US Stocks Drop on Tuesday After Weak Priceline Forecasts

Wall Street added to losses in early afternoon trading on Tuesday, with the S&P and the Dow weighed down by financial stocks and the Nasdaq slipping on weak forecast from travel services company, Priceline.

The financial sector led the decliners among the 11 major S&P sectors, with a 1.26 percent fall.

U.S. 10-year treasury yields hit a two-week low and briefly fell below the 200-day moving average. [US/]

Goldman Sachs weighed the most on the Dow, while JPMorgan and Bank of America were among the top three drags on the S&P.

Priceline fell 12.1 percent and that of travel-review website operator TripAdvisor hit a five-year low after the companies gave soft fourth-quarter profit forecasts.

Investors are also waiting for more clarity on President Donald Trump’s tax-cut plan as the earnings season winds down.

Republicans plan to bring their tax overhaul bill for a vote next week, U.S. House Ways and Means Committee Chairman Kevin Brady said on Tuesday, adding that he expects the plan to pass.

House Republicans last week unveiled a first draft that proposed a range of cuts aimed at helping businesses, including slashing the corporate rate to 20 percent from 35 percent.

“The market is waiting for the next catalyst, which is the tax bill,” said Adam Sar

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza