The S&P 500 and Nasdaq Composite indexes extended losses to the fourth week and April month sell-off as coronavirus cases spike in China. The new tough measures in China are likely to prolong supply chain disruptions as Shanghai enters the fourth week of lockdown. Bond yields and crude oil prices ease.
Benchmark indexes extended losses for the third week in a row as investors prepare for faster rate increase and adjust economic outlook. The ongoing war in Europe and China lockdown are intensifying market uncertainties, sustaining energy price inflation, and lengthening supply chain disruptions.
NUE FCX MSFT AAPL DDS
NUE FCX MSFT AAPL DDS
The S&P 500 and Nasdaq indexes trade lower as bond yields continue to rally and global markets adjusts to Fed's willingness to lift rates faster. European markets are down 1.5%, Nikkei fell 1.6% and the Japanese yen dropped to a 20-year low. Sensex in India drooped 1.2% as bond yields advanced.
U.S. Treasury yields gained after the comments from Fed Chairman Powell increased the possibility of a 50 basis points hike at the next policy meeting in May.
The S&P 500 and Nasdaq Composite indexes are trading higher on earnings optimism. Crude oil is trading up 1% and 10-year U.S. Treasury bond yield climbed up to 2.85%.
Netflix plunged as much as 37% after the streaming service guided a loss of additional 2 million in the current quarter. Netflix's cautious outlook sparked widespread losses in other streaming services providers including Disney, Paramount and Discovery and in Internet-based growth stocks Shopify and Wayfair. NetGear regained some of the losses after reporting weaker than expected quarterly revenues. Halliburton reported 35 cents a share. Plug Power agreed to provide liquid green Hydrogen to power lift trucks at Walmart fulfillment centers.
NFLX NTGR HAL SHOP W
NFLX NTGR HAL SHOP W
U.S. stock index futures pointed to a higher opening as investors digested a flood of earnings from major companies. Crude oil traded flat and bond yields were on the defensive in the early trading. Netflix plunged 28% after the company reported quarterly net subscribers declined for the first time in a decade and guided higher losses in the current quarter. IBM earnings were ahead of expectations and P&G guided higher sales and passed on higher costs to consumers. Tesla and United Airlines are scheduled to release earnings after the market closes.
IBM NFLX PG LULU
IBM NFLX PG LULU
The S&P 500 index and Nasdaq Composite gained 1.5% and 2% respectively. The benchmark indexes opened higher and steadily climbed higher ahead of earnings from tech bellwethers. Crude oil price fell 5% and natural gas price dropped 8% fueling investor optimism. However, 10-year U.S. Treasury bond yield rose to 2.938%. Airlines stocks and tech stocks led the gainers.
IBM NFLX AAL GOOG XRX
IBM NFLX AAL GOOG XRX
U.S. indexes opened higher but investors remained focused on the latest earnings and war developments in Europe. Yield of 10-year U.S. Treasury bond advanced to 2.92%, a new 3-year high. Crude oil declined $4 a barrel as demand from China is expected to soften on rising Covid-19 cases. European markets fell more than 1% after Russia launched a new assault on cities in eastern Ukraine.
U.S. stocks lacked direction after 10-year Treasury bond yield inched up to 2.86%, crude oil added a dollar to $107.90 a barrel, and gold inched up 0.3%. Investors focused on a busy week of earnings ahead and are looking for clues how corporations are facing rising costs. Several leading companies including American Express, Travelers, J&J and Verizon are scheduled to release earnings. American Airlines, United Airlines, Alaska Air, CSX, and Union Pacific will provide deeper insights in freight and passenger travel costs.
JNJ IBM UNP AAL AXP
JNJ IBM UNP AAL AXP
U.S. stock futures point to a mixed opening after a 3-day holiday as the U.S. Treasury yields continue to climb. The 10-year bond yield is trading above 2.87%. The yield has jumped from 1.71% about 45 days ago. Investors remained worried that the rising inflation and elevated crude oil prices are exacerbating consumer price increase and overwhelming corporate earnings growth. About 300 companies are scheduled to release earnings this week.
Tech stocks led the losers after inflation worries dominated trading and investors reviewed a barrage of earnings from large banks. Though there were signs of hope, all major banks reported a sharp decline in earnings. Crude oil price spiked up again and surpassed $105 a barrel in New York and $110 in international trading. 10-year Treasury yield inches to a new 3-year high of 2.83%.
NKE CAT TWTR AMZN FDX
NKE CAT TWTR AMZN FDX
Bank earnings dominate morning trading sentiment and stock index futures are pointing to flat opening. Citigroup, Morgan Stanley, and Goldman Sachs reported better than expected earnings. Wells Fargo said quarterly profit declined 21% on weaker than expected mortgage lending. Retail spending rose modest 0.5% in March and new weekly jobless claims last week were 185.000.
GS MS C TWTR
GS MS C TWTR
Benchmark indexes accelerated gains in the final hours of trading as investors remained focused on latest earnings announcements. Travel and airline stocks gained after Delta Air offered an optimistic view for the current quarter. American Airlines, Southwest, Carnival and Expedia led gainers. Tech stocks reversed three days of losses and 10-year bond yield edged down to 2.70%.
DAL AAL LUV CCL EXPE
DAL AAL LUV CCL EXPE