Dow drops more than 400 points as stock market fails to expand on Monday bounces ahead of megacap tech earnings
U.S. stocks fell sharply on Tuesday, failing to capitalize on the intraday rebound from the previous session, as investors sifted through a series of corporate results and awaited earnings due after the bell from megacap tech giants , including Microsoft and Google owner Alphabet.
What is happening
The Dow Jones Industrial Average DJIA
was down 414 points, or 1.2%, to 33,636.
The S&P 500 SPX
was down 69 points, or 1.6%, at 4,227.
The Nasdaq Composite COMP
fell 362 points, or 2.8%, to trade at 12,643.
Monday saw the biggest intraday reversal since February for the Dow, which rose 238 points, or 0.7%, erasing a loss of nearly 500 points. The S&P 500 rose 0.6% and the Nasdaq Composite gained 1.3%.
Read also : US stocks ended a manic Monday in the green – but intraday rallies like this aren’t bullish
What drives the markets?
Investors waded into the busiest week of the US corporate earnings season, analyzing results from a number of heavyweights released before the opening bell, while anticipating results from megacap tech players Microsoft Corp. . MSFT
and Google parent Alphabet Inc. GOOG.
“This week there will be a lot of attention on megacap earnings announcements. Netflix’s announcement turned out to be a big speed bump that the market is still trying to overcome and hopefully there will be some power for us help, created by FAANG stock announcements and forecasts remaining this week,” said Brian Overby, senior options analyst at Ally Bank, in emailed comments.
Formerly top flight Netflix NFLX
the shares have fallen more than 40% since announcing last week that it had lost 200,000 subscribers in the first quarter.
While nearly 80% of companies that have so far released reports for the quarter have exceeded their earnings expectations, including GE, United Parcel Service Inc. and Pepsico Inc, disappointing earnings forecasts, including those of JetBlue Airways Corp., weigh on the shares.
In U.S. economic data, durable goods orders at U.S. factories rose 0.8% in March and business investment rebounded from the first decline in a year, signaling that the economy continues to grow at a steady pace. supported. The rise in durable goods orders was consistent with consensus expectations produced by a survey of economists from The Wall Street Journal.
A survey of consumer confidence fell in April to 107.3 from 107.6, but Americans indicated they were optimistic enough about the economy to continue buying big-ticket items such as new cars and household appliances.
The S&P CoreLogic Case-Shiller home price index for 20 cities posted a 20.2% year-over-year gain in February, up sharply from 18.9% the previous month, but US new home sales fell 8.6% to an annual rate of 763,000 in March, the government said Tuesday.
Companies in the spotlight
Twitter Inc. TWTR
Shares fell 3.1% to nearly $50.11 after its board on Monday agreed to accept Tesla chief Elon Musk’s $54.20 per share offer for the platform. -form of social media.
3M Co. MMM
Shares fell 2.1% after the maker of post-it notes and industrial equipment posted better-than-expected first-quarter earnings.
PepsiCo Inc. PEP Stock
rose 0.4% after posting earnings and revenue that beat Wall Street forecasts.
United Parcel Service Inc.UPS
Shares fell 3.6% after the parcel delivery giant reported first-quarter earnings and revenue that beat expectations.
General Electric Co. GE
Shares fell 10.2% after the industrial conglomerate reported first-quarter adjusted earnings and revenue that beat expectations but missed free cash flow and provided a somewhat optimistic outlook.
Shares of JetBlue Airways Corp. JBLU
fell 8% after the airline reported a lower-than-expected loss and revenue that more than doubled to match forecasts, but said it planned to further reduce capacity growth to help restore operational reliability. United Airlines Holdings Inc. UAL
said on Tuesday it was launching the biggest transatlantic expansion in its history with 30 new or resumed flights between mid-April and early June. The shares fell 2.1%.
What other assets are doing
The yield on the 10-year Treasury note BX:TMUBMUSD10Y
fell 9.7 basis points to 2.732%. Yields and debt prices move in opposite directions.
The ICE US Dollar Index DXY,
a measure of the currency against a basket of six major rivals, rose 0.3%.
fell 2.5% to trade below $39,500.
Oil futures rose, with US benchmark CL
up 1.8% to return above the $100 per barrel threshold. GC00 Gold Futures
rose 0.6% to trade near $1,908 an ounce.
The Stoxx Europe 600 XX:SXXP
fell 0.4%, while London’s FTSE 100 UK:UKX
The Shanghai Composite CN:SHCOMP
fell 1.4%, while the Hang Seng HK:HSI index
rose 0.3% in Hong Kong and Japan Nikkei 225 JP:NIK