U.S. equity markets were mixed Tuesday after the U.S. Food and Drug Administration recommended Johnson & Johnson’s COVID-19 vaccine be paused amid blood-clotting concerns and consumer prices rose at the fastest pace in over eight years.
|I:DJI||DOW JONES AVERAGES||33612.59||-132.81||-0.39%|
|JNJ||JOHNSON & JOHNSON||157.42||-4.63||-2.86%|
The Dow Jones Industrial Average fell nearly 200 points or 0.56% as J&J fell on the developments.
“We are recommending a pause in the use of this vaccine out of an abundance of caution,” the FDA tweeted.
The recommendation comes after a rare and severe blood clot was discovered in six recipients. More than 6.8 million doses of the vaccine have been administered.
The S&P 500 was little changed and the Nasdaq Composite rose 0.7% with other vaccine makers including Moderna and Pfizer’s partner Biontex rose.
Travel stocks, including American Airlines Group Inc., Carnival Corp. and Marriott International Inc. were under amid concerns a pause in the administration of Johnson & Johnson’s single-shot vaccine would stunt the reopening of the economy.
|AAL||AMERICAN AIRLINES GROUP, INC.||22.09||-0.82||-3.58%|
|MAR||MARRIOTT INTERNATIONAL, INC.||147.43||-1.92||-1.29%|
As traders sold reopening names, they put money to work in stay-at-home plays like Peloton Interactive Inc. and Zoom Video Communications Inc.
|PTON||PELOTON INTERACTIVE, INC.||123.65||+4.68||+3.93%|
In earnings, construction equipment maker Fastenal Co. reported profit and sales that missed Wall Street estimates.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. will report their quarterly results ahead of Wednesday’s opening bell.
|GS||THE GOLDMAN SACHS GROUP, INC.||328.90||-2.98||-0.90%|
|WFC||WELLS FARGO & CO.||40.06||-0.70||-1.73%|
|JPM||JPMORGAN CHASE & CO.||154.28||-1.74||-1.11%|
Economic data out Tuesday showed consumer prices rose 0.6% month over month in March, making for the fastest increase since August 2012. Prices increased 2.6% annually. The readings were hotter than the 0.5% and 2.5% increases that economists were expecting.
In commodities, West Texas Intermediate crude oil climbed 78 cents to $60.48 per barrel and gold rallied $9.60 to $1,742.30 an ounce.
Overseas markets were mixed.
Europe markets were little changed with France’s CAC 40 up 0.31%, Germany’s DAX gaining 0.26% and Britain’s FTSE 100 slipping 0.04%.
In Asia, Japan’s Nikkei 225 rose 0.72%, Hong Kong’s Hang Seng advanced 0.15% and China’s Shanghai Composite index lost 0.48%.