Magnificent News: Stocks fall a second day | Investors weigh U.S.-China tensions

Tuesday, August 2, 2022

Stocks fall a second day | Investors weigh U.S.-China tensions | Starbucks earnings are here

TUE, AUG 02, 2022

EVENING BRIEF

AS OF TUE, AUG 02, 2022 • 05:06 ET

DJIA		32396.17
		-1.23%	-402.23

S&P 500		4091.19
		-0.67%	-27.44

NASDAQ		12348.76
		-0.16%	-20.22

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	160.01	-1.50	-0.93%
INTC	36.01	-0.95	-2.57%
MSFT	274.82	-3.19	-1.15%

S&P 500
NAME	LAST	CHG	%CHG
AMD	99.29	+2.51	+2.59%
F	15.16	-0.18	-1.17%
AMZN	134.16	-1.23	-0.91%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	99.29	+2.51	+2.59%
AMZN	134.16	-1.23	-0.91%
AAPL	160.01	-1.50	-0.93%

EDITOR'S NOTE

Stocks slipped Tuesday amid tension between the U.S. and China after House Speaker Nancy Pelosi touched down in Taiwan and multiple Federal Reserve leaders commented on the central bank's upcoming moves.

Pelosi is the most senior U.S. official to visit Taiwan since Newt Gingrich's 1997 trip. Ahead of her travels, China warned against the visit.

Later in the day, markets churned and fell on hawkish comments from central bank leaders including San Francisco Fed President Mary Daly, Chicago Fed President Charles Evans and Cleveland Fed President Loretta Mester.

All noted that further rate hikes are ahead as the central bank looks to combat high inflation.

This session marked the second day in a row that stocks faltered following a solid gain in July, which many analysts are calling a bear market rally. Another could be on its way, according to Katie Stockton, founder and managing partner of Fairlead Strategies.

"We have had some minor breakouts and those breakouts could contribute to a more extended relief rally," she said on CNBC's "Closing Bell" Tuesday. "But it won't be like the one seen in July."

The next key resistance level for the S&P 500 is at about 4,270, a gain of more than 4% from where the index closed Tuesday, she said. It may be hard for investors to catch, however.

"With these relief rallies in bear market cycles, they're super difficult to take advantage of," Stockton said. "You have to be there on the right day."

She added that she sees the June dip on the S&P 500 as an intermediate low. While gains in a bear market rally can be impressive, they usually give way to lower lows, Stockton said.