(Bloomberg) — Stocks fell as a decline in some of the world’s largest technology companies overshadowed a fresh round of better-than-estimated corporate earnings. The dollar climbed.
The tech-heavy Nasdaq 100 underperformed major equity benchmarks. Megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. retreated. Pfizer Inc. rose as the drugmaker raised its forecast for Covid-19 vaccine revenue this year amid a jump in profits, while CVS Health Corp. gained after boosting its earnings outlook.
Earlier Tuesday, a sharp drop in U.S. equity futures left traders scrambling for reasons to explain the move. For several analysts, the reason could be simple: stocks are hovering near-all time highs and have struggled to gain much traction despite a blockbuster earnings season.
“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”
Data Tuesday showed that the U.S. trade deficit widened to a new record in March as the value of imports surged to a fresh high. Investors will also be watching the latest readings on factory orders and durable goods.
Here are some key events to watch this week:
U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on Friday
These are some of the main moves in markets:
The S&P 500 fell 0.4% as of 9:31 a.m. New York timeThe Nasdaq 100 fell 0.8%The Dow Jones Industrial Average fell 0.2%The Stoxx Europe 600 fell 0.6%The MSCI World index fell 0.5%
The Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2019The British pound fell 0.4% to $1.3851The Japanese yen fell 0.1% to 109.18 per dollar
The yield on 10-year Treasuries declined two basis points to 1.58%Germany’s 10-year yield declined three basis points to -0.23%Britain’s 10-year yield declined four basis points to 0.80%
West Texas Intermediate crude rose 1.7% to $66 a barrelGold futures fell 0.1% to $1,790 an ounce
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.