Damian J. Troise
Stocks flipped between gains and losses on Wall Street Tuesday following a sharp pullback a day earlier.
The Dow Jones Industrial Average was flat after initially rising more than 300 points after the opening bell. The S&P 500 rose 0.2% and the Nasdaq Composite added 0.3%.
Losses in industrial and energy companies kept the market in check, offsetting gains in health care shares. Johnson & Johnson rose 1.2% after reporting that a booster of its one-shot coronavirus vaccine provides a stronger immune response months after people receive a first dose.
Technology companies made gains in a reversal from Monday, when the sector slumped.
The yield on the 10-year Treasury held steady at 1.31%.
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European markets were higher, and Asian markets mostly rose. Chinese markets remained closed for a holiday.
The market sell-off on Monday was prompted in part by worries about heavily indebted Chinese real estate developers and the damage they could do if they default and send ripple effects through markets. That added to a wide range of concerns hovering over investors, including the highly contagious delta variant as well as higher prices squeezing business and consumers.
Wall Street is also gauging how the recovery’s slowdown will impact the Federal Reserve’s policies that have helped support the market and economy. The central bank will release a policy statement on Wednesday, which will be closely watched for any signals on how the Fed will eventually reduce its bond purchases that have helped keep interest rates low.
Several companies are making solid gains after giving investors encouraging financial updates. Ride-hailing company Uber jumped 7.7% after telling investors that it could post an adjusted profit this quarter. Equipment rental supplier Herc Holdings rose 4.9% following a solid long-term growth forecast.
Supply chain problems, which have been hurting a broad range of industries, weighed on several companies. Homebuilder Lennar slipped 1.4% after home deliveries for the third quarter fell short of analysts’ forecasts because of supply chain problems. KAR Auction Services fell 1.2% after pulling its financial forecasts for the year because of the computer chip shortage that has been hurting the auto industry.
Universal Music jumped 37% in its debut on Amsterdam’s stock exchange.
Contributing: Jessica Menton, USA TODAY
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