Major U.S. stock benchmarks gave up modest early gains to trade flat to slightly lower Tuesday, a day after the S&P 500 index and Nasdaq Composite closed at records, as investors sifted through a torrent of corporate earnings reports and prepared for results from technology heavyweights.
What are major benchmarks doing?
The Dow Jones Industrial Average
were off 11.27 points, or less than 0.1%, at 33,970.30.
The S&P 500
was off 4.14 points, or 0.1%, at 4,183.48.
The Nasdaq Composite
declined 52.51 points, or 0.4%, to 14,086.26.
On Monday, stocks ended mostly higher, with tech-related shares leading the move to the upside. The S&P 500 rose 0.2% and eclipsed its previous closing high from April 16 and the Nasdaq Composite jumped 0.9% to take it out its record finish from Feb. 12. The Dow stumbled, falling 0.2%.
What’s driving the market?
Corporate results for the first quarter were in the spotlight as one of the busiest weeks of the earnings reporting season got under way, with electric car maker Tesla Inc.
delivering its report late Monday afternoon. Tech results will be in the spotlight, with earnings for Microsoft Corp.
and Google parent Alphabet Inc.
due after the closing bell Tuesday.
With about a third of S&P 500 index companies reporting so far, about 80% have beaten forecasts, according to FactSet.
“The biggest threat to the positive trend in technology stocks is the reflation trade, which would boost demand for cyclical stocks and move capital from the tech stocks towards the value names,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
“But it looks like that migration from growth to value is happening without too much harm for the tech stocks for now, and some digital services, including the cloud business will unlikely be affected by the reflation theme as the end of the pandemic won’t reverse the migration of our data storage to the clouds,” she said, in a note.
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The Federal Reserve on Tuesday will kick off a two-day policy meeting at which Fed Chairman Jerome Powell is expected to maintain his stance that interest rates won’t begin to rise until inflation exceeds the Fed’s 2% target.
The Conference Board said its index of consumer confidence climbed to a 14-month high of 121.7 in April from a revised 109 in March.
Which companies are in focus?
- Tesla shares were down more than 4% after the Silicon Valley electric-car maker reported first-quarter profit above expectations, but saw sales miss the mark slightly.
Shares of Lyft Inc.
were up 2.1% after the ride-hailing company late Monday said it would sell its autonomous-vehicle division to a Toyota
subsidiary for $550 million in cash, calling the move a way to speed up the development of self-driving technology.
Shares of meme favorite GameStop Corp.
rose 6.8% after the videogame retailer announced after Monday’s closing bell that it had completed its “at-the-market” stock offering by selling 3.5 million additional shares for approximately $551 million.
Shares of drugmaker Eli Lilly & Co.
were down more than 2% after the company posted weaker-than-expected first-quarter earnings and provided guidance that was below consensus.
United Parcel Service Inc.
shares jumped nearly 12% after the package delivery giant reported first-quarter profit and revenue that were well above expectations.
Shares of Dow component 3M Co.
fell 2.6% after the conglomerate reported first-quarter earnings and revenue that beat forecasts and affirmed its full-year outlook.
General Electric Co.
shares declined 3.6% after the industrial conglomerate swung to a first-quarter loss, but reported adjusted profit that topped expectations while revenue fell short of expectations.
shares were up 1.5% after the toy maker reported earnings that topped forecasts, while revenues fell short.
Shares of Archer Daniels Midland Co.
shares were 3.8% higher after the food-processing company topped earnings and revenue expectations for its first quarter.
What are other markets doing?
The yield on the 10-year Treasury note
rose 1.6 basis points to 1.585%. Yields and bond prices move in opposite directions.
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, edged up 0.1%.
Oil futures remained higher as reports said OPEC+ would cancel a Wednesday meeting and stick with a timetable to ease production curbs, with the U.S. benchmark
up 0.7% at $62.37 a barrel. Gold futures
were flat trading at $1,780.10 an ounce.
In global equity trading, the Stoxx 600 Europe index
fell 0.3% and London’s FTSE 100 index
was off 0.2%. The Shanghai Composite
ended fractionally higher, while Hong Kong’s Hang Seng Index
fell slightly and Japan’s Nikkei 225