Tuesday April 20th

20-04-2021

Dow futures fall 150 points as stocks are set to fall for a second day

U.S. stock index futures fell on Tuesday, pointing to a second day of losses for a stock market that had been climbing steadily to record after record. Dow Jones Industrial average futures fell 155 points, or 0.5%. S&P 500 futures lost 0.4%. Nasdaq 100 futures also shed 0.4%. Procter & Gamble shares rose slightly in premarket trading after the consumer giant reported quarterly earnings that beat expectations with pandemic home care trends lingering and beauty sales picking up. Johnson & Johnson shares remained flat in early trading following better-than-expected earnings and revenue. The company also reported $100 million in first-quarter sales of its Covid-19 vaccine that’s on hold in the U.S. while U.S. health regulators investigate a rare blood-clotting issue. Another Dow component Travelers Companies saw its shares rise more than 1% after quarterly results topped Wall Street’s estimates. The company also raised its quarterly cash dividend and approved an additional $5 billion of share buybacks. The major averages fell on Monday, dragged down by overall weakness in the technology sector. The Dow Jones Industrial Average lost more than 120 points, dragged down by a more than 1.5% drop in Intel’s stock. The S&P 500 dropped more than 0.5%. The Nasdaq Composite was the relative underperformer, dipping nearly 1% as Facebook, Amazon and Microsoft all closed lower. Tesla dipped more than 3% as bitcoin — which makes up some of Tesla’s balance sheet— tanked over the weekend after hitting an all-time high of $64,841 Wednesday morning, according to data from Coin Metrics. Tech stocks were weak again in premarket trading Tuesday with shares of Tesla and Nvidia lower. The small-cap benchmark Russell 2000 dropped 1.4% on Monday and was set for more losses Tuesday with futures on the index down 0.8%. The Dow and S&P 500 closed at records on Friday and the Dow crossed above the 34,000 level for the first time ever last week. The first-quarter earnings season got off to a strong start last week as the major U.S. banks reported. Financials earnings have topped expectations by 38%, while others in the S&P 500 have surprised to the upside by 12%, according to data from Credit Suisse. Streaming giant Netflix is slated to release numbers after the bell. Wall Street analysts expected Netflix to remain a winner in the streaming space even as the pandemic recovery improves. Shares in Asia-Pacific were mixed on Tuesday as China kept its benchmark lending rate unchanged. Stocks in Japan led losses among the region’s major markets, with the Nikkei 225 falling 1.97% to close at 29,100.38 while the Topix index shed 1.55% to end its trading day at 1,926.25. Mainland Chinese stocks also closed lower. The Shanghai composite shed 0.13% to 3,472.94 while the Shenzhen component declined 0.113% to 14,101.90. Hong Kong’s Hang Seng index was hovering around the flatline, as of its final hour of trading. Oil rose to $68 a barrel and hit its highest in a month on Tuesday, supported by disruption to Libyan exports and expectations of a drop in U.S. crude inventories, though rising coronavirus cases in Asia limited gains. Libya declared force majeure on exports from the port of Hariga and said it could extend the measure to other facilities, citing a budget dispute. Hariga is scheduled to load about 180,000 barrels per day (bpd) in April. Brent crude was up 20 cents, or 0.3%, at $67.25 a barrel after hitting its highest since March 18 at $68.08. U.S. West Texas Intermediate (WTI) crude gained 2 cents to trade at $63.40 per barrel. Gold prices edged lower on Tuesday, pulled down by a rise in U.S. Treasury yields, although a softer dollar capped losses and kept bullion near a seven-week peak scaled the previous session. Spot gold fell 0.2 % to $1,766.65 per ounce, after hitting $1,789.77 on Monday, its highest since Feb. 25. U.S. gold futures for June delivery fell 0.16 % to $1,767.70 per ounce.