Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500, Dow slip as focus turns to tech earnings

Stock MarketsApr 20, 2021 10:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The front facade of the NYSE is seen in New York

By Shivani Kumaresan and Medha Singh

(Reuters) - The S&P 500 and the Dow slipped for a second straight day on Tuesday, with investors pinning their hopes on results from Netflix (NASDAQ:NFLX) and other major tech-related companies this week to help sustain an upbeat start to the earnings season.

Video-streaming service provider Netflix, which thrived during last year's lockdowns, will be the first to report quarterly numbers in the so called FAANG group. Its shares rose 1.3% in early trading, ahead of its results after the closing bell.

The broader NYSE FANG+TM index added about 0.05%.

International Business Machines (NYSE:IBM) Corp rose 3.9% after recording the biggest rise in quarterly sales in more than two years, boosted by its bets on cloud computing.

Chipmaker Intel Corp (NASDAQ:INTC) is slated to report results on Thursday.

"We are getting a little bit of weakness ... even though the earnings and economic data is good," said Ryan Detrick, senior market strategist at LPL Financial (NASDAQ:LPLA) in Charlotte, North Carolina.

"The underlying fundamentals are extremely strong and it wouldn't be overly concerning after the rally we have seen in the past 13 months for the market to catch its breath a little bit more in the face of strong earnings."

After blockbuster earnings from major U.S. banks last week, analysts expect first-quarter profit for overall S&P 500 firms to jump 30.9% from a year earlier, according to Refinitiv IBES data.

Richly valued technology stocks are back in demand as a pullback in longer-dated bond yields from 14-month highs has eased worries over higher borrowing costs.

Seven of the 11 major S&P sectors were lower. The healthcare index hit an all-time high while technology, utilities and real estate traded higher.

At 09:58 a.m. ET the Dow Jones Industrial Average fell 111.30 points, or 0.33%, to 33,966.33, the S&P 500 lost 6.10 points, or 0.15%, to 4,157.16 and the Nasdaq Composite gained 2.77 points, or 0.02%, to 13,917.54.

The S&P 500 and the Dow hit record highs last week, boosted by a string of robust economic data and expectations of a strong corporate earnings season.

Kansas City Southern (NYSE:KSU) jumped about 15% after Canadian National offered to buy the U.S. railroad operator for about $30 billion, trumping a rival bid by Canadian Pacific (NYSE:CP).

The surge in Kansas City shares helped drive a 1.8% gain in the Dow Jones Transports index.

Tobacco company Altria Group (NYSE:MO) tumbled about 7% after the Wall Street Journal reported that the Biden administration is considering a rule that would limit nicotine or ban menthol in cigarettes.

Johnson & Johnson (NYSE:JNJ) rose 1.2% after the drugmaker beat expectations for quarterly earnings and raised its dividend.

Nike Inc (NYSE:NKE) dropped about 2.5% after Citigroup (NYSE:C) lowered its rating on the company's shares to "neutral" from "buy".

Declining issues outnumbered advancers by a 1.7-to-1 ratio on the NYSE and on the Nasdaq.

The S&P 500 posted 45 new 52-week highs and no new lows while the Nasdaq recorded 40 new highs and 39 new lows.

S&P 500, Dow slip as focus turns to tech earnings
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email