By Yasin Ebrahim
Investing.com – The S&P 500 struggled for direction Tuesday as reopening stocks climbed on easing Covid-19 restrictions, but energy stocks fell sharply as oil prices retreated on fears of increased supply amid reports an Iran nuclear deal was imminent.
The Dow Jones Industrial Average fell 0.15%, or 51 points, the S&P 500 fell 0.05%, and Nasdaq Composite gained 0.53%
Consumer discretionary stocks were supported by renewed optimism on the reopening trade - bullish bets on stocks tied to the progress of the economic reopening – as Covid-19 restrictions continue to ease.
Casino and travel stocks were among the top gainers in the consumer discretionary sector, with MGM Resorts (NYSE:MGM), Carnival (NYSE:CCL) and Wynn Resorts (NASDAQ:WYNN) in the ascendency.
Tech rebounded modestly from weakness seen Monday, but ongoing concerns the rotation to value from growth still has room to go kept gains in check.
"While there are some minor technical indicators implying the value/growth ratio may be extended / overbought on a short-term basis, we see more room ahead for relative outperformance in value," Dan Wantrobski, associate director of research at Janney Montgomery Scott wrote in a note.
Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) were lower, while Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN) were little changed.
Apple also caught some unwanted attention. The New York Times reported Monday the tech giant had compromised on security by storing data of its Chinese consumers on computer services run by a Chinese-government controlled firm. The company denied claims in the report. "We never compromised the security of our users or their data in China or anywhere we operate."
Tesla (NASDAQ:TSLA) shrugged off reports that famous shorts-seller Michael Burry reportedly has initiated a $534 billion bet against the stock.
Energy was the biggest laggard as oil prices slumped on fears of a wave of Iranian supply amid reports that a nuclear deal will be sealed on Wednesday.
On the economic front, housing data that fell short of economists' forecast was largely shrugged off as home-building activity remains elevated.
"Winter storms caused a sharp pullback [in housing starts] in February and an even bigger bounce in March," Jefferies (NYSE:JEF) said. "The April pullback looks like a return to trend, which is still upward sloping."
President Joe Biden's fiscal agenda, meanwhile, was also back in the spotlight as Treasury Secretary Janet Yellen backed a reform of the corporate tax system to fund the president's infrastructure plan.