Dow ends lower as weaker industry and new banking jitters bite By Investing.com

By Yasin Ebrahim

Investing.com — The Dow closed lower on Tuesday, as an industry slump and a swing in banks, amid new jitters that the banking turmoil is not over, only weighed on investor sentiment.

They were down 0.59% or 198 points, and they were down 0.5% and they were down 0.6%.

Regional banks including Zions Bancorporation (NASDAQ:), Bank of the First Republic (NYSE:) and Comerica (NYSE:) led the sell-off in the financial sector as JPMorgan’s CEO warned that the banking crisis was far from over and that the impact of the industry turmoil will likely reverberate for years to come.

The warning came just as data showed job postings fell more than expected last month, adding to concerns about the economy as members of the Federal Reserve continue to call for higher rates.

The latest, or JOLTs, report from the U.S. Labor Department, a measure of labor demand, showed job openings fell to about 9.9 million in February, beating expectations of 10.4 million.

Industrials, meanwhile, was also a big drag on the broader market, boosted by a decline in Caterpillar Inc. (NYSE:) and United Rentals, Inc. (NYSE:) after Baird underrated the stock.

Baird said both companies are likely to see a dent in construction activity as the banking turmoil at regional banks, which account for about 70% of commercial real estate lending, leads to reduced lending.

Boeing Co. (NYSE:), a key Dow component, fell nearly 1% after Northcoast Research downgraded the company from neutral to sales amid fears engine maker CFM International will be unable to supply enough engines to the aircraft maker, hurting growth.

Energy, meanwhile, gave up its gains from a day earlier as oil prices shifted as investor focus shifted to the impact of a slowing global economy on crude oil demand.

Marathon oil Corporation (NYSE:), Phillips 66 (NYSE:), and valero energy Corporation (NYSE:) were among the biggest losers, with the latter up more than 8%.

In other news, Virgin Orbit Holdings (NASDAQ:) fell 23% as the satellite launch company filed for Chapter 11 bankruptcy protection after recently announcing it would cut most of its workforce after failing to raise financing.