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Stocks - S&P 500 Ends Higher as Tech Tees up Gains

Published 03/12/2019, 04:01 PM
Updated 03/12/2019, 04:51 PM
© Reuters.

Investing.com - The S&P closed higher Tuesday as tech stocks continued to rack up gains, offsetting ongoing weakness from Boeing.

The S&P 500 gained 0.3%, while the Nasdaq Composite gained 0.44%. The Dow Jones Industrial Average fell 0.38%, mainly due to Boeing's slump.

Tech stocks extended their gains from a day earlier, led by Apple, up 1.1% on the day.

Apple (NASDAQ:AAPL) is reportedly set to unveil its video streaming service to rival Netflix and Disney and a streaming news subscription service at an event scheduled for March 25 at its Cupertino, Calif. headquarters.

Apple's video streaming service could reach 100 million subscriptions in three to five years, bringing $7 billion to $10 billion in annual revenue over time, Wedbush Securities said in a note.

The broader tech market was also propped up by gains in semiconductor stocks thanks to Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).

Boeing (NYSE:BA), meanwhile, added to losses from a day earlier, following reports that more countries had grounded the aircraft maker's 737 Max 8 planes. Its shares fell 6.15% and are off 11.15% since Friday.

American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV), both of which use Boeing's 737 Max airplanes in the their fleet, fell more than 2%.

On the trade front, U.S. trade representative Robert Lighthizer said the U.S. and China were in the "final weeks" of trade talks, but he admitted that a successful outcome is not assured.

Gains in retailers, meanwhile, were stifled by a slump in Dick’s Sporting Goods (NYSE:DKS) as the retailer's downbeat outlook and weak margin growth offset better-than-expected fourth-quarter results. Shares fell 11%.

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In other corporate news, Tesla (NASDAQ:TSLA) fell 2.6%, adding to losses from a day earlier as Morgan Stanley said it sees “an air pocket in demand that is coming earlier than we expected.” The bank cut its price target on Tesla to $260 from $283.

On the economic front, tame U.S. inflation data added to investor expectations the Federal Reserve will continue to hold off raising interest rates, supporting sentiment on stocks.

In geopolitical news, U.K. lawmakers rejected Prime Minister Theresa May's renegotiated Brexit withdrawal agreement by a resounding majority.

But the result had a somewhat muted impact on stocks as it was widely expected after Attorney General Geoffrey Cox warned early Tuesday that the risk of the U.K. being trapped in a backstop arrangement, to avoid a hard Irish border after Brexit, remained "unchanged."

Top S&P 500 Gainers and Losers Today:

Devon Energy (NYSE:DVN), Whirlpool (NYSE:WHR) and Newmont Mining (NYSE:NEM) were among the top S&P 500 gainers for the session.

F5 Networks NASDAQ:FFIV), Boeing (NYSE:BA) and American Airlines (NASDAQ:AAL) were among the worst S&P 500 performers of the session.

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