Stocks Fall as Chicago Business Index Drops to Almost Two-Year Low

Strategic Insights -

The US stock market declined on Tuesday, trimming May's gains for the S&P 500 and Dow Jones industrial average, as a drop in the Chicago Business Barometer suggested waning demand for commodities. Aluminum and steel producers such as Alcoa Inc. and Nucor Corp. fell, along with American International Group Inc., which reported a $3.9 billion profit reduction due to accounting corrections and increased asbestos reserves.

Key Takeaways:

  • The Chicago Business Barometer dropped to almost a two-year low, signaling potential waning demand for commodities.
  • Aluminum and steel producers Alcoa Inc. and Nucor Corp. declined 37 cents and 82 cents, respectively.
  • American International Group Inc. reduced its profit by $3.9 billion due to accounting corrections and increased asbestos reserves.
  • DreamWorks Animation SKG Inc. lost $2.95 after its latest film, "Madagascar," missed opening weekend box-office sales estimates.
  • Google Inc.'s stock rose $11.27 to $277.27, with a potential target of $300 in the next 12 months.

Statistics:

  • Alcoa Inc.'s stock price fell 37 cents to $27.10.
  • Nucor Corp.'s stock price fell 82 cents to $52.96.
  • American International Group Inc.'s stock price fell 85 cents, or 1.5%, to $55.55.
  • Google Inc.'s stock price rose $11.27 to $277.27.
  • The S&P 500 index climbed 3% in May.
  • The Dow Jones industrial average added 2.7% in May.
  • The Nasdaq composite index jumped 7.6% for its largest gain since October 2003.

Sources:

  • Bloomberg News
  • Alcoa Inc.
  • Nucor Corp.
  • American International Group Inc.
  • Institute for Supply Management
  • Standard & Poor's
  • Dow Jones industrial average
  • Nasdaq composite index
  • Piper Jaffray & Co.