Stocks resume losses ahead of Big Tech earnings

0

US stocks plunged on Tuesday, accelerating what has been largely a steady selloff this month after a brief respite on Monday. Investors are expecting a batch of tech mega earnings in the coming days, with reports from Microsoft (MSFT) and Alphabet (GOOGL) due out after the bell.

The S&P 500 fell 1.5%, while the Dow Jones Industrial Average lost 450 points after the index posted a 500-point rally on Monday. The tech-heavy Nasdaq Composite fell 2.6%.

Investors are in the thick of earnings season, with the most weighted components of the S&P 500 due to report results this week. Facebook’s parent company Meta (FB), Apple (AAPL) and Amazon (AMZN) are also expected to report quarterly results through Thursday.

On Friday, a fifth of companies in the index released results for the first quarter so far, with 79% reflecting a profit overshoot for the period – above the five-year average of 77%, according to the latest available data. of Set of facts. However, the magnitude of the earnings overrun is below the five-year average: 8.1%, compared to 8.9%.

“The lower earnings growth rate for the first quarter of 2022 compared to recent quarters can be attributed to both a difficult comparison with unusually high earnings growth in the first quarter of 2021 and a continued macroeconomic headwind,” said said John Butters, principal earnings analyst at FactSet, in a note.

U.S. stocks tracked global equity market moves on Monday, with major equity indices in Europe and Asia falling largely on renewed fears that a COVID outbreak in China could trigger a new wave of lockdowns and further disrupt markets. global supply chains.

Fears of an economic slowdown also weighed on bonds and oil, with the 10-year Treasury yield falling to 2.8% and West Texas Intermediate Crude Oil futures trading below. $100 a barrel.

“I think the most interesting thing happening in China right now is not that the yuan is moving and the economy is slowing down – it’s that everything that’s going on right now, we knew it. weeks ago,” China Beige Book CEO Leland Miller told Yahoo Finance Live. “We knew the economy was slowing down, we knew they weren’t going to provide any major stimulus, we knew the lockdowns were spreading from Shanghai to other major cities, we knew the Fed was increasing, we knew that there was a policy of repression, so it’s interesting that people see a pivotal moment today.”

Elsewhere in the markets, Twitter shares jumped 5.7% after the social media giant officially announced that he agreed to be acquired by Tesla CEO Elon Musk for $54.20 per share, or $44 billion. Twitter shareholders are expected to receive $54.20 in cash for each share held, representing a 38% premium to Twitter’s April 1 closing level.

“It’s the best thing that’s ever happened to Twitter,” Thomas Hayes of Hedge Fund Tips told Yahoo Finance Live. “Elon Musk will rehabilitate the building and generate a lot of value for users.”

12:04 p.m. ET: S&P 500 drops 2%, Dow erases 580 points, Nasdaq drops 3%

Here are the top moves in the markets as of 12:04 a.m. ET:

  • S&P 500 (^GSPC): -86.24 (-2.01%) to 4,209.88

  • Dow (^ DJI): -572.31 (-1.68%) to 33,477.15

  • Nasdaq (^IXIC): -408.91 (-3.14%) to 12,595.94

  • Raw (CL=F): +$3.05 (+3.10%) at $101.59 per barrel

  • Gold (CG=F): +$8.00 (+0.42%) at $1,904.00 per ounce

  • 10-year cash flow (^TNX): -8.3 bps for a yield of 2.7430%

9:30 a.m. ET: Stocks retake losses to extend April selloff

Here’s where the major indices were at the start of trading on Tuesday:

  • S&P 500 (^GSPC): -22.31 (-0.52%) to 4,273.81

  • Dow (^ DJI): -224.66 (-0.66%) to 33,824.80

  • Nasdaq (^IXIC): +165.56 (+1.29%) at 13,004.85

  • Raw (CL=F): +$1.65 (+1.67%) at $100.19 per barrel

  • Gold (CG=F): +$10.90 (+0.57%) to $1,906.90 per ounce

  • 10-year cash flow (^TNX): -7.7 bps for a yield of 2.7490%

9:23 a.m. ET: Home prices jump almost 20% in February

US house price growth accelerated during the month of February, but a slowdown could be underway.

Standard & Poor’s reported Tuesday that its national S&P CoreLogic Case-Shiller home price index posted a 19.8% gain in the second month of the year, from 19.1% in January. The figure marks the third highest reading since the index was developed in the 1980s.

20-City’s results beat analysts’ expectations of a 19.2% annual gain, according to Bloomberg consensus estimates.

The 10-City Composite’s year-on-year increase was 18.6%, down from 17.3% the previous month. The 20-City Composite posted a 20.2% year-over-year gain, compared to 18.9% the previous month.

“The macroeconomic environment is changing rapidly and may not support extraordinary home price growth for long,” Craig J. Lazzara, managing director and global head of index investing strategy at S&P DJI, said in a statement. “The post-COVID recovery in general economic activity fueled inflation, and the Federal Reserve began raising interest rates in response.”

“We may soon start to see the impact of rising mortgage rates on house prices,” he added.

9:09 a.m. ET: PepsiCo raises full-year revenue forecast on rising prices and demand for soda

PepsiCo (PEP) reported higher-than-expected quarterly earnings of $1.29 per share, beating analysts’ expectation of $1.23 per share, according to consensus data from Bloomberg.

The beverage and snack maker also raised its full revenue forecast, buoyed by higher prices and a rebound in demand for its sodas in theaters and restaurants. Pepsi now forecasts an 8% increase in organic revenue in fiscal 2022, compared to a forecast of 6%.

During the quarter, the company also said it took a $241 million charge related to the Russia-Ukraine crisis.

“Going forward, we will focus on controlling what we can, such as putting more emphasis on productivity and refining our revenue management capabilities, while continuing to make the necessary long-term investments to strengthen our business and win in the market,” PepsiCo said. CEO Ramon Laguarta said in the Press release.

Pepsi shares were little changed in premarket trading.

Cans of Pepsi are seen at the store in this illustration photo taken in Krakow, Poland on March 18, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

7:10 a.m. ET: Futures slide after stocks rebound from previous session losses

Here are the main developments in futures trading ahead of Tuesday’s open:

  • S&P 500 Futures Contracts (ES=F): -16.50 (-0.40%) to 4,276.25

  • Dow futures (JM=F): -130.00 (-0.38%) to 33,835.00

  • Nasdaq futures contracts (NQ=F): -62.50 (-0.46%) to 13,473.25

  • Raw (CL=F): -0.35$ (-0.36%) to 98.89$

  • Gold (CG=F): +$12.70 (+0.67%) to $1,908.70 per ounce

  • 10-year cash flow (^TNX): 0.00 bp for a yield of 2.8260%

6:15 p.m. ET Monday: Stock futures muted ahead of earnings report mega cap earnings

Here are which stock futures were trading after the market Monday night:

  • S&P 500 Futures Contracts (ES=F): -1.75 (-0.04%) to 4,291.00

  • Dow futures (JM=F): -10.00 (-0.03%) to 33,955.00

  • Nasdaq futures contracts (NQ=F): -19.50 (-0.14%) to 13,516.25

  • Raw (CL=F): -0.10$ (-0.00%) to 98.66$

  • Gold (CG=F): +$3.20 (+0.17%) at $1,899.20 per ounce

  • 10-year cash flow (^TNX): -8 bps for a yield of 2.8260%

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, instagram, Youtube, Facebook, Flipboardand LinkedIn

Share.

Comments are closed.