Here are the top news, trends, and analysis that investors need to get their trading day started:
1. Stocks fall after Dow, S&P 500 falls from record close
Traders on the floor of the New York Stock Exchange.
US stock futures fell Tuesday as investors factor in quarterly results of four Dow components and look forward to Netflix gains and an afternoon Apple product event. Apple is expected to introduce new iPads, iMacs and AirTags for device tracking. Tobacco supplies came under pressure after the Wall Street Journal reported that the White House could order tobacco companies to lower nicotine levels in all cigarettes.
The Dow Jones Industrial Average started the week after the record close on Friday. The S&P 500 also fell slightly from its previous record close. The Nasdaq lost 1% on Monday after shyly surfacing on Friday after the tech-heavy index’s record close in February. The 10-year government bond yield remained stable early Tuesday after rising above 1.6%. However, it remained below the last month’s high of 14 months.
2. Four Dow stocks are reporting gains, including J&J and IBM
Dow stocks Johnson & Johnson, Procter & Gamble and Travelers reported results before the bell. IBM, also a Dow stock, released quarterly results late Monday.
- J&J surpassed first quarter earnings and sales estimates, including $ 100 million in sales of its Covid vaccine suspended in the U.S. as health officials investigate rare but serious blood clotting problems. CFO Joseph Welk told CNBC Tuesday that he hoped the “benefit-risk profile” for the company’s vaccine would have an impact. Shares fell in the pre-market.
- P&G exceeded expectations for earnings and sales in the third quarter of fiscal as consumers maintained Covid buying trends like buying more detergents and starting to buy beauty products again. Shares fell in the pre-market.
- Travelers reported better than expected results in the first quarter. The receipts were broadly in line with the estimates. The insurance giant increased its dividend and added $ 5 billion to its buyback program. In the pre-market the shares rose by 1%.
- IBM achieved profits and sales in the first quarter that were above estimates. The enterprise technology and services provider saw revenue growth after four quarters of decline. In the pre-market the shares rose by almost 3%.
3. United Airlines is reporting a quarterly loss for the fifth consecutive year
Travelers arrive in Chicago, Illinois for flights at O’Hare International Airport on March 16, 2021.
Scott Olson | Getty Images
United Airlines shares fell 2.5% on the Tuesday prior to entering the market, the morning after the airline reported an above-expected loss of $ 7.50 per share in the first quarter, the fifth straight quarterly loss. Revenue of $ 3.22 billion was down nearly 60% year over year and fell short of estimates. Higher fuel costs and continued subdued demand due to Covid detracted from results. However, United expects profitability to pick up again later this year as Covid vaccinations surge and governments relax travel restrictions.
4. Elon Musk says the autopilot did not activate in the Tesla crash in Texas
A Tesla logo on a Model S is photographed at a Tesla dealer in New York.
Lucas Jackson | Reuters
Elon Musk denied that Tesla’s automated driving systems were involved in a fatal accident in the suburb of Houston, Spring, Texas on Saturday. The Tesla CEO tweeted on Monday: “Previously restored data logs show that autopilot was not activated.” Local police said no one was in the driver’s seat when the 2019 Tesla Model S turned off the road and went up in flames. The two men in the car died. Two federal agencies, the NHTSA and the NTSB, are working with local police to investigate the accident. Preliminary results are inconclusive.
5. A fortified city in Minneapolis awaits Chauvin’s verdict
Former Minneapolis Police Officer Derek Chauvin participates in the final skirmishes during his trial of second degree murder, third degree murder, and second degree manslaughter in the death of George Floyd with defense attorney Eric Nelson in Minneapolis, Minnesota on April 19, 2021 Still from video.
Pool via Reuters