US stocks fell sharply on Tuesday, failing to build on the rebound in the previous session as investors reviewed a number of corporate results and expected profits due after the bell from megacap technology giants including Microsoft and Google Alphabet owner.
What is happening
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The Dow Jones Industrial Average DJIA, -1.53%, fell 414 points, or 1.2%, to 33,636.
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The S&P 500 SPX, -1.74%, fell 69 points, or 1.6%, to 4,227.
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Nasdaq Composite COMP, -2.72% lost 362 points, or 2.8% to trade at 12,643.
Monday saw the biggest intraday turnover since February for the Dow, which rose 238 points, or 0.7%, wiping out a loss of nearly 500 points. The S&P 500 was up 0.6% and the Nasdaq Composite was up 1.3%.
Read also: US stocks ended the maniacal Monday in the green – but bounces during a day like this are not bullish
What drives the markets
Investors entered the busiest week of the U.S. corporate earnings season, drawing on the results of a number of corporate heavyweights released before the opening bell as they looked ahead to Microsoft Corp.’s megacap technology. MSFT, -2.33% and google parent Alphabet Inc. GOOG, -2.54%.
“This week a lot of attention will be paid to the announcements about the profit of the megacap. Netflix’s release has proven to be a great speed that the market is still trying to overcome, and hopefully there will be some horsepower to help us, created by reports and forecasts for the remaining FAANG shares this week, “said Brian Overby. , senior options analyst at Ally Bank, in comments by email.
Shares of the former high-ranking Netflix NFLX fell -3.89 percent to more than 40 percent after announcing last week that it had lost 200,000 subscribers in the first quarter.
While nearly 80% of companies that have reported for the quarter so far have exceeded profit expectations, including GE, United Parcel Service Inc. and Pepsico Inc., disappointing earnings forecasts, including those of JetBlue Airways Corp., weigh on the stock.
According to US economic data, orders in US durables increased by 0.8% in March, and business investment recovered after the first decline in a year, indicating that the economy continues to grow at a steady pace. The rise in durable goods orders is in line with consensus expectations from a study by economists at The Wall Street Journal.
A consumer confidence survey fell to 107.3 in April from 107.6, but Americans signaled they were optimistic enough about the economy to continue buying expensive items such as news cars and appliances.
S&P CoreLogic Case-Shiller’s housing price index in the 20 cities reported a 20.2% year-on-year increase in February, up from 18.9% the previous month, but new home sales in the US fell 8.6% to an annual rate of 763,000 in March, the government announced on Tuesday.
Companies in focus
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Twitter Inc. TWTR, -3.68% shares fell 3.1% to $ 50.11 after its board agreed on Monday to accept an offer from Tesla boss Elon Musk for $ 54.20 per share for the social media platform.
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The shares of 3M Co. MMM, -3.22% fell 2.1% after the manufacturer of leaflets for stickers and industrial equipment reported better-than-expected earnings for the first quarter.
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Shares of PepsiCo Inc. PEP, -0.06% rose 0.4% after providing profits and revenues that exceeded Wall Street forecasts.
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The shares of United Parcel Service Inc. of UPS, -2.62%, fell 3.6% after the package giant reported earnings and revenue for the first quarter that exceeded expectations.
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The shares of General Electric Co. GE, -11.33% fell 10.2% after the industrial conglomerate reported adjusted earnings and revenue for the first quarter, which exceeded expectations, but missed the free cash flow and provided a slightly more unfavorable outlook.
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The shares of JetBlue Airways Corp. JBLU, -9.00% fell 8% after the airline reported less-than-expected loss and revenue, which doubled to meet forecasts, but said it planned to further reduce capacity growth to help restore operational reliability. United Airlines Holdings Inc. UAL, -3.85% said on Tuesday it was launching the largest transatlantic expansion in its history with 30 new or renewed flights coming from mid-April to early June. Shares fell 2.1%.
What other assets do
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The yield on 10-year government securities TMUBMUSD10Y, 2.764% fell 9.7 basis points to 2.732%. Yields and debt prices are moving against each other.
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The ICE US Dollar DXY index, + 0.41%, a measure of the currency against a basket of six major competitors, rose 0.3%.
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Bitcoin BTCUSD, -4.02% fell 2.5% to trade below $ 39,500.
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Oil futures rose with the US benchmark CL.1, + 3.11% up 1.8% to trade back above the $ 100 per barrel threshold. GC00 gold futures, + 0.35%, rose 0.6% to $ 1,908 an ounce.
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Stoxx Europe 600 SXXP, -0.90% decreased by 0.4%, while the London FTSE 100 UKX, + 0.08% increased by 0.2%.
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Shanghai Composite SHCOMP, -1.44% fell 1.4%, while the Hang Seng Index HSI, + 0.33% rose 0.3% in Hong Kong, and the Japanese Nikkei 225 NIK, + 0.41% rose by 0.4%.
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