Wall Street closes in the red, consolidates below record highs amid Persian Gulf crisis

• Nasdaq COMP, -0.03% dropped about 3 points, less than 0.1%, to close near 9,069.
• S&P 500 lost  9 points, 0.3%, closing near 3,237.
• DJIA, -0.42% ended around 120 points, 0.4%, lower at about 28,582.

US benchmarks on Tuesday were mostly lower by the close as investors preferred to stay on the sidelines than chase blue skies considering the risks associated with the crisis in the Persian Gulf. The headlines continued to roll on Tuesday, yet there have been no further threats of retaliation from Iran, only that the US is ready to strike back should there be retribution. 

The Dow Jones Industrial Average, DJIA, -0.42% ended around 120 points, 0.4%, lower at about 28,582, while the S&P 500 lost  9 points, 0.3%, closing near 3,237. The Nasdaq COMP, -0.03% dropped about 3 points, less than 0.1%, to close near 9,069.

In corporate news, shares of Boeing Inc. BA, jumped mid-morning on a rumor that Warren Buffett's Berkshire Hathaway might be scooping up the stock. 

US data

As for US data, the US Dec Non-Manufacturing ISM beat expectations at 55.0 (a high since Aug, versus forecast 54.5, prior 53.9), mostly due to strong business activity (57.2) despite new orders pulling back to 54.9 from a strong 57.1 in Nov and employment of 55.2 (55.5 in Nov).

US Nov factory orders fell -0.7%m/m (est. -0.8%m/m, prior +0.2%m/m) - broadly in line, as was the final update for volatile durable goods orders (non-defence/ex-air +0.2%m/m from initial +0.1%m/m). The US Nov trade deficit narrowed more than expected to –USD43.1bn (est. –USD43.7bn) - the smallest deficit since 2016, while the trade deficit with China notably narrowed to –USD25.6bn (smallest deficit since 2013).

DJIA levels