U.S. market indexes were lower on Tuesday as Fed uncertainty weighed on stock valuations. For the day the Dow Jones Industrial Average closed at 18552.02 for a loss of -84.03 points or -0.45 percent. The S&P 500 was also down, closing at 2178.15 for a loss of -12.00 points or -0.55 percent. The Nasdaq Composite closed lower at 5227.11 for a loss of -34.90 points or -0.66 percent. The VIX Volatility Index was higher for the day at 12.59 for a gain of 0.78 points or 6.60 percent.

Tuesday’s Market Movers

Economic factors affecting trading on Tuesday included the Consumer Price Index, Housing Starts, Industrial Production and a report on E-Commerce Retail Sales. The Consumer Price Index was unchanged from the previous month. On an annual basis the Consumer Price Index increased 0.8 percent. The Consumer Price Index Less Food and Energy increased 2.2 percent annually. Housing starts increased to a rate of 1.211 million SAAR. Industrial production was higher with a month over month gain of 0.7 percent. E-commerce sales, a key factor being watched this week, reported a gain. E-commerce sales were reported at 4.5 percent SAAR for the second quarter.

Fed uncertainty was a key factor for the market on Tuesday. As the economy continues to improve, investors are increasing the likelihood of a September rate hike. Wednesday’s Fed minutes will provide more insight into the Fed’s positioning. A rate hike in September could affect market trading in the next few weeks.

Stocks trading actively on Tuesday included the following:

Chesapeake Energy
Bank of America
Apple
AT&T
Activision Blizzard
Morgan Stanley
Cisco Systems
EMC

In the Dow Jones Industrial Average, the following stocks led losses for the day:

Losses (percent)
Johnson & Johnson         -1.61
Verizon Communications Inc       -1.60
Microsoft Corp  -1.20
The Travelers Companies Inc       -1.06
Pfizer Inc              -0.93
Coca-Cola Co      -0.92

In the broad market, utilities and healthcare led losses. Technology was also lower for the day with the following stocks leading losses:

Losses (percent)
Activision Blizzard Inc     -5.23
Incyte Corp         -3.35
Vertex Pharmaceuticals Inc          -2.42
Regeneron Pharmaceuticals Inc -2.18
Celgene Corp     -2.14
Electronic Arts Inc            -1.80
Broadcom Ltd    -1.79
Alexion Pharmaceuticals Inc        -1.70

In commodities, gold traded higher as evidenced by the SPDR Gold Trust which reported a gain of +0.63 points or 0.49 percent. The dollar was lower for the day as the U.S. Dollar Index was down -0.82 points or -0.86 percent at 94.78.

Small-Cap Stocks

In small-caps, the Russell 2000 Index was lower at 1231.13 for a loss of -10.73 points or -0.86 percent. The S&P 600 index was lower at 745.71 for a loss of -5.25 points or -0.70 percent. The Dow Jones Small-Cap Growth TSM Index was lower at 7524.77 for a loss of -67.91 points or -0.89 percent. The Dow Jones Small-Cap Value TSM Index closed at 8698.98 for a loss of -72.31 points or -0.82 percent.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1553.79 for a loss of -15.31 points or -0.98 percent; the S&P 100 Index closing at 964.56 for a loss of -4.26 points or -0.44 percent; the Russell 3000 Index closing at 1287.10 for a loss of -7.88 points or -0.61 percent; the Russell 1000 Index closing at 1206.41 for a loss of -7.13 points or -0.59 percent; and the Dow Jones U.S. Select Dividend Index closing at 616.67 for a loss of -4.43 points or -0.71 percent.