Stocks on Wall Street retreated for a second straight session Tuesday. The worldwide spike in coronavirus cases slammed travel sectors like airlines and cruise liners. Investors instead sought safety in defensive stocks like real estate and utilities.
Vespula Capital CEO Jeff Tomasulo says the corporate earnings such as those put out so far by the banks are not justifying the high stock valuations. “
They had blowout earnings. But is it enough to really kind of drive the stock higher at these levels? In my eyes, no. And this is why we're having a risk off kind of day that we're seeing in the market now.”
The Dow shed three-quarter percent, The S&P 500 fell seven-tenth percent, and The Nasdaq dropped nine-tenth percent.
United Airlines was the biggest decliner on the S&P, falling nearly 9%. The carrier reported a larger-than-expected quarterly adjusted net loss.
Possible train war ahead: Kansas City Southern shares surged 15% after Canadian National offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier bid from Canadian Pacific.
After the markets closed, shares of Netflix dropped sharply. The video streaming company added fewer paid subscribers than expected in the latest quarter as it faced competition from streaming rivals like Disney+ and HBO Max and theaters that reopened.