U.S. stocks hover less than 1% from records as Wall Street tries to shake off Middle East worries

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Dow industrials erase bulk of intraday triple-digit decline

U.S. stocks were slightly lower Tuesday despite a comeback late in the previous session that hinted investors may be willing to buy stocks despite anxieties about tensions between the U.S. and Iran.

The Dow stands 0.6% off its record at 28,868.80, the S&P 500 is about 0.4% shy of its all-time peak at 3,257.85, while the Nasdaq sits just 0.2% from a record close of 9.092.19, all set on Jan. 2.What’s driving the market? Investors are trying to brush off rising tensions in the Middle East prompted by the killing of top Iranian Maj. Gen. Qassem Soleimani by the U.S. on Friday.

However, market participants are judging the developments as not yet sufficient to knock down a powerful stretch of gains for U.S. stocks that leaves the major indexes all less than 1% from records. In economic news, the U.S. Commerce Department said the trade deficit narrowed in November to a 3-year low. Factory orders fell 0.7% in November, the Commerce Department said, marking the third decline in four months. But a reading on the U.S. service sector rose to 55 in December from 53.9 the prior month, according to the Institute for Supply Management.

FireEye Inc. FEYE, +3.35% shares rose more than 3%, nearing their highest level in about 11 months, after an analyst upgrade. The analyst, with SunTrust Robinson Humphrey, raised his stock price target by nearly half. Gold prices GCG20, +0.19% on Tuesday were edging up less than 0.1% higher at $1,570.10 an ounce after closing out Monday at a seven-year high, according to FactSet data.

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Wall Street market analysts see deeper sell-off ahead: 'Ripe for a tactical correction'Geopolitical shocks have historically led to sharp pullbacks, with the S&P 500 declining 6% or even suffering a correction, analysts say. Just tactical ! Rigged the manipulators already took their profits and now gonna run Lol, there will be no sell off.
Source: CNBC - 🏆 12. / 72 Read more »