Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow Rallies as Traders Resume Bets on Reopening Despite Rising Global Cases

Published 04/21/2021, 01:27 PM
Updated 04/21/2021, 03:39 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – The Dow climbed Wednesday, clawing back some of its recent losses as investors resumed bets on reopening stocks and shrugged off a fresh wave of Covid-19 cases that threatens to slow the global recovery.

The Dow Jones Industrial Average rose 0.92%, or 311 points, the S&P 500 was up 0.86%, to move closer to its record high of 4,191.31, and the Nasdaq Composite was up 0.97%.

The reopening trade – bets on stocks set to move higher as the economy reopens were – is back on trading menu. Cruise line stocks led charge higher despite a new wave of Covid-19 infections sweeping across a number of countries including Japan and India that will likely delay the rebound in travel.

Norwegian Cruise Line (NYSE:NCLH) was up 9% after Goldman Sachs (NYSE:GS) lifted its rating on the stock to buy from neutral and talked up the cruise company's capacity growth and low debt levels relative to its peers.

Carnival (NYSE:CCL) and Royal Caribbean Cruises (NYSE:RCL) were up more than 5% and 4%, respectively. 

Quarterly earnings continued to pour in, some good, some bad, and some that spooked investors.

Netflix (NASDAQ:NFLX) fell more than 7% after the streaming giant's first-quarter earnings beat was overshadowed by subscriber growth that fell well short of Wall Street estimates. The streaming giant guided subscriber growth to increase by just 1 million for Q2, stoking investor fears over the impact of competition from Disney and other rivals.

"[W]e think that competition for new subscribers will limit Netflix’s ability to do so, as fickle subscribers from at or below median income households are likely to churn more frequently in the future and to rotate among the many new services offered," Wedbush's analyst Michael Pachter said in a note.

Verizon Communications ' Inc (NYSE:VZ) earnings beat in the first quarter was cast aside by larger-than-expected decline in postpaid subscribers as the trend of cable cutting continued.

The wireless carrier lost 178,000 postpaid wireless phone subscribers, compared with analyst estimates for a 40,000 decline.

CSX (NASDAQ:CSX) jumped 4% after the rail operator reported mixed quarterly results as revenue beat, but earnings missed Wall Street estimates.

Energy stocks also recovered from their recent malaise as oil prices moved off session lows as investors weighed up an unexpected climb in weekly U.S. inventories and the potential of more oil from Iran. The U.S. is reportedly considering easing some sanctions against Iran as an olive branch to smooth over nuclear talks. 

US crude oil stocks climbed by 0.6 million barrels in the week ended April 16, confounding economists' forecast for a 3.6 million barrel draw.

Big tech, excluding Google-parent Alphabet (NASDAQ:GOOGL), and Facebook (NASDAQ:FB), also recouped some losses.

Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) were in the green.

Latest comments

Ah yes, an uninhibited "rally" right to a closing high.  Don't see "gains" given up "in late trade," while every loss sees the market rise into the close.  It's a one-way street for the US Ponzi Scheme, greatest investment fraud in history, and biggest financial joke in the world, as another financial knife goes into the back of the US working class.
plainly wrong article. Growth stocks started to come back and pushed the market higher, due to global covid fears. it's a rotation OUT of value that's starting.
you guys who write the articles ever read the comments?
Biggest market manipulation of all times going on. 2000 and 2008 were nothing compared to this FED orchestrated bubble when it pops.
Traders? you spelled FED wrong
what a scam no volume in the markets. they just won't let them have even a natural correction. bunch of crooks.
scammers how can u hope on global recovery while global economy declines every month thanks to india & brazil
uf I know now lol
The insanity continues...but, for how long?
Investors Really? Please clarify what you mean by Investors.  Why does every news reporter, writers always write or say things that are pure garbage.  Did this reporter take a survey to get her opinion.  Does this reporter have a 6 sense?  So many things that affect the direction of the market, yet reporters always find excuses one excuse.
correct
the only investors are the institutions like Vanguard and BlackRock and they own everything including the fed.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.