Stocks were mixed on Tuesday as market participants began the holiday-shortened week. The Nasdaq Composite rose above 17,000 for the first time, advancing nearly 0.6% by market close. Meanwhile, the Dow Jones Industrial Average dropped over 200 points and the S&P 500 Index rose above a flatline.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): +0.02% or +1.32 points to 5,306.04
Dow Jones Industrial Average (NYSE: DIA): -0.55% or -216.73 points to 38,852.86
Nasdaq Composite Index (NASDAQ: QQQ): +0.59% or +99.09 points to 17,019.88
On the Economic Front:
Consumer Confidence unexpectedly rose in May, according to The Conference Board's survey released Tuesday, with its Present Situation Index increasing to 102 from last month's upwardly revised print of 97.5. Still, the survey's 12-month inflation outlook ticked higher to 5.4%, with the shares of those expecting rising interest rates advancing to 56.2%.
"Confidence improved in May after three consecutive months of decline," said Dana M. Peterson, chief economist at The Conference Board, in a statement. "However, the strong labor market continued to bolster consumers' overall assessment of the present situation. Views of current labor market conditions improved in May, as fewer respondents said jobs were 'hard to get,' which outweighed a slight decline in the number who said jobs were 'plentiful.'"
In the News:
Netflix's (NASDAQ: NFLX) price target set by Evercore ISI was raised on Tuesday to $700 from $650 after a survey showed bullish trends for the streaming giant.
"Netflix is in the strongest position financially, fundamentally and competitively that we have ever seen," analyst Mark Mahaney said in a note. "And we see the Live Events and Gaming two very promising long-term greenfield revenue opportunities."
T-Mobile (NASDAQ: TMUS) plans to acquire U.S. Cellular (NYSE: USM) in a deal worth $4.4 billion, with T-Mobile set to gain about 30% of U.S. Cellular's wireless spectrum as part of the deal. The major U.S. wireless provider plans to use the deal to improve coverage in rural areas, the two companies announced, with T-Mobile also allowing U.S. Cellular customers to keep their current plans or switch to a new T-Mobile plan.
GameStop (NYSE: GME) shares popped higher on Tuesday after the video game retailer announced it made about $933 million from its selling of 45 million common shares. The sale comes after social media star Roaring Kitty, who was behind the first meme stock short squeeze in 2021, posted for the first time in nearly three years. GameStop shares are currently up over 45% year-to-date.
For Wednesday:
Market participants will react to the Federal Reserve's Beige Book release on Wednesday as well as more Fedspeak as the month nears its end.