US markets end lower on Tuesday

16 Oct 2024 Evaluate

The US markets ended lower on Tuesday as some traders looked to cash in on recent strength in the markets. A steep drop by shares of UnitedHealth (UNH) weighed on the Dow Jones Industrial Average, as the health insurance giant plunged by 8.1 percent. The nosedive by UnitedHealth came after the company reported third quarter results that beat expectations but lowered the top end of its full-year earnings guidance. Financial giant Citigroup (C) also showed notable move to the downside despite reporting better than expected third quarter results. Meanwhile, shares of Walgreens Boots Alliance (WBA) skyrocketed by 15.8 percent after the drugstore chain reported fiscal fourth quarter results that exceeded estimates and announced plans to close roughly 1,200 stores over the next three years.

On the economic data front, the Federal Reserve Bank of New York released a report showing regional manufacturing activity has returned to contraction in the month of October. The New York Fed said its general business conditions index tumbled to a negative 11.9 in October from a positive 11.5 in September, with a negative reading indicating contraction. Street had expected the index to decrease to a positive 2.3. Despite the downturn in October, the New York Fed said optimism about the six-month outlook grew strongly, with the index for future business activity jumping to a multi-year high of 38.7 in October from 30.6 in September. On the sectoral front, Semiconductor stocks moved sharply lower over the course of the session, dragging the Philadelphia Semiconductor Index down by 5.3 percent.

Dow Jones Industrial Average fell 324.8 points or 0.75 percent to 42,740.42, Nasdaq dropped 187.1 points or 1.01 percent to 18,315.59 and S&P 500 was down by 44.59 points or 0.76 percent to 5,815.26.