a barrel on the ICE Futures exchange in London. On the New York Mercantile Exchange, June West Texas Intermediate crude fell by 55 cents, or 1.2%, to settle at $45.88 a barrel, after briefly trading as high as $46.78.

In a monthly report Tuesday, the U.S. government raised its forecast on domestic crude output for this year and next, and cut its 2017 price outlook. Last week, prices for WTI and Brent marked their lowest settlements since the Organization of the Petroleum Exporting Countries agreed on Nov. 30 to cut output for six months at the start of this year.

In the bond market, Treasuries settled slightly lower across the board with the benchmark 10-yr yield (2.41%) adding two basis points.

Tomorrow, investors will receive a batch of economic reports, including the MBA Mortgage Applications Index at 7:00 ET, April Import/Export Prices at 8:30 ET, and the April Treasury Budget at 14:00 ET.

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