US Stocks Mixed Following December Trade Balance Data

Wall Street stocks were mixed early on Tuesday as market participants digested December’s trade balance figures and continued to look ahead to key inflation data scheduled for release later in the week.

As of 1510 GMT, the Dow Jones Industrial Average was up 0.13% at 35,135.36, while the S&P 500 was 0.22% lower at 4,473.80 and the Nasdaq Composite came out the gate 0.41% softer at 13,958.14.

The Dow opened 44.23 points higher on Tuesday, reversing yesterday’s small drop. Tuesday’s primary focus was news that the US goods and services trade deficit rose to $80.7bn in December, according to the Bureau of Economic Analysis and the Census Bureau, taking 2021’s full-year reading to a record-shattering $859.0bn.

The rise from last month’s print of $79.33bn, which was smaller than the $82.8bn reading expected by economists, comes as exports rose to $228.1bn, while imports increased to $308.9bn.

On the macro front, small business confidence fell to an 11-month low in January, according to the National Federation of Independent Business, as ongoing worker shortages and increase prices for raw materials weighed on sentiment.

The NFIB’s small business optimism index fell 1.8 points to 97.1 last month for its lowest reading since February 2021, with half of the 1,504 small businesses participating in the poll reportedly raising staff compensation – the highest reading for that particular metric in 48 years.

Also in focus, Treasury yields hit fresh Covid-era highs on Monday and were higher again on Tuesday, with the benchmark 10-year Treasury note sitting at around 1.952% – a level not seen since before the coronavirus pandemic.

In the corporate space, the co-founder of embattled fitness firm Peloton Interactive is stepping down as chief executive, it was confirmed on Tuesday. John Foley, who has led the US fitness specialist since it was founded a decade ago, will be replaced by Barry McCarthy, the former chief financial officer of Spotify and Netflix. Foley will become executive chair.

Warner Music posted an increase in first-quarter profits thanks to improved revenues across its publishing and digital divisions, while Harley-Davidson delivered a fourth-quarter revenue beat and Pfizer reported full-year revenues of $81.3bn and adjusted diluted earnings of $4.42 per share, both of which were roughly in line with consensus estimates. Chipotle, Peloton and Lyft will all report earnings after the close.