Woozy Tuesday Markets, Fall from Previous Records
The S&P 500 closed little near its all-time high on Tuesday as investors braced for a big batch of tech earnings.
The Dow Jones Industrials climbed 3.36 points to end the session at 33,984.93
The S&P 500 dipped 0.9 points to 4,186.72, slightly below Monday’s record close.
The NASDAQ Composite lost 48.56 points to 14,090.22, after closing Monday’s record.
Tesla shares fell 4.5% even after the electric car maker posted a record net profit of $ 438 million. Tesla also exceeded revenue and revenue expectations on Wall Street, boosted by bitcoin sales and regulatory credits. Stocks have struggled this year, over 18% from their all-time high. Although the stock is still up 360% over the past 12 months.
UPS shares climbed more than 10% after profits beat Wall Street estimates. The company said first-quarter revenue was up 27%.
The first quarter earnings season picks up speed 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 releasing numbers, 84% of companies have registered a positive earnings surprise. However, stock movements have been relatively subdued following the good results, with the market hitting record highs with high valuations.
GameStop’s stock jumped more than 6% after the video game retailer announced it had sold an additional 3.5 million shares, raising $ 551 million to accelerate the company’s ecommerce transformation.
Apple and Facebook revenue will follow on Wednesday after the bell.
The Federal Reserve kicked off its two-day policy meeting on Tuesday. The central bank is not expected to take action, but economists expect it to defend its policy of letting inflation soar.
The latest surveys show the central bank remains on hold and maintains its asset purchase program at the same level for the remainder of 2021, despite growing concerns over the overheating economy.
On the data front, house prices in February were the largest increase in 15 years, increasing 12% year-on-year and 11.2% in January, according to the Home Price Index. S&P CoreLogic Case-Shiller housing.
Meanwhile, consumer confidence rose sharply to a pandemic high, with the Conference Board index rising to 121.7, the highest since February 2020.
10-year Treasury bill prices fell, taking yields to 1.63% from 1.57% on Monday. Treasury prices and yields move in opposite directions.
Oil prices gained $ 1.30 to US $ 63.21 per barrel.
The price of gold fell from $ 4.30 to US $ 1,775.80 per ounce.