S&P 500, Nasdaq Composite close higher on Tuesday: Live updates

The S&P 500 and the Nasdaq Composite ended Tuesday’s session with modest gains as investors prepared for key inflation data to be released later this week.

The Dow Jones Industrial Average fell 96.82 points, or 0.25%, to close at 38,972.41. The S&P 500 inched up 0.17% to 5,078.18. The Nasdaq Composite added 0.37% to end at 16,035.30.

Retail giant Macy’s advanced about 3.4% after announcing it would close around 150 of its struggling stores following a revenue miss in the prior quarter. Lowe’s gained 1.7% after posting an earnings beat. Zoom Video and Hims & Hers Health rose 8% and 31%, respectively, following earnings reports that exceeded Wall Street expectations.

The market on Tuesday “really doesn’t have a lot of direction,” according to Sam Stovall, chief investment strategist at CFRA Research. Different sectors “are each marching to the beat of the drummer,” he added.

Those moves follow a losing day on Wall Street that pulled the Dow and S&P 500 off record highs seen last week after Nvidia’s stellar earnings report.

“What’s causing tech, consumer discretionary, communication services and financial stocks to do better is that they tend to do well in a interest rate pause period. Also, that’s where the growth is,” Stovall said. “And so I think until the Fed starts to cut interest rates, investors are not going to dramatically diversify into mid- and small-cap stocks — they really want to wait and see.”

The latest consumer confidence numbers also fell on worries regarding a potential labor market slowdown and polarized political landscape, according to a Conference Board gauge released Tuesday. The board’s Consumer Confidence Index declined to to 106.7, which was lower than the downwardly revised 110.9 in January and below the Dow Jones estimate for 115.1.

Data from the U.S. Department of Commerce released on Tuesday showed that orders for long-lasting goods declined more than expected in January, with the leading factor being a large drop in demand for transportation.

Those come before January’s reading of the closely watched personal consumption expenditure price index, as well as data on personal income, slated for release on Thursday. Investors will watch these releases for future clues into the health of the economy and for insights into the path of monetary policy.

Stovall is estimating a month-over-month increase in both core and headline inflation, but a yearly decline in Thursday’s report.

“It’s almost like watching a ping-pong ball drop on a table,” Stovall said.