U.S. stock indexes fell Tuesday but extended their monthly win streak to four.
The Nasdaq sawed off 0.6% while the S&P 500 and the Dow Jones industrial average trimmed 0.2% and 0.1% respectively. The small cap Russell 2000 dropped 1.5%, according to preliminary data.
Volume in the stock market today rose on both major exchanges, which resulted in distribution for the Nasdaq and the S&P 500. Distribution involves a sizable loss in rising volume and is a sign of institutional selling.
Funds apparently decided that it was prudent to lighten up holdings before President Trump's speech to a joint session of Congress. The speech is scheduled to begin at 9 p.m. ET.
IBD'S TAKE: The long bull market has relied on ultra-easy Fed policy. But for how much longer? The odds of a mid-March rate hike doubled Tuesday as policymakers called a near-term move "compelling".
A 12-day win streak for the blue chip Dow Jones industrial average ended, but the monthly win streak for the Dow and the two major indexes increased to four up months in a row.
The Nasdaq tacked on 2.6% in November and then followed up with monthly gains of 1.1%, 4.3% and 3.7%, according to preliminary data.
Top gainers Tuesday had a defensive accent. Food and utility groups held seven of the top 10 spots among IBD's 197 industry groups. On the downside, retail accounted for five of the 10 worst performers for the day.
In the Nasdaq 100, Priceline Group (PCLN) delivered the best gain, up 6% in heavy volume. The company reported a 32% pop in Q4 earnings, the biggest in 11 quarters. Revenue rose 17%, near the high end of the past nine quarters.
Meanwhile, Charles Schwab (SCHW) was the day's biggest loser in the IBD 50. The brokerage stock dropped 3% in fast trade. Fidelity announced it was cutting its online commissions to $4.95 and Schwab matched that figure just hours later.
Banks, the leading sector in this uptrend, were running into moderate headwinds Tuesday. Most banks were either down or flat.
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