U.S. stocks were suffering a second day of losses Tuesday, with investors wading into a deluge of corporate results as earnings reporting season moves into full swing.
What are major indexes doing?
The Dow Jones Industrial Average
fell 126.98 points, or 0.4%, to 33,950.65.
The S&P 500
was down 10.29 points, or 0.3%, at 4,152.97.
The Nasdaq Composite
shed 14.53 points, or 0.1%, to trade at 13,900.23.
On Monday, stocks suffered modest losses, with the Dow shedding 123.04 points, or 0.4%, while the S&P 500 fell 0.5% as both indexes pulled back from record finishes posted Friday. The Nasdaq Composite shed 1%.
What’s driving the market?
Earnings reports, which are off to a strong start for the quarter, will remain under scrutiny as investors gauge the strength of the economic recovery from COVID-19 pandemic, analysts said. Guidance from companies on the outlook for the year ahead may be even more important in determining market direction.
“Corporate outlooks may indicate whether the rally from last year’s low could continue,” said Charalambos Pissouros, senior market analyst at JFD Group, in a note.
“In our view, with most major central banks suggesting that any spikes in inflation this year are likely to prove to be temporary, and staying committed to keeping their monetary policies extra loose, we believe that even if the earnings disappoint somewhat, there is a decent chance for equities to rebound again and continue trending north,” he said.
A pickup in new COVID-19 cases even as the vaccine rollout continues was seen putting a damper on sentiment, analysts said. The U.S. has averaged 67,175 new cases a day in the past week, up 4% from the average two weeks ago. But the global new case tally almost hit a record of more than 750,000 on Sunday and Monday, according to the Washington Post, as India and Brazil remain hot spots.
Which companies are in focus?
was expected Tuesday to provide an annual update to high-end iPads, along with other new products, and introduce a paid subscription option within its podcast app when it holds an event in New York. Apple shares rose 0.1%.
Shares of International Business Machines Corp.
were up 2.8% after the tech giant topped Wall Street estimates with a surprise rise in revenue, snapping a four-quarter streak of sales declines.
United Airlines Holdings Inc.
lost more than $1.3 billion in the first three months of 2021, but executives said that an adjusted cash flow metric flipped to positive and promised that new international routes to countries that allow vaccinated travelers will help the airline recover from the devastation of the COVID-19 pandemic. Shares fell 2.7%.
Johnson & Johnson
onTuesday reported first-quarter profit and sales that topped expectations, citing strength in its pharmaceutical business and continued recovery in medical devices. Shares were off 0.8%.
Shares of Procter & Gamble Co.
were down 1.2% after the maker of consumer staples reported fiscal third-quarter earnings that beat estimates and said it would be raising prices on certain product categories.
Shares of Kansas City Southern
soared 14.7%, after The Wall Street Journal reported that Canadian National Railway Co.
was planning to make a buyout bid for the railroad operator of roughly $30 billion, which would top Canadian Pacific Railway Ltd.’s
previously agreed on buyout bid.
- Shares of Philip Morris International Inc. PM rose 0.1% after the cigarette seller reported first-quarter profit and revenue that beat expectations, as growth in heated tobacco units shipments helped offset declines in cigarette shipments.
What are other markets doing?
The yield on the 10-year Treasury note
rose 1.2 basis points to 1.604%.
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was up 0.1% at 91.157.
Oil futures edged higher, with the U.S. benchmark
up 0.3% at $63.63 a barrel.
edged lower, fall ing 0.2% to $1,767.70 an ounce.
In Europe, the Stoxx 600
fell 1.3%, while London’s FTSE 100
was down 1.2%.
In Asia, Hong Kong’s Hang Seng Index
rose 0.1%, while the Shanghai Composite
fell 0.1% and Japan’s Nikkei 225