Monday's rally was fun. Tuesday, on the other hand, brought a sea of red as the S&P 500 closed down 1.05%, the Dow Jones Industrial Average down 0.97% and the Nasdaq down 1.19%.
Oil also gave up Monday's gains and fell 4.64% to $31.84 a barrel following statements made by Saudi Oil Minister Ali al-Naimi at the CERAweek conference in Houston, suggesting production cuts would be unlikely. Not surprisingly, energy names were the biggest laggards in the S&P 500 today.
Macy's (M) managed to beat analyst estimates and its own lowered guidance as it posted adjusted earnings of $2.09 per share for the fourth quarter, which exceeds the $1.85 to $1.90 range it projected at the end of last month. In an interview with Real Money's Brian Sozzi, Macy's CEO Terry Lundgren spoke of plans to invest heavily in its top 150 stores and to use lessons from those stores across the business.
"Frankly, it's easier to support and get additional growth from stores in the best locations and the best centers than it is to turn around a store that is not in a center that is growing," Lundgren said. Shares of Macy's closed up 3% on Tuesday.
JPMorgan Chase (JPM) held its annual investor day conference on Tuesday and shed light on what it's like to be a big bank operating through a rough start to 2016. CEO Jamie Dimon reportedly said he'd buy JPMorgan stock at $48 "all day long," referencing his recent purchase of $26.6 million of company stock. Investment banking CEO Daniel Pinto said revenue from sales and trading fell about 20% from the same period last year. Shares of the bank closed down 4.18% on Tuesday while the broader KBW Nasdaq Bank Index closed down 2.89%.
Shares of Honeywell (HON) and United Technologies (UTX) both closed down nearly 1% on Tuesday following talk that the two had discussed plans to merge. While both companies acknowledged that such talks had occurred over the last year, things took a "he said, she said" turn at the end of the day. Earlier on Tuesday, United Technologies said a deal would "face insurmontable regulatory obstacles" and Honeywell said at the end of the day it does not see the regulatory process as a "materical obstacle" to the transaction.
On Wednesday, Real Money will be paying close attention as Chesapeake Energy (CHK), a member of our "Stressed Out" index, reports earnings. Analysts surveyed by Bloomberg are predicting fourth-quarter losses of $0.16 per share on revenue of $2.6 billion.