S&P 500 Today Ends 8-Session Win Streak| Investor’s Business Daily

The S&P 500 today ended an eight-day win streak, as the index closed with the largest loss since March 22, while Facebook won some love from a Wall Street analyst.




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The S&P 500 lost 0.6%. Cyclical stocks led the market lower after trade tensions heated up between the U.S. and the European Union.

U.S. Trade Representative Robert Lighthizer proposed tariffs on EU products in retaliation for aircraft subsidies. The news showed the Trump administration is prepared to widen a new front in the trade war just as negotiators close in on a trade pact with China.

Industrial Select Sector SPDR Fund (XLI) fell 1.4%. The ETF is near the 77.23 buy point of a cup with handle. Energy, transportation, retail, financial, consumer discretionary and materials sectors also were broadly weaker.

The Nasdaq composite fell 0.6%. Small caps lagged considerably, with the Russell 2000 off 1% at the closing bell. The small-cap benchmark is back below its 200-day moving average.

Boeing Drags The Dow, Again

The Dow Jones Industrial Average gave up 0.7% as Boeing (BA) again dragged the industrials. Boeing reported a sharp drop in first-quarter airline-jet deliveries, the latest impact from the worldwide grounding of the new 737 Max airplane. Boeing closed 1.5% lower and 17% off its prior high.

Early figures showed volume rose on the NYSE and fell on the Nasdaq. Declining stocks led advancers by about a 3-1 ratio on the NYSE and by nearly 14-to-5 on the Nasdaq.

Communications Services was the best S&P sector, with the Communication Services Select Sector SPDR Fund (XLC) up 0.3%. Facebook (FB) was the main driver, as shares of the social media company rose 1.5% to extend a rebound from a steep correction. Facebook makes up nearly 19% of the Communications Services ETF.

A Morgan Stanley analyst raised his price target on Facebook to 195 from 190 and kept an overweight rating, citing gains the company has made in monetizing its Facebook Stories platform.

The Innovator IBD 50 fell 0.6%, in line with the broad market.

A few stocks attempted breakouts Tuesday but fizzled under the market’s selling pressure. Tempur Sealy (TPX) rose past a 59.83 buy point, but the mattress company closed below the entry in mediocre volume.

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