Nasdaq underperforms on worries about tech earnings ahead
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Tesla falls after issuing higher 2023 spending forecast
Microsoft, Amazon drag on the market ahead of reports
First Republic Bank jumps ahead of results
US House to vote on Republican debt limit bill this week
Indexes mixed: Dow up 0.2%, S&P up 0.09%, Nasdaq down 0.29%
Adds preliminary closing prices, commentary
By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 24 (Reuters) -The Nasdaq closed lower on Monday, underperforming the S&P 500 and the Dow, with pressure from high-profile megacaps as investors awaited results from companies including Microsoft while Tesla shares fell on concerns about its spending plans.
Tesla Inc TSLA.O finished down 1.5% after the automaker raised its 2023 capital expenditure forecast to ramp up output, making it the second biggest drag on the benchmark S&P 500 behind Microsoft Corp MSFT.O.
Shares in Microsoft, up more than 17% so far this year, were under pressure Monday as investors appeared anxious about its results, due out on Tuesday. Another heavyweight laggard was Amazon.com Inc AMZN.O, which is on deck to report this week along with Alphabet Inc GOOGL.O, and Meta Platforms Inc META.O.
A rally in these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.
"People are a little tentative that the outperformance may not continue in earnings season, which thus far has been quite a bit better than expected. Granted the bar was low," said Randy Frederick, managing director, trading and derivatives at Charles Schwab in Austin, Texas.
Frederick also pointed to anxiety about upcoming economic data such as first-quarter growth and inflation readings.
The Dow Jones Industrial Average .DJI rose 66.44 points, or 0.2%, to 33,875.4 while the S&P 500 .SPX gained 3.52 points, or 0.09%, at 4,137.04. The Nasdaq Composite .IXIC dropped 35.25 points, or 0.29%, to 12,037.20.
Among the S&P 500's 11 major sectors, energy was the strongest, rising 1.5%, while technology .SPLRCT was the weakest, down 0.4%.
Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, said the Philadelphia semiconductor index .SOX, which closed down 0.5%, was likely underperforming due to increasing global tensions with China.
U.S. stocks have largely held steady through the start of the earnings season on stronger-than-expected results from big banks, allaying concerns about a contagion from the regional banking crisis in March.
Of the 90 S&P 500 companies that have reported first-quarter results so far, nearly 77% have topped analysts' estimates compared with the long-term average beat rate of 66%, as per Refinitiv IBES data.
Early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence are among the data scheduled for release this week.
Mixed data last week cemented bets of a 25-basis-point rate hike by the Federal Reserve in May, with money market traders pricing in a 92% chance of such a move, according to CME Group's Fedwatch tool. Fed policymakers said in the past week that the central bank has more work to do to bring down inflation.
U.S. Treasury yields eased following recent signs of slowing inflation and economic activity, though investors appeared increasingly concerned about a government spending stand-off and the potential for the United States to hit its debt ceiling sooner than expected. US/
U.S. House of Representatives Speaker Kevin McCarthy said the House would vote on his spending and debt bill this week.
Amazon fell 0.7% while Meta pared earlier losses to close off just 0.04%. Google's parent Alphabet managed a 0.5% gain. AT&T Inc T.N, which reported disappointing results on Thursday, deepened last week's losses with a 3.8% drop on Monday.
Also dragging on the S&P 500 was air conditioner maker Carrier Global Corp CARR.N, which closed down 7.3%, after reports, citing unidentified sources, said it was in advanced talks to acquire German industrial manufacturer Viessmann for more than $12 billion including debt.
In the penny-stock department, shares in once-popular home goods retailer Bed Bath & Beyond BBBY.O tumbled 35.7% to 19 cents after it declared bankruptcy on Sunday. Retail rivals including Target Corp TGT.N and Walmart Inc WMT.N gained 1.1% and 0.7% respectively on Monday.
After closing up 12.2%, First Republic Bank FRC.N shares lost ground in after-the-bell trading following the closely watched regional bank's quarterly report, which showed its deposits fell 41% in the first quarter.
The stock was last down almost 87% year-to-date as the U.S. banking crisis sent investors to the exits.
Advancing issues outnumbered decliners on the NYSE by a 1.32-to-1 ratio; on Nasdaq, a 1.41-to-1 ratio favored decliners.
The S&P 500 posted 21 new 52-week highs and two new lows; the Nasdaq Composite recorded 64 new highs and 201 new lows.
On U.S. exchanges 9.54 billion shares changed hands compared with the 10.30 billion average for the last 20 sessions.
US megapcap stocks recover somewhat after 2022 collapsehttps://tmsnrt.rs/43W5UHI
Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi and Richard Chang
Похожие активы
Последние новости
Правовая оговорка: Компании группы XM Group предоставляют только услуги по исполнению сделок и доступ к нашей торговой онлайн-среде, в которой пользователи могут просматривать и (или) пользоваться материалами, доступными на вебсайте либо доступными по ссылкам с данного сайта на другие. Предоставление доступа к онлайн-среде не меняет сути предоставляемых услуг и не расширяет их. Такой доступ и пользование материалами предоставляются с учетом:(i) «Условий и положений»; (ii) «Предупреждений о рисках» и (iii) полного текста «Правовой оговорки». Следовательно, подобные материалы предоставляются лишь в качестве информации общего характера. В частности, просим Вас иметь в виду, что материалы, содержащиеся в нашей торговой онлайн-среде, не являются ни просьбой осуществить какие-либо транзакции на финансовых рынках, ни предложением к осуществлению подобных транзакций. Торговля на любом финансовом рынке подразумевает большой риск потери Вашего капитала.
Все материалы, опубликованные в нашей торговой среде, предоставляются только в образовательных или информационных целях и не содержат (и не должны рассматриваться как содержащие) финансовых, инвестиционных или торговых рекомендаций, а также информации о стоимости наших услуг по предоставлению доступа к рынкам, либо предложения или содействия в проведении транзакций по какому-либо финансовому инструменту или по незапрашиваемым финансовым услугам по отношению к Вам.
Любые материалы на данном вебсайте, созданные третьими лицами, а также материалы, подготовленные XM, такие как мнения экспертов, новости, исследования, анализ, котировки и другая информация, а также ссылки на сторонние сайты предоставляются в виде «как есть», как рыночная информация общего характера, и не являют собой рекомендации по инвестициям. Принимая во внимание то, что любые материалы рассматриваются как инвестиционное исследование, Вам следует учесть и принять тот факт, что никакие материалы не подготавливались и не предназначались к использованию в соответствии с правовыми нормами, способствующими независимости инвестиционных исследований. Следовательно, материалы следует рассматривать как материалы рекламного характера согласно соответствующим законам и правовым нормам. Рекомендуем Вам прочесть и уяснить для себя положения наших «Уведомления о субъективном инвестиционном исследовании» и «Предупреждения о рисках» в отношении приведённой выше информации. С этими документами можно ознакомиться здесь.
