Stocks were mixed in early trading Tuesday after Wall Street hit a new high the day before. Investors continue to closely watch the bond market, with even minute changes in bond yields causing stocks to fluctuate.
Investors are also working through economic data that showed Americans cut back on spending last month.
The S&P 500 index was up 0.2% as of 10:05 a.m. Eastern. A sixth-day of gains for the index would match it’s longest winning streak so far this year. The Dow Jones Industrial Average was down 0.3%, pulled lower by energy companies and banks as bond yields and oil prices fell. The technology-heavy Nasdaq Composite rose 0.9%, lifted by big technology names like Apple and Amazon that dominate the index.
Americans spent less last month, partly due to bad weather in parts of the country that kept shoppers away from stores, and partly due to their December and January stimulus payments running out. Retail sales fell a seasonally adjusted 3% in February from the month before, the U.S. Commerce Department said Tuesday. February’s drop followed soaring sales in January as people spent $600 stimulus checks sent at the end of last year. In fact, the Commerce Department revised its January number upwards to 7.6% from its previously reported rise of 5.3%.
Meanwhile severe winter weather pushed industrial production down a sharp 2.2% in February, reflecting a big decline in factory output.
Investors are betting big that this economic malaise will dissipate as spring arrives for most of the country and more Americans get vaccinated. Further President Joe Biden’s administration started sending out $1,400 stimulus checks to individuals last weekend.
Some investors fear the stimulus could translate into inflation down the road, however, which has caused investors to sell bonds. The yield on the 10-year U.S. Treasury note was down to 1.59% after rising above 1.60% last week. Bond prices fall as yields rise.
European shares were mostly higher despite news that AstraZeneca’s coronavirus vaccine, which was being used heavily in Europe and Asia, had reports blood clots after usage. The vaccine’s usage is suspended in Europe.
In energy trading, benchmark U.S. crude lost $1.34 to $64.04 a barrel in electronic trading on the New York Mercantile Exchange. It lost 22 cents to $65.39 on Monday.
The Associated Press contributed to this article