New home sales beat expectations
New home sales rose 4.1% to 683,000 in April, according to data released Tuesday.
That came in above a Dow Jones estimate of 669,000. Sales for March were revised to 656,000
Elsewhere, Richmond Fed manufacturing data for May came in at -15, the lowest reading since February.
— Samantha Subin
May PMI comes in lower than expected
The May reading for the Purchasing Managers Index (PMI) came in at 48.5. That was lower than the 50.0 consensus estimate, according to economists polled by Dow Jones.
— Sarah Min
Markets are slowly taking Fed rate cuts off the table
Markets are reacting to recent hawkish talk from Federal Reserve officials, now pricing in only one rate cut this year.
Traders in the fed funds futures market were pricing in just a 23.4% chance of an interest rate increase at the June 13-14 Fed meeting, according to the CME Group.
However, they also now see at most one decrease by the end of the year, assigning a 58.3% probability that the central bank will drop the funds rate to a 4.75%-5% target.
In recent weeks, markets had been pricing in up to three cuts. However, policymakers in recent days have spoken against the likelihood of a loosening of policy, with Minneapolis Fed President Neel Kashkari telling CNBC on Monday that it’s possible rates will rise if inflation doesn’t slow.
— Jeff Cox
Stocks fall at the open
The Dow slid more than 100 points to start Tuesday’s session, while the S&P 500 and Nasdaq dipped 0.5% each.
— Fred Imbert
Apple announces Broadcom chip deal
Broadcom shares jumped 3% before the bell on news that its signed a multibillion-dollar deal with Apple to create 5G components in the U.S.
Through the multi-year deal, the companies will design and build the products in across several U.S.-based facilities, including Fort Collins, Colorado.
Apple shares dipped 0.6%. The company said the deal stems from its 2021 plan to invest $430 billion in the U.S. economy.
— Samantha Subin
Yelp shares jump in the premarket
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