BHP Stock – Stocks Are Sliding as Tech Shares Drag Down the Market
Stocks continued to shrug off strong earnings reports on Tuesday, as investors look ahead to Friday’s payrolls report. A rout in technology shares dragged down broader indexes.
Some 88% of S&P 500 companies have reported first-quarter results ahead of Wall Street estimates. Add that to a global vaccine rollout under way and an economy that continues to recover and there’s plenty for investors to be excited about. But with stock indexes at or near record highs and coming off a massive rally in the past year, there’s a lot of good news already priced in.
On the other hand, companies continue to mention higher input costs and supply chain bottlenecks, while investors monitor the Federal Reserve for any sign of a change in policy and the inflation debate rages on. April U.S. jobs numbers are due Friday, and will provide the latest datapoint about the economic rebound. The consensus estimate is for an increase of 975,000 nonfarm payrolls, which would follow a 916,000 gain in March.
But the so-called “whisper number” on Wall Street is well above a million jobs. The concern is that could put the release into good-news-is-bad-news territory, with the ahead-of-schedule recovery prompting the Fed to taper asset purchases sooner than markets are currently pricing in.
All of that’s keeping a lid on the market’s enthusiasm this week, and perhaps encouraging some profit-taking by investors.
The declines on Tuesday were most concentrated in growth-oriented areas of the market: technology shares fell 2.6%, while communication services and consumer discretionary both lost about 2%. More cyclical sectors like energy, industrials, financials, and materials were in the green.
Cboe Volatility Index
(VIX) was up about 13% on Tuesday, back above 20 points for the first time since March. Bond yields slipped as the prices of the securities rose on Tuesday, with the yield on the 10-year U.S. Treasury note down about 0.01 percentage point, to 1.59%.
In Asia on Tuesday, Hong Kong’s Hang Seng rose 0.7%. Tokyo’s Nikkei 225 and the Shanghai Composite were closed for holidays. The FTSE 100 in London was off 0.7%, while the CAC 40 in Paris fell 0.9% and Frankfurt’s DAX declined 2.5%.
(ticker: PFE) stock gave up an early rise to slip 0.2% after reporting a profit of 93 cents a share, beating forecasts for 77 cents a share, on sales of $14.6 billion, above expectations for $13.5 billion.
(CVS) gained 3.9% after reporting a profit of $2.04 a share, beating forecasts for $1.71, on sales of $69.1 billion, topping expectations for $68.39 billion.
(IT) stock soared more than 12% after reporting a profit of $2 a share, beating forecasts for $1.05 a share, on sales of $1.1 billion, above expectations for $1.05 billion.
United States Steel
(X) stock gained 5.2% after getting upgraded to Outperform from Underperform at Credit Suisse.
(NTNX) stock gained 1.4% after getting upgraded to Overweight from Neutral at JPMorgan.
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