Stocks traded lower Tuesday, with investors injecting a note of caution into the markets following the previous sessions double-set of all-time highs.
The Dow Jones Industrial Average fell 171 points, or 0.47%, to 36,261, while the S&P 500, which closed at an all-time high for the eighth consecutive session, extending the longest record run since 1997, slipped 0.44%
The tech-heavy Nasdaq fell 0.60%.
President Joe Biden reportedly interviewed Fed Governor Lael Brainard for the top job at the central bank, which comes open early next year.
The U.S. Labor Department’s producer price index, which measures wholesale prices, rose 0.6% in October, translating into an 8.6% increase year over year.
Mike Loewengart, managing director of investment strategy with E*Trade Financial, said that though there were no surprises with the PPI read, “it could be viewed as somewhat of a disappointment in that inflation hasn’t eased up in the slightest.”
“And punctuated by the highest year-over-year number we’ve seen in a decade, there’s no denying that pricing pressure looms large,” he said. “But with CPI on deck, investors may already have their sights set on any potential positive momentum from the read tomorrow.”
PayPal Holdings PYPL shares fell after the payments group posted stronger-than-expected third-quarter earnings but provided a tepid initial outlook for 2022 profits.
AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report shares were down after the movie theatre chain posted a narrower-than-expected third quarter loss while cautioning there are “more challenges ahead of us still to be met,”
Robinhood Markets (HOOD) – Get Robinhood Report shares slipped after the online trading group reveal a cybersecurity breach that may have affected more than 5 million customers.
Robinhood said the breach was caused by a ‘unauthorized party’ who “socially engineered a customer support employee by phone and obtained access to certain customer support systems” and was able to obtain the email address of 5 million customers, alongside the full names of a different group of 2 million clients.