The iShares U.S. Aerospace & Defense ETF (ITA) hit an all-time high during Tuesday’s session, marking a significant milestone for the fund since its inception in 2006. The ETF rose 0.3%, with AeroVironment and V2X leading the way with impressive gains. AeroVironment surged nearly 25% on the back of strong earnings and guidance, while V2X was up more than 10%. Overall, the ETF has seen a little over a 2% increase since the start of the year.
In other news, Bitcoin reached a record high above $69,000, breaking a previous record set in 2021. The cryptocurrency hit a high around $69,210 and was last up about 1% at $68,307. This surge comes amid excitement around bitcoin ETFs and the upcoming halving event.
Meanwhile, the ISM services index reported a decline in activity for February, with a sharp drop in the prices measure. The index nudged lower to 52.6, slightly below expectations, indicating a slowdown in expansion. The prices index fell sharply to 58.6, showing a decline in expected price increases. Other indicators like new export orders, imports employment, and inventory sentiment also posted declines, while new orders and business activity rose.
UBS provided a positive outlook on investor euphoria, stating that it is not as bad as the dot-com bubble. The firm sees reasons to stay positive on future market performance, even as major indexes sit near record highs.
Overall, the market opened lower on Tuesday, with the Dow down 0.3%, the S&P 500 slipping 0.4%, and the Nasdaq Composite shedding 0.8%. Despite the overall downbeat day for stocks, utilities stood out as the outperformer among the 11 sectors of the S&P 500, up 1.64%.
In the world of retail, JPMorgan analyst Matthew Boss sees better times ahead for some “best in class” retail brands. He highlighted the potential for off-price retailers like TJX Cos, Burlington, and Ross Stores to thrive as consumers seek value and convenience.
In the automotive sector, Tata Motors announced a split of its commercial and passenger vehicle arms, leading to a more than 7% increase in its shares. The demerger is expected to be completed in 12 to 15 months, subject to approvals.
In the tech sector, Apple shares slid after reports of weak iPhone sales in China, while AMD fell after a regulatory snag on a chip intended for sale in China.
Overall, the market continues to see fluctuations and new developments across various sectors, providing opportunities for investors to navigate and capitalize on the changing landscape.
