Tuesday April 27th

27-04-2021

Stock futures are flat after S&P 500 closes at record, Tesla shares decline while UPS soars

U.S. stock index futures were flat on Tuesday as investors braced for a big batch of tech earnings. Futures on the Dow Jones Industrial Average were up 3 points. S&P 500 futures were flat. Nasdaq-100 futures were also flat. Shares of Tesla fell 3% in premarket trading even after the electric carmaker posted record net income of $438 million. Tesla also beat Wall Street’s earnings and revenue expectations handily, boosted by sales of bitcoin and regulatory credits. The shares have struggled this year, off by more than 18% from their record. Though the stock is still up 360% over the last 12 months. UPS shares soared 8% after earnings blew past Wall Street estimates.  The company said first quarter revenue was up 27%. The first-quarter earnings season kicks into high gear on Tuesday with key tech companies such as Alphabet, Microsoft and AMD reporting after the bell. So far, with about a third of the S&P 500 having reported numbers, 84% of companies have turned in a positive earnings surprise, according to FactSet. However, stock moves have been relatively muted following the strong results with the market standing at record levels with high valuations. GameStop’s stock jumped more than 8% in premarket trading after the video game retailer said it sold 3.5 million additional shares, raising $551 million to speed up the company’s e-commerce transformation. The S&P 500 edged higher to close at another record on Monday, while the tech-heavy Nasdaq Composite climbed 0.9% to hit its first fresh record close since Feb. 12. “Strong breadth measures suggest stocks still may have more upside,” said Jeff Buchbinder, equity strategist at LPL Financial. “While valuations are elevated, they still appear reasonable when factoring in interest rates and inflation.” The Federal Reserve kicks off its two-day policy meeting on Tuesday. The central bank is not expected to take any action, but economists expect it to defend its policy to let inflation run hot. The latest CNBC Fed Survey sees the central bank staying on hold and keeping its asset buying program in place at the same levels for the rest of 2021, despite growing concerns about an overheating economy. Apple and Facebook earnings follow on Wednesday after the bell. Shares in Asia-Pacific were mixed on Tuesday as concerns about the pandemic continued to linger. In Japan, the Nikkei 225 fell 0.46% to close at 28,991.89 while the Topix index declined by 0.76% to finish the trading day at 1,903.55. The broader Hang Seng index in Hong Kong slipped slightly to close at 28,941.54. Mainland Chinese stocks nudged higher on the day, with the Shanghai composite 0.04% higher at 3,442.61 while the Shenzhen component advanced 0.279% to 14,264.08. Oil prices rebounded on Tuesday after falling in the previous session, but gains are likely to be capped amid growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases. Brent crude was up 30 cents, or 0.44%, at $65.94 a barrel, after dropping 0.7% on Monday. U.S. oil gained 39 cents, or 0.6%, to $62.30, having declined by 0.4% the previous session. Gold prices were little changed on Tuesday ahead of the U.S. Federal Reserve’s meeting, while palladium prices hit a new record high on persistent supply worries. Spot gold was flat at $1,780.90 per ounce. U.S. gold futures were little changed at $1,781 per ounce.