The Dow Jones Industrial Average swung between modest losses and modest gains in afternoon trading on Tuesday as the indexes were mixed. But shares ultimately traded higher into the close. The Nasdaq showed similar action while the S&P 500 led the upside among the major indexes. Investors have been careful as the Federal Reserve started its two-day meeting on Tuesday.
Dow Jones Today
Investors are now bracing for the Federal Reserve's interest rate hike on Wednesday. While most investors, analysts and economists expect a half-point rate increase, the bigger question will be how the Fed plans to manage its balance sheet. Fed officials have suggested the central bank will shed $95 billion each month in bond holdings, which should also put upward pressure on rates.
The Fed's statement comes out at 2 p.m. ET Wednesday.
At the close Tuesday, the Dow Jones industrials were up 0.2%, while the Nasdaq also rose 0.2%. The S&P 500 advanced 0.5% and the small-cap Russell 2000 led the upside, rising 0.9%. Volume was lower on the Nasdaq and on the NYSE vs. the same time on Monday. Elsewhere, the yield on the 10-year Treasury note slipped a few points, to 2.96%.
The Innovator IBD 50 ETF, a benchmark for growth stocks, rose 1.5%, outpacing the major indexes. A chemicals company in the MarketSmith Growth 250 index also scored a notable breakout on Tuesday.
Shares of The Chemours Company rose over 17% Tuesday in heavy volume after the company announced earnings on Monday. Shares briefly broke out above a 38.97 buy point. The stock also shows a blue dot on its RS line, which indicates the relative strength line has hit a new high. This is a bullish sign alongside the breakout.
As for Dow Jones stocks, Dow components Boeing and JPMorgan led the upside with gains of 3.3% and 2.1%, respectively. Both stocks remain well below their key 200-day and 50-day lines. On the downside, shares of Nike led with a loss of 2.6%.
Fertilizer Stocks Trade Mixed
Several top fertilizer stocks were mixed after some firms reported first-quarter results.
Mosaic reversed from early losses after sales came in below estimates. Shares traded up more than 8%. The firm noted it sees supply-chain problems extending into Q2. Elsewhere, Nutrien missed the consensus earnings estimate, but raised its full-year profit forecast. Shares traded up nearly 7% and are finding support at the 10-week moving average.
FMC fell after the agricultural chemicals and fertilizer firm exceeded earnings expectations but reduced its guidance. The stock moved below its 50-day moving average in heavy volume, in what appears to be a sell signal.
Travel Stocks Move On Earnings
A handful of travel-related stocks are expected to report earnings this week, including Airbnb on Tuesday, followed by Booking Holdings on Wednesday.
Airbnb announced first-quarter results that beat estimates late Tuesday. The company noted how easing virus-related restrictions helped boost business during the quarter. Shares of Airbnb traded up 4% in after-hours trading following the results.
The firm reported revenue of $1.51 billion vs. $1.45 billion expected. This also represented a rise of 70% year over year.
Hilton Worldwide exceeded first-quarter earnings estimates before Tuesday's open but revenue and earnings guidance missed expectations. Earnings climbed to 71 cents from 2 cents a year ago. Revenue jumped 97% to $1.72 billion. Shares sold off nearly 5% and are now just below the 50-day line.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
