Stocks sold off sharply in Tuesday's risk-off session. Signs of a resilient labor market created headwinds early on, while weakness in several Magnificent 7 stocks sparked more selling pressure.
One bright spot early on was General Electric, now called GE Aerospace (GE), which completed its highly anticipated spinoff of GE Vernova (GEV), though enthusiasm faded amid broad-market headwinds.
On the economic front, the Job Openings and Labor Turnover Survey (JOLTS) kicked off a busy week of jobs data. A mid-morning release from the Bureau of Labor Statistics showed the number of job openings ticked slightly higher in February, to 8.8 million. Both hires and separations edged up too.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Although there is plenty of speculation that employment has slowed down, recent numbers, including job openings as well as initial jobless claims, continue to indicate that the U.S. labor market has remained stable," says Eugenio Alemán, chief economist at Raymond James.
The good-news-is-bad-news jobs data only makes the Fed's potential rate-cut timeline all the more murkier. Adding to the uncertainty are rising oil prices, which rose 1.7% Tuesday to $85.15 per barrel. Crude oil prices are now up nearly 19% for the year to date and this could keep inflation – and interest rates – higher for longer.
GE completes GE Vernova spinoff
In single-stock news, GE stock was up 3.3% at its intraday high on its first day trading as GE Aerospace. The former industrial giant spun off GE Vernova (GEV), which houses its gas power and renewable energy business. At the close, though, GE was down 2.4%, while GEV shares fell 1.4%.
Still, "GE's decision to split up helped change sentiment on the name. Its price performance is much more encouraging since it decided to split, with upside accelerating as the spinoffs came to fruition," writes Dan Burrows, senior investing writer at Kiplinger, about the GE spinoff. "GE's annualized total return easily tops the S&P 500 over the past five years, and doubles the broader market's returns for the trailing three-year period."
Tesla slides on Q1 deliveries miss
Tesla (TSLA) slid 4.9% after the electric vehicle maker said it delivered 386,810 vehicles in the first quarter. This was down 8.5% year-over-year and much less than the 457,000 vehicles analysts were expecting, according to FactSet.
In a press release, Tesla pointed to factory shutdowns as a result of the Red Sea conflict and an arson attack at the Gigafactory Berlin as reasons for the drop in deliveries.
Fellow Mag 7 stocks Nvidia (NVDA, -1.0%), Alphabet (GOOGL, -0.6%) and Microsoft (MSFT, -0.7%) took notable slides today.
UnitedHealth sinks on Medicare news
Elsewhere, several large-cap healthcare stocks tumbled after the Centers for Medicare and Medicaid Services said its reimbursement rate for Medicare Advantage health plans will increase by 3.7% next year. This is unchanged from the agency's January projection and lower than some were hoping for.
Humana (HUM, -13.4%), CVS Health (CVS, -7.2%) and UnitedHealth Group (UNH, -6.4%) all finished Tuesday with significant losses.
UNH's large drop – which cut $29 billion from its market cap – made it the worst Dow Jones stock. And at $458 a share, it has the biggest impact on the price-weighted Dow Jones Industrial Average. As a result, the 30-stock index fell 1.0% today to 39,170.
The broader S&P 500 shed 0.7% to 5,205, while the rate-sensitive Nasdaq Composite slumped 1.0% to 16,240 as the 10-year Treasury yield hit its highest level since November.
Related content
- When Is the Next Jobs Report?
- Here's What's at Stake in Disney's Proxy Battle With Nelson Peltz
- Kiplinger's Earnings Calendar for This Week
-
Affordability Crisis: Florida Votes to Increase Property Tax BreakState Tax Property taxes have skyrocketed nearly 60% within the last five years in Florida, and its constituents are finally doing something about it.
-
Average Net Worth by Age: How Do You Measure Up?Financial advisors discuss the secrets to growing your net worth over time.
-
Three Charitable Giving Strategies for High-Net-Worth IndividualsIf you have $1 million or more saved for retirement, these charitable giving strategies can help you give efficiently and save on taxes.
-
The Wealth-Building Powers of Health Savings Accounts (HSAs)Health savings accounts could be the most underutilized wealth-building tool out there. Here’s who should use them and how to maximize their benefits.
-
Seven Ways to Be an Absolute Jerk as a LawyerHere's what law students need to know about damaging their relationships with other lawyers and judges and running up the bill for clients.
-
Stock Market Today: Stocks Are Positively Mixed to Open DecemberTechnology led the way Monday as two of the three main equity indexes closed higher.
-
The Best Retail Stocks to Buy This Holiday SeasonE-commerce is a growing trend, but most folks still prefer to shop in stores. That makes these dominant retail stocks worth a closer look.
-
One Good Way to Withdraw Retirement Assets (and a Bad One)Don't withdraw retirement assets haphazardly. Managing distributions intentionally can lower your taxes, conserve your wealth and reduce Medicare premiums.
-
What Is Capital Gains Tax Deferral?Spoiler alert: It's the secret weapon of savvy real estate investors. Here's how it works and details about the tools you need to do it.
-
Don't Leave Your Heirs an IRA Tax BombYour traditional IRA has served you well, but when your heirs inherit it, watch out. Consider some of these strategies to minimize their tax burdens.
