S&P 500, Dow slip from record highs ahead of earnings, inflation data
April 12, 2021US STOCKS-Wall St set to open higher after bumper earnings from big banks
April 16, 2021The New York Stock Exchange ended Wednesday in dispersed order, supported by the good quarterly results of several major US banks but hurt by the poor session of technology stocks.
The Dow Jones gained 0.16% to 33,730.89 points while the Nasdaq fell 0.99% to 13,857.84 points and the broader S&P 500 index, which made the roller coaster, finally gave up 0 , 41% at 4,124.66 points.
“JPMorgan Chase, Goldman Sachs and even Wells Fargo did better than expected, but a lot of these good results had been absorbed by the market, with the banking sector being the one that has grown the most since the start of the year.” Wall Street, observes Art Hogan of National Holdings.
The profits of these three banks soared between January and March thanks to the reduction of their reserves in a context of improvement of the American economy and thanks to the good health of the financial markets.
Shares of Goldman Sachs (+ 2.34%) and Wells Fargo (+ 5.53%) climbed, while that of JP Morgan (-1.87%) fell.
Citigroup and Bank of America will report their results on Thursday, Morgan Stanley will comply with this exercise on Friday.
Market participants also followed statements by Federal Reserve Chairman Jerome Powell, who was speaking via video conference at an event hosted by the Washington Economic Club.
Mr. Powell judged “very unlikely” that the institution will raise its key rates before 2022, currently in a range between 0% and 0.25%.
“This is in line with what he has said many times before and has helped calm the bond market as yields on Treasuries have barely budged,” Hogan said.
The Fed also published its Beige Book on Wednesday, a study carried out among companies in the country questioned between the end of February and the beginning of April, in which it reports a resumption of tourism and leisure in the United States.
“There was nothing astounding” in this report, notes Peter Cardillo of Spartan Capital Securities, “but it does point to sustained growth and a recovery in consumption.”
The tech giants, on the other hand, had a difficult session, which weighed heavily on the Nasdaq: Apple, Facebook and Amazon each fell by around 2%.
The session was also marked by the entry into the Nasdaq of the cryptocurrency trading platform Coinbase, whose stock closed at $ 328.28 after peaking at nearly $ 430.
That’s far more than the benchmark price of $ 250, released Tuesday night for guidance, and brings Coinbase’s capitalization to nearly $ 86 billion, making it the biggest valuation ever given to an entering US company. in stock exchange.
Among today’s values, biotech Moderna climbed 6.89%. The firm announced on Tuesday that its vaccine was 90% effective against Covid-19 and 95% against severe forms of the disease, according to new results, a slight decrease compared to a previous clinical trial.
