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Overnight Markets: Dow, S&P 500 gain in late turnaround
The Nasdaq ended lower, led by a drop in biotech company Celgene following a disappointing profit forecast.
The Dow Jones and S&P 500 eked out gains on Monday in a late turnaround, but a drop in biotechs and energy shares kept a lid on the market.
The Dow Jones industrial average was up 52 points, or 0.32%, to 16,399, the S&P 500 gained two points, or 0.09%, to 1,924 and the Nasdaq Composite dropped six points, or 0.12%, to 4,638.
Stocks had their worst five-day start to a year ever following mounting investor concerns about declining oil prices and a China-led slowdown in global growth. Investors are now worried about a US earnings recession. Overall, quarterly corporate earnings are expected to have fallen 4.2% from a year ago, according to Thomson Reuters data.
The Nasdaq ended lower, led by a drop in biotech company Celgene (CELG.O), which fell 5.5% following a disappointing profit forecast.
But Apple (AAPL.O) was the biggest positive for the S&P 500 and Nasdaq. It rose 1.6% after reports that its music streaming service hit the 10 million-subscriber mark in six months.
The S&P energy sector fell 2.1% following another sharp drop in oil prices, while the health sector declined 1.2%. Among materials stocks, Freeport-McMoRan (FCX.N) tumbled 20.3% as copper traded more than 2% lower to fall below $1.97 and hit its lowest since April 2009.
Meanwhile, coal company Arch Coal filed for chapter 11 bankruptcy protection and trading in the company’s shares was halted. Consol Energy fell 9%, while Peabody Energy declined 20%.
Shares of McKesson (MCK.N) fell 10.3%, also following a disappointing profit forecast.
After the bell, shares of Alcoa Inc (AA.N) slipped 0.4%. The company reported a quarterly net loss after charges related to shuttering parts of its traditional smelting business.
JP Morgan Chase, Intel Corp. and Citigroup Inc. are among 11 companies scheduled to post quarterly results this week.
In Asia, Chinese markets wavered between positive and negative territory on Tuesday, a day after taking a sharp plunge, while other markets in the region traded mixed.
The Shanghai Composite was up 0.14% after rising as much as 0.9% and falling as much as 0.71% in the first 10 minutes of trade. Hong Kong's Hang Seng index was up 0.59%. In Australia, the main ASX 200 up by 0.51%, while Japan’s the Nikkei 225 was down 1.68%. In South Korea, the Kospi was up by 0.34%.
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