Hi Everyone,
The stock market finished lower following two positive sessions, as bulls got spooked by much worse-than-expected U.S. economic numbers. The Dow was down 32 or 0.1%, to 24,102, the Nasdaq lost 122, or 1.4%, to 8,608, while the S&P 500 fell by 15, or 0.5%, to 2,863. Advancing issues outnumbered decliners by an almost 4-to-1 ratio on the NYSE, where volume remained relatively light.
Traders said that even though the major indices finished near their intraday lows, the technical damage was limited, especially in the most lockdown-sensitive sectors. As one trader explained, “One would expect stocks to be vulnerable following such a strong snapback rally, but today, the large-cap benchmarks showed resilience in the face of bearish economic releases, which has to be a huge plus for bulls.”
Google parent Alphabet (GOOG, -3.3%) reported earnings just after the closing bell, and even though the company missed on its bottom line, its sales topped the consensus estimate, giving a boost to the stock in after-hours trading. The company also announced earlier today that it does not expect its work-from-home order to be lifted before June 1, which probably added to the intraday selling pressure on its shares and the tech sector. The fact that Google’s ad revenue shows resilience is great news not just for the company, but for the broader market as well, even though the second quarter will likely be the real test for the global economy and Google alike.
The avalanche of key earnings reports will continue tomorrow, as companies worth well over $3 trillion will be reporting, with a focus on tech issues. Microsoft (MSFT, -2.4%) and Facebook (FB, -2.5%) will highlight the after-hours session, but Boeing’s (BA, +2%) and Mastercard’s (MA, -0.2%) numbers could make waves before the opening bell. Boeing has been one of the hardest-hit mega-cap companies in the past couple of months, but Microsoft and Facebook recovered most of their losses from March, so volatile trading is all but guaranteed in their shares following their reports.
As always, have a great evening, stay calm, stay home, stay healthy, do your part to flatten the curve and stay tuned!!!
Joe
