Tech stocks slide with new earnings reports coming into focus

Trader
Traders work at the New York Stock Exchange.

  • The Nasdaq Composite slipped from record-highs Tuesday.
  • The S&P 500 was close to a record and the Dow industrials advanced.
  • Tesla shares were under pressure and Microsoft was set to report after the bell.
  • See more stories on Insider’s business page.

Tech stocks pulled back Tuesday as investors prepared for the next round of quarterly earnings reports, leaving the US stock market fighting to stay close to record highs.

The Nasdaq Composite was slightly lower after closing at a record high on Monday and the S&P 500 was edged up after also closing at a new record high Monday. Parcel delivery company UPS was among the those that turned in stronger-than-expected results for its first quarter.

But from the tech front, Tesla shares dropped following the release of the electric car maker first-quarter earnings report. The shares came under pressure from the lack of annual vehicle-delivery guidance. Its financial results met expectations.

Here’s where US indexes stood at 4 p.m. on Tuesday:

Microsoft and Google’s parent Alphabet will be in focus after the bell Tuesday with quarterly results from the tech heavyweights.

Overall for earnings, Wall Street so far is seeing “pretty good growth year over year but that’s against an easy base to beat, so to speak,” Shawn Cruz, senior market strategist at TD Ameritrade, told Insider.

“What we’re hearing from some of these companies on the guidance front is that they’re actually not expecting margin growth, especially gross margin growth, to be very robust this year even though we’re expected to have a pretty strong recovery in the economy as a whole and I think that is really causing some concerns for investors,” he said.

Looking ahead to Wednesday, the Federal Reserve will conclude its meeting with a policy statement.

Around the markets, UBS took a $744 million hit from the collapse of Archegos in the first quarter.

HSBC posted a 79% jump in profit for the first quarter.

Gold fell 0.2% to $1,775 per ounce. Long-dated US treasury yields rose, with the 10-year yield at 1.622%.

Oil prices rose. West Texas Intermediate crude rose 2% to $63.22 per barrel. Brent crude, oil’s international benchmark, picked up 0.4% to $66.73 per barrel.

Bitcoin rose to $54,806.

Read the original article on Business Insider

Dow tumbles 257 points as spike in COVID-19 cases spurs economic-recovery concern

wall street new york stock exchange
Traders work on the floor of the New York Stock Exchange.

  • The S&P 500 and the Dow Jones Industrial Average suffered their second straight losses on Tuesday.
  • COVID-19 cases worldwide have risen by more than 10% over the past week.
  • Nike dropped on the Dow but IBM was a winner.
  • See more stories on Insider’s business page.

US stocks dropped Tuesday, with their grip on record highs further loosening as investors worry about the prospects for global economic growth as COVID-19 cases worldwide increase.

The S&P 500 and Dow Jones Industrial Average each fell for a second consecutive session, pulling back from last week’s strongest finishes on record.

As “stocks fall on back-to-back days for the first time this month, you can probably blame an old culprit: COVID,” said JJ Kinahan, chief market strategist at TD Ameritrade, in comments sent to Insider.

Here’s where US indexes stood at 4 p.m. on Tuesday:

Cumulative coronavirus cases worldwide have risen by more than 10% over the past week, according to data from Johns Hopkins University, and cases topped 142.3 million on Tuesday. Officials in Japan were considering declaring a virus state of emergency, and the UK imposed a travel ban for visitors from India as that country becomes the new epicenter of the outbreak behind the US. Argentina, meanwhile, is battling another wave of cases.

“Higher-than-expected earnings might not be packing as big a punch as normal, partly because analysts had been raising their earnings estimates before earnings season began,” Kinahan said. “At this point, it’s really more about what companies forecast and less about what happened in Q1.”

IBM shares rose and performed the best among the Dow industrials after the technology company’s first-quarter earnings and revenue beat Wall Street’s targets. But fellow Dow component Nike dropped sharply following a Citi downgrade to neutral from buy on concerns that recent boycotts in China will hurt sales at the athletic wear maker.

Apple shares were lower. The company at its virtual event on Tuesday unveiled, among other products, its AirTags tracking accessory.

Around the markets, Johnson & Johnson shares rose after the company planned to resume COVID-19 vaccine shipments to the European Union.

GameStop stake held by Alaska’s revenue department soared by more than 700% last quarter. Alaska also said its Tesla bet had grown to $85 million in 18 months.

Bitfarms, a Canadian bitcoin-mining company, is planning a new mining site in Argentina that it said would be its largest yet.

Gold rose 0.3%, to $1,776 per ounce. Long-dated US Treasury yields fell, with the 10-year yield down to 1.56%.

Oil prices rose. West Texas Intermediate crude lost 1.2% to $62.61 per barrel. Brent crude, oil’s international benchmark, fell 1%, to $66.51 per barrel.

Bitcoin rose to $56,524.

Read the original article on Business Insider

US stocks slump as global COVID-19 cases increase

worried trader
  • The S&P 500 and the Dow on Tuesday continued their slide from last week’s record highs.
  • Global COVID-19 cases are rising, and the US State Department is set to issue a travel advisory.
  • The VIX, Wall Street’s “fear gauge,” was advancing.
  • See more stories on Insider’s business page.

Stocks moved lower on Tuesday, edging further from their strongest levels on record over concerns about rising COVID-19 cases worldwide.

The S&P 500 and the Dow Jones industrial average were in the red for the second straight session after notching record closing highs at the end of last week.

But on the rise was the VIX, Wall Street’s so-called fear gauge. It climbed by the most in three weeks, indicating that investors expect increased volatility over the next 30 days. A recent survey by Allianz found that many Americans want to stay on the sidelines of the stock market this year, worried that volatility will accelerate and hurt their investments.

Here’s where US indexes stood at 9:30 a.m. ET on Tuesday:

The S&P 500’s consumer-discretionary sector was losing the most ground, with airline stocks down after the US State Department said on Monday that it planned to issue a “Level 4: Do Not Travel” advisory for nearly 80% of countries as the coronavirus continues to spread. Shares of United Airlines were lower after the carrier indicated that quarterly losses would continue until air travel recovers to 65% of 2019 levels.

Officials in Japan are weighing a virus state of emergency, and the UK imposed a travel ban for visitors from India because of high case counts there. Argentina is battling another wave of cases.

Elsewhere, Apple will be in focus as it hosts a “Spring Loaded” virtual event at 1 p.m. ET during which it is expected to introduce two iPad Pro models.

Around the markets, a GameStop stake held by Alaska’s revenue department soared by more than 700% last quarter. Alaska also said its Tesla bet had grown to $85 million in 18 months.

Bitfarms, a Canadian bitcoin-mining company, is planning a new mining site in Argentina that it said would be its largest yet.

Gold fell 0.1%, to $1,767 per ounce. Long-dated US Treasury yields rose, with the 10-year yield at 1.61%.

Oil prices rose. West Texas Intermediate crude gained 0.4%, to $63.60 per barrel. Brent crude, oil’s international benchmark, gained 0.8%, to $67.57 per barrel.

Bitcoin rose to $56,079.

Read the original article on Business Insider

US stocks trade mixed as investors digest March inflation surge and J&J vaccine pause

Stock Market Traders
  • US shares traded mixed on Tuesday as consumer prices surged in March.
  • Consumer prices rose 0.6% in March fueled by an economy rebounding from the pandemic recession.
  • Traders nervously eyed calls to halt use of Johnson & Johnson’s vaccine following reports of blood clots in six recipients.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell

US shares trade mixed on Tuesday as consumer prices surged in March and officials called for a halt in the administration of Johnson & Johnson vaccines.

Consumer prices rose 0.6% in March from February, the Labor Department reported Tuesday, fueled by an economy rebounding from the pandemic recession.

It shot up 2.6% from the same period a year ago – roughly in line with the 2.5% expectation from economists polled by Reuters – when large swathes of the country were in lockdown to curb the spread of the virus

The year-over-year climb is the highest since August 2018. It is also higher than the 1.7% recorded in February.

Among the biggest contributors were gasoline prices, which surged 9.1% in March, and food.

Consumer inflation data aim to capture the cost of buying goods and services, which the Federal Reserve and financial markets watch closely.

Bond yields meanwhile have temporarily risen on expectations of higher growth and inflation. This, in turn, has weighed on technology shares, which look relatively less attractive when yields rise.

The 10-year US Treasury note rose higher Tuesday by 1.5 basis points to 1.691% from the 1.675% at the end of Monday. Yields move inversely to prices.

On Monday, all three major indexes ended lower as investors took a breather from Friday’s record highs.

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday:

Johnson & Johnson shares fell by as much as 3.5% after the US Food and Drug Administration and the Centers for Disease Control and Prevention jointly recommended a pause in its Covid-19 vaccine over blood clot reports in some people who had received the shot. It remains unclear if this will impede President Joe Biden’s goal of administering 200 million vaccines in his first 100 days.

GameStop could see its rally fade because of strong digital competition from Microsoft and Sony, Ascendiant Capital analyst Edward Woo said. Woo pointed to GameStop’s low market share in digital game sales and expects the company’s long-term share price to drop sharply.

“Due to the popularity of GameStop on Reddit chat boards and with Robinhood retail investors, GameStop shares appears to no longer trade on traditional fundamental valuations or metrics, but on retail investors’ sentiment, hope, momentum, and the powers of crowds,” he wrote.

Bitcoin breaks its record for the second straight day, soaring to an all-time high above $63,000 amid excitement ahead of Coinbase’s direct listing on the Nasdaq. The world’s most famous cryptocurrency rose as much as 5.3% to hit $63,179 on Tuesday, well above the last all-time high of just over $61,700 seen in March.

Oil prices edged higher after strong Chinese import data, Reuters reported, shrugging off tensions in the Middle East, which thus far have not affected oil supply. West Texas Intermediate crude climbed 0.92%, to $60.251 per barrel. Brent crude, oil’s international benchmark, rose 1.01% to $63.92 a barrel.

Gold slipped 0.24%, to $1,739.81 per ounce, as the treasury yields weighed on the precious metal’s appeal.

Read the original article on Business Insider

US stocks decline as investors digest volatility from Archegos meltdown

NYSE Trader
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020.

US stocks ended lower on Tuesday, with the the Dow Jones Industrial Average and S&P 500 retreating from record highs reached the previous day.

New trades linked to Archegos added unease to markets after US data highlighted an economic rebound.

Companies linked to the Archegos Capital Management meltdown last week were struck by a new wave of volatility after Credit Suisse initiated a block trade worth around $2.3 billion in an attempt to limit further losses.

Stocks including ViacomCBS, Discovery, and Tencent all whipsawed, and were down in premarket trading before recovering throughout the day.

The S&P 500 and Dow hit record highs Monday in the wake of a better-than-expected jobs report and record-high expansion in the services sector last month. Optimism around the economic recovery continues to drive markets.

Here’s where US indexes stood after the 4:00 p.m. ET close on Tuesday:

High valuations and other factors have been driving comparisons between current US stock market conditions and those during the dot-com era, but fundamentals are healthier now, said Charles Schwab’s chief investment strategist Liz Ann Sonders. Meanwhile, Nouriel Roubini, an economist known as “Dr. Doom” for his pessimistic market views, said markets are “extremely frothy” and participants are taking “too much risk” in an interview Tuesday.

Gold rose to 0.8% to $1,742.80 per ounce.

West Texas Intermediate crude rise by 1.24%, to $59.37 per barrel. Brent crude, oil’s international benchmark, was down 1% to $62.74 per barrel.

Read the original article on Business Insider

S&P 500 punches above 4,000 for first time as Biden targets $2 trillion for infrastructure spending

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 31, 2017. REUTERS/Brendan McDermid
Traders work on the floor of the NYSE in New York.

  • The S&P 500 closed above 4,000 for the first time after President Biden outlined a $2 trillion infrastructure spending proposal.
  • The Dow Jones Industrial Average started the second quarter by rising for the first time in two sessions.
  • Biden will likely hit resistance to his proposal of raising the corporate tax rate to 28%.
  • See more stories on Insider’s business page.

The S&P 500 notched a milestone as US stocks rose Thursday, carried higher following plans by President Joe Biden to seek $2 trillion to upgrade infrastructure in the world’s largest economy.

The S&P 500 climbed and ended above the 4,000 mark for the first time, a strong start to trading in the second quarter and in April, a month that’s typically been a winner for the benchmark index. Meanwhile, the Dow Jones Industrial Average gained for the first time in two sessions.

Here’s where US indexes stood at the 4 p.m. ET close on Thursday:

The moves came after Biden late Wednesday outlined an eight-year plan to embark on investments in transportation systems, including shifts toward electric vehicles, as well as in road, bridges and broadband. Tracking infrastructure plays, the Global X US Infrastructure Development ETF and the iShares Global Infrastructure ETF each picked up 0.6%.

Biden’s plan will also include an accompanying tax hike for corporations, to 28% from 21%.

“We expect the project to be passed along party-line votes, probably in October. While many members of the Republican Party support infrastructure improvements, the tax hikes will prompt criticism that they will hurt US competitiveness and raise the cost of industrial production,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note.

Elsewhere in the markets Thursday, AMC shares fell after the movie-theater chain’s CEO discussed the company’s potential issuance of 500 million shares.

BlackRock has made $360,000 on bitcoin futures since January, according to a regulatory filing.

Uber shares could rise as much as 65% with profitability ‘around the corner,’ Jefferies says.

Micron Technology shares moved higher after the memory and data-storage maker beat quarterly financial expectations and offered a positive outlook for its fiscal second-quarter.

Gold rose 1.2% to $1,728 per ounce. Long-dated US Treasury yields eased, with the 30-year yield down 9 basis points to 2.34%, and the benchmark 10-year yield lower by 7 basis points to 1.679%.

Oil prices rose after OPEC and its allies reportedly agreed to start raising output in May as they expect demand to increase. Brent crude, oil’s international benchmark, rose 1.6% to $64.61 per barrel. West Texas Intermediate crude gained 3.6% to $61.27 per barrel.

Bitcoin rose 0.3 % to $58,904.77.

Read the original article on Business Insider

S&P 500 tops 4,000 as Wall Street cheers Biden’s $2 trillion infrastructure plan

Traders work on the floor of the New York Stock exchange
Traders work on the floor of the New York Stock exchange

  • The S&P 500 topped the 4,000 mark for the first time as second-quarter trading kicked off.
  • Stocks rose after President Joe Biden outlined his $2 trillion multi-year infrastructure plan.
  • The 10-year Treasury yield edged lower after weekly jobless claims rose by more than expected.
  • See more stories on Insider’s business page.

US blue-chip stocks hit record highs on Thursday, starting off the second quarter with a bang, after President Joe Biden’s plans to spend $2 trillion to upgrade and modernize US infrastructure ignited investor risk appetite, boosting equities and commodities.

The S&P 500 pushed past the 4,000 level for the first time, getting off to a strong start for April, a month that typically has been one of the strongest in the year for the benchmark index.

Here’s where US indexes stood at 09:57 a.m. on Thursday:

Tesla shares were among so-called green stocks that rose after Biden late Wednesday outlined an eight-year plan for investments in transportation systems, including shifts toward electric vehicles, as well as spending on broadband and roads. He’s also aiming for investment in other areas such as child care.

Biden’s plan will also include an accompanying tax hike for corporations, something which could temper some of the enthusiasm on Wall Street, analysts said.

“The larger impact to markets will be whether or not the corporate tax rate is raised to 28% — or somewhere in between there and the current 21% level — and whether or not a global minimum tax on corporations can be established,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in a note.

“It’s likely that the stock market can withstand a hike in the corporate tax rate to 25%, but unclear how much room there is above that if stocks are going to keep moving higher between now and year-end,” he said.

Meanwhile, the 10-year Treasury yield fell below 1.7%, as bond prices rose following the release of US jobless claims data that cast some doubt on the robustness of the labor market. Claims totaled 719,000 last week, higher than the median estimate of 678,000 from economists surveyed by Bloomberg. The reading also marked the second increase in three weeks.

Elsewhere, US-listed shares of Nio and Xpeng jumped after the China-based electric vehicle manufacturers reported strong first-quarter delivery figures.

Gold rose 0.7% to $1,727.15 per ounce. Long-dated US Treasury yields eased, with the 30-year yield falling 6 basis points to 2.368%, while the benchmark 10-year yield also fell 6 basis points to 1.697%, still close to its highest since the onset of the pandemic last year.

Oil prices rose as OPEC and its allies met to discuss their production strategy. Brent crude futures, the global benchmark, gained 1.7% to $63.80 a barrel, while West Texas Intermediate crude traded up 2.1% at $60.41 a barrel.

Bitcoin was last up 0.7% on the day at $58,961.

Read the original article on Business Insider

US stocks edge higher as traders mull impact of Biden’s infrastructure plan

trader Gregory Rowe

US stocks edged higher on Wednesday investors brace themselves ahead of President Joe Biden’s unveiling of a multi-trillion dollar spending plan.

The bill will include major investments into a range of sectors, and investors are absorbing its potential impact on both inflation and earnings as a large part is to be funded with tax hikes on corporations. The bill is part one of two in Biden’s overall infrastructure plan, with the second to be announced in mid-April.

Rising Treasury yields, meanwhile, continue to put pressure on stocks, especially high-growth tech names that soared during the year of the pandemic. The benchmark 10-year US Treasury yield rose to its highest in 14 months on Tuesday, as investors priced in expectations of higher inflation and a stronger US economy.

The US private sector added 517,000 jobs in March, according to ADP’s monthly employment report Wednesday. Economists surveyed by Bloomberg held a median estimate of 550,000 payroll additions. This climb is the third straight monthly gain since payrolls shrank in December. The March gains are also the largest seen since October.

Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:

Stocks affected by the Archegos-linked selloff that roiled markets rallied. ViacomCBS and Discovery were both higher, as well as American depositary receipts of Chinese companies.

Bitcoin edged lower by 1.50% to $58,159.09.

Goldman Sachs on Wednesday said it could begin to offer bitcoin and other digital-asset-related investments to its private wealth-management clients, CNBC first reported.

Ethereum developers defended a decision to destroy ether tokens and cut the fees paid to miners ahead of major changes this summer. The developers said the changes could boost the cryptocurrency’s price.

West Texas Intermediate crude climbed as much as 0.12%, to $60.48 per barrel. Brent crude, oil’s international benchmark, also rose by 0.42%, to $63.87per barrel. Both benchmarks are on track for weekly losses.

Gold slipped 1.47% to $1,687.47 per ounce. The precious metal slipped below $1,700 on Tuesday for the first time in three weeks, under pressure as long-dated Treasury yields and the US dollar both rise.

Read the original article on Business Insider

Dow drops 308 points as rising COVID-19 cases cloud economic-recovery optimism

Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City
Traders work on the floor of the New York Stock Exchange.

  • The S&P 500 and the Dow Jones Industrial Average mark their third declines in four sessions.
  • European COVID-19 cases are rising and spurring more lockdowns in the region.
  • US economic recovery continues but is ‘far from complete,’ says Fed Chairman Powell.
  • See more stories on Insider’s business page.

US stocks dropped Tuesday as a rise in COVID-19 cases in Europe stoked concerns about the path for recovery in the global economy from the pandemic.

All three of Wall Street’s major indexes fell, with losses picking up pace in afternoon dealings. The S&P 500 and the Dow industrials declined for the third time in four sessions. Tech stocks as tracked on the Nasdaq Composite lost grip of earlier gains.

Stocks struggled in the face of rising coronavirus cases in Europe. The higher case counts have prompted Germany, Europe’s largest economy, to order lockdown measures over Easter and France has enacted more restrictions in the country.

Here’s where US indexes stood at the 4 p.m. ET close on Tuesday:

Meanwhile, Italy has issued new lockdowns. In the UK, the government in an effort to control cases is seeking to impose a £5,000 fine ($7,000) on people traveling outside of England without a valid reason. The worsening conditions in Europe pressured the demand outlook for oil, sending Brent oil prices sharply lower.

The US economy is seeing a lower amount of COVID-19 cases compared with Europe, alongside encouraging data and an improved rate of vaccinations, said Federal Reserve Chair Jerome Powell on Tuesday.

“But the recovery is far from complete,” he cautioned in remarks prepared for testimony to the House Financial Services Committee. The Fed “will continue to provide the economy the support that it needs for as long as it takes.”

AstraZeneca shares fell after US health officials raised questions about the drugmaker’s COVID-19 vaccine, saying the company could have used some outdated trial data in its update about the formula.

GameStop fell before the video game retailer late Tuesday releases its first quarterly financial report since its Reddit-fueled rally in January. Meanwhile, Melvin Capital, the hedge fund at the heart of the GameStop frenzy, is facing nine lawsuits from retail investors who alleged a conspiracy to limit trading caused them to lose money.

While stocks have pulled back in recent session, the market’s fear gauge, the Cboe VIX Volatility Index, is back at pre-pandemic lows, and it’s signaling big upside ahead, says Fundstrat’s Tom Lee.

Anthony Scaramucci’s SkyBridge Capital and investment firm First Trust Advisors have applied for regulatory approval for a bitcoin exchange-traded fund.

Oil prices tumbled, with West Texas Intermediate crude down 6% to $57.60 per barrel. Brent, oil’s international benchmark, was down 6.5% to $60.47.

Gold fell 0.6% to $1,727 per ounce as US treasury yields eased.

Bitcoin lost 2.5%, to trade at $55,328.

Read the original article on Business Insider

Dow, S&P 500 close at records after Fed upgrades its growth outlook and indicates no rates hikes until 2023

Barclays Traders NYSE
  • The Dow and the S&P 500 closed at new records after the Federal Reserve reiterated an accommodative policy stance as the economy recovers.
  • It’s “not yet” time for the Fed to start talking about reducing asset purchases, says Fed Chairman Powell.
  • The 10-year yield eased back from its highest level in 14 months.
  • See more stories on Insider’s business page.

US stocks turned higher Wednesday, with the Dow Jones industrial average and the S&P 500 closing at new record highs. Tech stocks recovered after the Federal Reserve reiterated its pledge to continue supporting the US economy as it continues to recover from the COVID-19 pandemic.

The Nasdaq Composite reversed course after losing more than 1% during the session and the S&P 500 clawed out of negative territory during afternoon trading. The run higher in stocks during the session came after Fed Chairman Jerome Powell said it was “not yet” time to begin discussions about tapering its purchases of bonds and other securities.

“We want to see that labor market conditions have made substantial progress toward maximum employment and inflation has made substantial progress toward the 2% goal,” Powell said in an afternoon press conference. “When we see actual data coming in that suggests that we’re on track…then we’ll say so,” and “well in advance of any decision to actually taper.”

The Fed at its policy meeting ended Wednesday left its benchmark interest rate unchanged, as expected. The Fed currently buys $120 billion a month in assets in part to help keep the financial system running smoothly as the worldwide pandemic persists.

Here’s where US indexes stood at 4 p.m. ET at the close on Wednesday:

Investors had earlier shoved down high-performing tech stocks as borrowing costs increased as implied by the 10-year Treasury yield. The yield approached 1.7% and reached its highest level since January 2020, which was before the COVID-19 outbreak was declared a pandemic.

The Fed upgraded its economic projections including its view that gross domestic product will expand by 6.5% this year, up from the prior estimate of 4.2%. Economists have said the vaccinations of millions of Americans and the $1.9 billion fiscal stimulus package from Washington are key factors in driving economic recovery. The Fed also indicated that no rate hikes will take place before 2023.

In equities, Uber fell over 4% after the company said late Tuesday it will reclassify drivers in the United Kingdom as “workers,” guaranteeing them minimum wage, paid vacation and other benefits.

Plug Power shares tumbled as much as 23% after the hydrogen fuel-cell company said it will restate some of its financial reports because of accounting errors.

Legendary investor Bill Gross said he’s betting against GameStop stock again after walking away from January’s wild volatility with $10 million.

Meanwhile, short bets on the stock market may be bottoming out as indexes hit record highs, according to data from S&P Global Market Intelligence.

Gold rose 1.09% to $1,751.05 per ounce. Long-dated US treasury yields rose.

Oil prices fell. West Texas Intermediate crude slipped 0.46% to $64.64 per barrel. Brent crude, oil’s international benchmark, dropped 0.55%, to $68.06 per barrel.

Bitcoin rose as much as 4.4% to $58,184.

Read the original article on Business Insider