What you need to know…

The S&P 500 Index ($SPX) (SPY) Tuesday closed down -0.58%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.37%.

Stock indexes Tuesday posted moderate losses.  A sell-off in bank stocks Tuesday weighed on the overall market after JPMorgan Chase CEO Dimon said the U.S. banking crisis is "not yet over" and will be felt for years.  Stocks were also under pressure on concerns the labor market is deteriorating after Tuesday’s U.S. economic news showed Feb JOLTS job openings fell to their lowest in 1-3/4 years.

Tuesday’s weaker-than-expected Feb JOLTS job openings and Monday’s economic news that showed the U.S Mar ISM manufacturing index contracted more than expected has pushed T-note yields lower and bolstered expectations that the Federal Reserve may be approaching the end of its interest rate hike campaign.

U.S. Feb JOLTS job openings fell -632,000 to a 1-3/4 year low of 9.931 million, showing a weaker labor market than expectations of 10.500 million.

U.S. Feb factory orders fell -0.7% m/m, weaker than expectations of -0.5% m/m.

Citigroup said that about $20 billion of new long positions in the S&P 500 were added over the past week, with positioning turning clearly bullish.  Also, there's still $15 billion of losing short positions to clear, which could support the market in the near term.  However, JPMorgan Chase said headwinds from the recent bank turbulence, an oil shock, and slowing growth are poised to send stocks back toward their 2022 lows.

Global bond yields Tuesday fell back from early highs and turned mixed on the weaker-than-expected U.S. Feb JOLTS job openings report.  The 10-year T-note yield fell -6.7 bp to 3.344% and posted a 1-week low of 3.333%.  The 10-year German bund yield fell -0.5 bp at 2.249%.  The 10-year UK gilt yield rose +0.5 bp to 3.434%. 

Overseas stock markets Tuesday settled higher.  The Euro Stoxx 50 today closed up by +0.10%. China’s Shanghai Composite stock index closed up +0.49%, and Japan’s Nikkei Stock Index closed up +0.35%. 

Today’s stock movers…

Industrial stocks sold off Tuesday as this week’s weaker-than-expected U.S. economic news on Mar ISM manufacturing, Feb JOLTS job openings, and Feb factory orders signal an economic slowdown.  Steel Dynamics (STLD) closed down more than -8% to lead losers in the S&P 500.  Also, United Rentals (URI) closed down more than 7%, and Carrier Global (CARR) closed down by more than -6%. In addition, Caterpillar (CAT) closed down more than -5% to lead losers in the Dow Jones Industrials.  Finally, Trane Technologies Plc (TT), Ingersoll Rand (IR), and Johnson Controls International (JCI) closed down more than -5%. 

Bank stocks retreated Tuesday after JPMorgan Chase CEO Dimon said the U.S. banking crisis is "not yet over" and will be felt for years.  First Republic Bank (FRC) and Comerica (CMA) closed down more than -5%. Also, Zions Bancorp (ZION) and KeyCorp (KEY) closed down more than -4%. In addition, Fifth Third Bancorp (FITB), Lincoln National Corp (LNC), Citizens Financial Group (CFG), and Truist Financial (TFC) closed down more than -3%.

Acuity Brands (AYI) closed down more than -11% after reporting Q2 net sales of $943.6 million, weaker than the consensus of $958.6 million.

Micron Technology (MU) closed down more than -3% to lead losers in the Nasdaq 100 and has fallen for three consecutive sessions after the Chinese government last Friday said that it’s conducting a search of Micron to ensure the integrity of its information infrastructure supply chain as China retaliates against the U.S. for moving to prevent China from accessing advanced technology. 

Allegion Plc (ALLE) closed down more than -5% after Citadel Advisors LLC reported that it took a net short position of 1.11 million shares or 1.26% of the company’s stock as of April 3.

Charter Communications (CHTR) closed down more than -2% after KeyBanc Capital Markets downgraded the stock to sector weight from overweight.

Newmont (NEM) closed up more than +3% to lead gainers in the S&P 500 as mining stocks rallied after gold prices climbed to a 1-year high. 

Extra Space Storage (EXR) closed up more than +3% after Raymond James added the stock to its favorite ideas list and upgraded the stock to a strong buy from outperform.

ServiceNow (NOW) closed up more than +2% after Robert Baird & Co upgraded the stock to outperform from neutral.

Warner Bros. Discovery (WBD) closed up more than +2% after a report said the company is close to a deal for a new online TV series based on JK Rowling’s Harry Potter books.

Etsy (ETSY) closed up more than +1% after Piper Sandler upgraded the stock to overweight from neutral. 

Across the markets…

June 10-year T-notes (ZNM23) on Tuesday closed up +25.5 ticks, and the 10-year T-note yield fell by -6.7 bp to 3.344%.  June T-notes Tuesday rallied to a 1-week high, and the 10-year T-note yield fell to a 1-week low of 3.333%.  T-note prices Tuesday erased early losses and moved higher after U.S. economic news showed Feb JOLTS job openings and Feb factory orders fell more than expected, adding to signs of an economic slowdown that may prompt the Fed to end its interest rate hiking campaign.  Weakness in stocks Tuesday also fueled some safe-haven demand for T-notes.  

Stocks Modestly Lower As U.S. Job Openings Fall To A 1-3/4 Year Low

Stock Indexes Slide After Factory Orders Decline More Than Expected

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