The Nasdaq inched higher Tuesday to extend its winning streak to seven days. But the Dow and S&P 500 paused, snapping their six-day winning streak as investors rotated out of big-cap tech stocks into real estate and industrial stocks.
The blue-chip index and S&P ended just slightly below where they had begun the day. The Nasdaq eked out a gain of one-tenth percent.
O'Neil Global Advisors Chief Investment Officer Randy Watts senses a major pullback ahead.
"I think the market is extended. I think it's looking for an excuse to correct. I think that correction has been put off a little bit by the stimulus bill that's coming down the pike and also the fact that we've had such a good earnings season where 2021 earnings have risen from an estimate of $165 to $170, but I do think the market is really getting set up for a 5 to 10% correction."
Shares of lipstick maker Coty dropped 15%. Weak demand for makeup as customers stayed at home drove down quarterly revenue 16%.
Take-Two Interactive shares fell. The videogame publisher's quarterly adjusted sales dropped, and the company did not announce any new releases, frustrating investors.
After the markets closed, Twitter shares rose. The microblogging company's quarterly profit and revenue increased and beat estimates. But it also warned that while the number of users grew 27%, this rate would likely slow.