Hurt by profit taking, Wall Street goes back down after setting new records

Wall Street slips from record levels; Tesla drops after fatal car crash
April 19, 2021
Wall Street is back in good spirits after two days of decline
April 23, 2021

Hurt by profit taking, Wall Street goes back down after setting new records

The New York Stock Exchange closed lower on Monday, prone to profit taking after record highs on Friday and at the start of a busy week in corporate earnings.

The highly technological Nasdaq led the other indices down, losing 0.98% to 13,914.77 points. The Dow Jones index dropped 0.36% to 34,077.63 points and the S&P 500 lost 0.53% to 4,163.26 points.

On Friday, taking advantage of good quarterly results and data suggesting a strong rebound in the US economy, the Dow Jones and the S&P 500 had reached new records. The Nasdaq, which celebrated Monday the 50th anniversary of its launch on the market in 1971, had finished a few dozen points from its peak in mid-February.

“On Monday, we saw the market correct itself a bit (…) with profit taking that affected the technology sector,” said Peter Cardillo of Spartan Capital Securities.

“Every time the market peaks, it pulls back and starts moving forward,” added the analyst.

The stock market week was to be dominated by quarterly results.

On Monday, Coca-Cola exceeded expectations despite declining profit having suffered from the impact of the pandemic on its sales in restaurants or cinemas.

In 2021, the group forecasts organic revenue growth of 5% to 10% and 5% to 15% in earnings per share. The title gained 0.65%.

Motorcycle maker Harley Davidson posted much better-than-expected profits and its stock rose almost 10%.

IBM (-0.49%) and United Airlines (-1.58%) were to follow after the close, while the results of Johnson & Johnson (+ 0.25%), Procter & Gamble (-0 , 20%) as well as Netflix (+ 1.45%).

Thirty-four S&P 500 companies have already released their first quarter results and of those, 88% have beaten estimates, said Art Hogan of National Securities. These results are on average 22% higher than expected.

Tesla dropped 3.40% after a fatal accident Saturday night involving one of its electric cars in which there did not appear to be a driver behind the wheel, police said.

The chip group Nvidia lost 3.46% after an announcement by the British government opening an investigation into the takeover of Britain’s Arm, citing national security concerns.

The war in European football where a handful of the richest clubs want to form a private “Super League”, breaking with the UEFA Champions League, has pushed up the title of the football club by 6.74%. English Manchester United.

The other rebel clubs include Real Madrid, FC Barcelona and Juventus Turin in particular, whose title also soared (+ 17.85%) on the Milan Stock Exchange.

Yields on 10-year Treasuries rose little to 1.60%.