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
Stocks are looking up ahead of regular session as earnings season kicks off and investors grapple with accelerating inflation. JP Morgan profit fell 42% after the bank said deal volume fell and raised its loan loss reserves linked to market dislocation stemming from Russian invasion of Ukraine. Delta Air reported smaller than expected quarterly loss but estimated profitable current quarter.
JPM DAL
JPM DAL
Stocks turned lower and gave up early gains after the tech sector lost momentum and traders reviewed latest inflation data showing home price increase of only 5% setting the stage for elevated core inflation data in the months to follow. Oil prices jumped 5% above $100 a barrel after China relaxed lockdown measures. 10-year bond yield eased to 2.72% as investors await bank earnings on Thursday.
XOM CVX HES MPC
XOM CVX HES MPC
CarMax fell 9% and extended YTD loss to 26% after the used-car retailer missed sales estimates. Average car price jumped 40%. PG&E rose after it agreed to a $55 million settlement for two fires in Northern California. Albertsons sank 7% despite beating earnings estimates. Chipotle rose but Chegg, HP Enterprise, Starbucks, and Cisco fell on negative broker comments.
KMX CHGG SBUX HPE
KMX CHGG SBUX HPE
U.S. indexes gained after inflation rate in March rose 8.5% from a year ago and increased 1.2% in the month. Traders focused on core inflation rate slowing to 0.3% in the month but rose 6.5% in 12 months. Tech stocks led gainers with Microsoft, Qualcomm, Broadcom, and Nvidia gained more than 1%. Energy companies advanced following an uptick in crude oil prices. 10-year bond fell to 2.72%.
TSLA MSFT QCOM AVGO NVDA
TSLA MSFT QCOM AVGO NVDA
Inflation worries gripped the market sentiment and tech stocks led the decliners extending losses in the final hour of trading. The Nasdaq Composite fell 2% and for the year sank 15.3%. Latest reading on inflation tomorrow is expected to show a 4-decade high above 8%. 10-year bond yield extended 5-week long rise to 2.79% surging from the low of 0.57% in August 2020.
XOM GOOG ADBE AAPL
XOM GOOG ADBE AAPL
China stocks took another dive as Covid-19 lockdown begins to bite activities. Auto sales in March fell 10% from a year ago to 1.58 million as factories remain constrained and supply chains are disrupted. Producer price inflation increased higher than expected 8.3% in March. Guangzhou, the manufacturing hub, closed in-person schools. The EV maker Niio on Saturday suspended vehicle production.
NIO BABA EDU
NIO BABA EDU
Airlines stocks advanced ahead of Delta Air earnings scheduled on Wednesday. Despite the surge in fuel cost in the previous quarter, jet fuel price increases are still lagging while the demand for leisure and corporate travel is healthier than a year ago. Leading airlines have shown the pricing power and domestic ticket costs are at least up 30% from the previous quarter.
DAL AAL JBLU
DAL AAL JBLU
Market indexes opened lower led by weakness in tech stocks for the fourth week in a row and bond yields climbed as investors prepared for faster than anticipated rise in interest rates. Earnings season is expected to pick up momentum this week with large banks and airlines scheduled to report. Crude oil prices fell in New York and international markets on China demand worries.
MSFT BAC WFC AAL DAL
MSFT BAC WFC AAL DAL
Tech stocks led the decliners for the third week in a row and U.S. indexes closed mixed. Nasdaq Composite fell 1.3% on Friday capping the weekly loss of 3.9% while the S&P 500 fell 0.3% and 1.3% respectively. Chipmakers led the weakness with persistent supply chain worries and growing threat of a recession. For the year, tech heavy Nasdaq and the S&P 500 are down 13.4% and 6.4% respectively.
TSLA AAPL NVDA MU GOOG
TSLA AAPL NVDA MU GOOG
Transportation stocks fell again on the rising supply chain disruptions linked to China and Europe and surging inflation in the U.S. The tight lockdowns in China, the rerouting of energy supplies in Europe, and the elevated inflation are trimming the freight demand volume in the U.S. UPS fell for the 8th day in a row and for the year the industry index is down 12%.
UPS FDX UNP CP CHRW
UPS FDX UNP CP CHRW