A big tech sell-off this week set the key benchmarks for a turnaround
The first week of May got off to a strong start, as investors showed Reopening of optimism when several states lifted Covid-19 restrictions. In addition, strong corporate earnings have further boosted investor sentiment. However, it got worse on Tuesday. Although the Dow ended the session slightly higher, it spent most of the day trading the red. A Big tech sell-off Treasury Secretary Janet Yellen’s comments on interest rates took a massive toll on the S&P 500 and Nasdaq, both of which were lower.
Excellent earnings paired with optimistic economic data and statements by US President Joe Biden about the waving of the Covid-19 vaccine Patent protectionhelped stocks rally on Wednesday. In fact, the Dow hit a record close. It did so again on Thursday when the blue chip index hit its second all-time high in a row, better than expected Unemployment Claims Data. additionally, The Nasdaq posted its four-day loss in the last hour of trading. Until Friday, however, the benchmarks had their eye on weekly losses after a disappointing April Report on Payroll Outside AgricultureAlthough the indices rebounded that day and the blue-chip giant hit a third record high in a row.
All eyes on vaccine stocks
Stocks linked to the vaccine race have made waves as the pandemic has progressed, and with the rollout already well underway, it should come as no surprise that investors are eager to see the results. Pfizer (PFE) reported a decline in earnings and sales in the first quarter and raised its guidance for the full year. Also, the company moved to get Vaccine approval for young people between 12 and 15 years.
Elsewhere, Vaxart (VXRT) popped up after reporting successful early study results for his oral Covid-19 vaccine Candidate. Last, Moderna (MRNA) declined despite better than expected profit and sales forecast. Instead, a loss of sales weighed on the stock.
Earning season in full swing
More high-profile corporate earnings reports have been received in the past five days. Unfortunately for XPO Logistics (XPO), the company was unable to take advantage of its benefits quarterly profit. The same applied to iRobot (IRBT), which despite a Top line beat. A handful of names, however, have had more successful trips to the Merit Denominational, including Under armor (UAA) and T-Mobile (TMUS) – both of them drew bull grades according to their reports.
Some others had good news to share with investors. Regeneron Pharmaceuticals (REGN) then redeemed itself blowing past Analysts’ estimates, as did ridesharing giant Uber (UBER), though analysts had mixed feelings about the latter. Roku (ROKU) too surprised Wall Street with a staggering profit, while AMC Entertainment (AMC) after a narrower than expected Loss in the first quarter.
Reports continue to flow in, economic data slows down
Looking ahead, earnings season shows no signs of slowing down, including Airbnb (ABNB), Alibaba (BABA), Walt Disney (DIS) and yeti (YETI) everyone should report. In terms of economic data, it will be a slow build week. Investors will have little to digest at first, though a federal budget balance, retail sales, and initial and ongoing Unemployment claims Data will certainly occupy them later.
Meanwhile, traders can check out the latest Monday morning outlook as Schaeffer’s Senior VP of Research, Todd Salamone, examines the cautionary story of Doji candles. Rocky White, Senior Quantitative Analyst at Schaeffer, has also investigated how copper can be used for determination Market strength in its last indicator of the week.