US close: Stocks finish day mixed ahead of Powell testimony
US stocks finished mixed on Tuesday ahead of a potentially key testimony from Federal Reserve chief Jerome Powell scheduled for the next day.
The Dow Jones Industrial Average ended the session down 0.08% at 26,783.49, while the S&P 500 was up 0.12% at 2,979.63 and the Nasdaq 100 added 0.53% to 7,826.86.
At the open, the Dow had dropped 109.93 points after the previous week's strong jobs data dampened expectations that the Federal Reserve would cut interest rates by 50 basis points when rate-setters in the US next met at the end of July.
Early in the day, Powell delivered the opening remarks at a Boston Fed conference but, as anticipated, made no references to monetary policy ahead of his semi-annual testimony to the House Financial Services Committee on Wednesday.
However, in an interview with the Wall Street Journal, Philly Fed boss Patrick Harker reportedly said that the US economy was "strong" and that he did not envisage any interest rate cuts in 2019.
Coming just a few days after a much stronger-than-expected jobs report for June raised questions about the central bank's interest rate policy, market participants were keen for fresh insights into Fed policymakers' most current thinking.
On the trade front, talks aimed at ending the trade war between China and the US were set to resume as early as this week.
Larry Kudlow, director of the National Economic Council and an advisor to Donald Trump, said at the end of last week that a face-to-face meeting was "on the cards".
Reuters reported that negotiations would start this week with a phone call between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese vice premier Liu He.
Elsewhere, the row between the UK and US over leaked diplomatic cables describing Donald Trump as "inept" escalated overnight as the president said he would not work with British ambassador Kim Darroch.
In a series of typically bombastic tweets, Trump also slammed outgoing UK Prime Minister Theresa May's handling of Brexit, calling it a "mess" and claiming she had ignored his advice on the subject.
In data, the National Federation of Independent Business' small business optimism index for June dipped to 103.3 - down from the 105.0 recorded in May and marginally above consensus estimates of 103.1.
Pantheon Macroeconomics' Ian Shepherdson said the most important number in the report was the subindex for selling prices, which rocketed to 17 from 10.
"The index usually is responsive to gasoline prices, which dipped last month, pointing to a two-point dip.
“Adjusted for the impact of gas prices, this is the highest reading for the selling price measure since November 2006, and it is consistent, if sustained, with core CPI inflation rising to 2.7% by next spring," he said.
"We assume this jump reflects the increase in tariffs on Chinese imports in May, from 10% to 25%, so we doubt it will reverse anytime soon.”
The headline index, meanwhile, was pulled down by six-point drops in sales expectations and "good time to expand", and a four-point fall in capex plans.
Job openings fell during the month of May, dragged down by declines in the construction and transportation industries.
The measure slipped 49,000 to a seasonally adjusted 7.3m in May, according to the Labor Department in its monthly Job Openings and Labor Turnover Survey.
The job openings rate dipped to 4.6% from 4.7% in April.
In corporate news, PepsiCo shares were down 0.62% despite topping estimates on strong snack and beverage sales, while jeans maker Levi Strauss & Co was ahead 2%.
Network equipment manufacturer Cisco Systems saw shares inch forward 0.27% by the closing bell, after it agreed to buy optical component maker Acacia Communications for $2.6bn.
Dow Jones - Risers
Nike Inc. (NKE) $88.04 1.41%
Goldman Sachs Group Inc. (GS) $207.77 1.00%
Visa Inc. (V) $177.73 0.87%
American Express Co. (AXP) $125.91 0.82%
Walmart Inc. (WMT) $112.88 0.80%
Apple Inc. (AAPL) $201.24 0.61%
Johnson & Johnson (JNJ) $141.45 0.60%
Boeing Co. (BA) $353.09 0.56%
Walt Disney Co. (DIS) $141.61 0.41%
McDonald's Corp. (MCD) $212.09 0.40%
Dow Jones - Fallers
3M Co. (MMM) $165.85 -3.66%
Verizon Communications Inc. (VZ) $56.42 -3.24%
United Technologies Corp. (UTX) $130.39 -1.62%
Pfizer Inc. (PFE) $43.37 -1.25%
Coca-Cola Co. (KO) $51.59 -1.00%
International Business Machines Corp. (IBM) $139.37 -0.88%
Merck & Co. Inc. (MRK) $84.86 -0.86%
Caterpillar Inc. (CAT) $134.30 -0.43%
Home Depot Inc. (HD) $212.00 -0.43%
Travelers Company Inc. (TRV) $153.46 -0.42%
S&P 500 - Risers
Twitter Inc (TWTR) $37.65 3.86%
Advanced Micro Devices Inc. (AMD) $33.15 3.46%
L3Harris Technologies Inc. (LHX) $191.26 3.41%
Western Digital Corp. (WDC) $51.48 3.23%
Under Armour Inc. Class A (UAA) $26.59 2.66%
Fortinet Inc. (FTNT) $80.55 2.55%
Under Armour, Inc. (UA) $23.21 2.47%
Zimmer Biomet Holdings Inc (ZBH) $120.68 2.44%
Micron Technology Inc. (MU) $41.35 2.33%
Dish Network Corp. (DISH) $40.73 2.23%
S&P 500 - Fallers
Mosaic Company (MOS) $23.33 -5.93%
DaVita Inc (DVA) $52.55 -5.33%
L Brands Inc (LB) $26.40 -5.00%
Juniper Networks Inc. (JNPR) $26.31 -3.84%
3M Co. (MMM) $165.85 -3.66%
Royal Caribbean Cr (RCL) $111.19 -3.62%
Cimarex Energy Co (XEC) $57.14 -3.37%
Nordstrom Inc. (JWN) $30.92 -3.31%
Verizon Communications Inc. (VZ) $56.42 -3.24%
Advance Auto Parts (AAP) $155.50 -3.19%
Nasdaq 100 - Risers
Biomarin Pharmaceutical Inc. (BMRN) $83.13 3.41%
Western Digital Corp. (WDC) $51.48 3.23%
Ctrip.Com International Ltd. Ads (CTRP) $37.94 3.10%
Qurate Retail Inc. (QRTEA) $13.02 2.44%
Micron Technology Inc. (MU) $41.35 2.33%
Dish Network Corp. (DISH) $40.73 2.23%
Amazon.Com Inc. (AMZN) $1,988.30 1.84%
Mylan Inc. (MYL) $19.62 1.82%
Facebook Inc. (FB) $199.21 1.76%
Regeneron Pharmaceuticals Inc. (REGN) $307.97 1.69%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $64.76 -1.88%
Electronic Arts Inc. (EA) $92.05 -1.49%
American Airlines Group (AAL) $32.36 -1.31%
Marriott International - Class A (MAR) $139.52 -1.26%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $348.48 -1.19%
Seagate Technology Plc (STX) $46.04 -1.18%
Liberty Global plc Series C (LBTYK) $26.01 -0.99%
Liberty Global plc Series A (LBTYA) $26.74 -0.93%
Intuitive Surgical Inc. (ISRG) $528.27 -0.92%
Fastenal Co. (FAST) $31.57 -0.82%