The Dow Jones Industrial Average reversed lower Tuesday on fresh U.S.-Iran peace hopes that hit oil stocks, while homebuilders shined on a separate move. The S&P 500 pared an early advance while the Nasdaq climbed to new highs, on pace for another record close.
The Dow industrials reversed lower, down 0.3%, as new U.S.-Iran peace hopes weighed on oil stocks. Homebuilder stocks shined even as oil names tumbled.
Meanwhile the S&P 500 squeezed out a gain of 0.1% after slipping off its opening highs. The tech-heavy Nasdaq composite gained 0.5% in morning trading, hitting new highs once again.
Homebuilders Rally, Oil Names Lag
The SPDR S&P Homebuilders ETF paced the upside with a gain of 2%, though shares remain down nearly 6% for the year. The SPDR S&P Retail ETF followed with a gain of nearly 2%, while the Transportation ETF added 1.5%.
Energy and insurance names struggled instead. The SPDR S&P Oil & Gas Exploration & Production ETF fell nearly 1%, and the SPDR S&P Insurance ETF declined by a similar margin. Chevron and AMD were early losers, while Cisco Systems and JPMorgan Chase dropped roughly 3% each; Amgen, Sherwin-Williams and Alphabet each rose nearly 2%.
Iran's Hormuz Offer Pressures Crude
West Texas Intermediate crude futures slid 1% to around $94.80 a barrel, threatening a fifth straight losing session. Reports said Saudi Arabia is looking to reopen a critical pipeline this week.
According to Japanese news wire Kyodo, Iran offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure, citing a senior Iranian government official.
Nasdaq Extends Its Record Pace
Both Nasdaq indexes traded above their previous closing records. The Nasdaq Composite rose 0.43% after closing at a record high the prior session, while the Nasdaq 100 climbed further after finishing just shy of its own record close.
Yields and Bitcoin Hold Steady
The 10-year Treasury yield slipped one basis point to 4.95%. Bitcoin took a breather after the prior session's gain, dipping fractionally to around $86,200.
Sources: Investor's Business Daily, Investinglive
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