By Caitlin Ostroff and Alexander Osipovich
The Nasdaq Composite on Monday set its first record since
February as investors looked ahead to a busy week of corporate
earnings reports, including from some of the biggest technology
The tech-heavy index gained 121.97 points, or 0.9%, to close at
14138.78, its 13th record close of 2021.
The S&P 500 ticked up 7.45 points, or 0.2%, to 4187.62, also
setting a record -- its 24th of the year. The Dow Jones Industrial
Average slipped 61.92 points, or 0.2%, to 33981.57 and is just 0.6%
below its high from earlier this month. All three indexes posted
modest declines last week.
Technology stocks have lagged behind other sectors this year,
including financials, industrials and energy. While highflying tech
stocks led the market's rebound from the depths of last year's
coronavirus-fueled selloff, investors in recent months have pivoted
toward shares of companies with less lofty valuations, as well as
economically sensitive stocks that could benefit from a broad
More than one-third of the companies in the S&P 500 are
reporting quarterly results this week. Investors will be watching
to see whether the earnings justify rich valuations for some
companies, especially in tech.
Tesla, one of investors' most favored stocks, reported a record
quarterly profit as it released earnings after the closing bell.
Apple and Facebook are scheduled to report Wednesday, followed by
Amazon.com on Thursday.
"Earnings didn't really matter over the last couple of quarters
because investors were focusing on the coronavirus," said Gregory
Perdon, co-chief investment officer at private bank Arbuthnot
Latham. "They'll start to look under the bonnet more than they
Other companies scheduled to report this week include Boeing,
Exxon Mobil, Ford Motor and Mastercard.
Stocks have been jittery in recent days after flare-ups of
Covid-19 cases in India and Japan triggered concerns about the pace
of the global economic recovery. Money managers' risk appetite also
was jolted by worry that the Biden administration may boost
The Federal Reserve's key interest-rate-setting committee is set
to hold its monthly policy meeting this week. Investors will be on
alert for any change in tone and outlook from the Fed following a
spate of strong U.S. economic data. Loose monetary policy from the
U.S. central bank has underpinned the stock market's rally, and any
sign of a shift toward a more inflation-fighting posture could
spook the markets.
"The glaring risk is that the market loses confidence in the
Fed's handling of inflation," said Eric Mintz, co-portfolio manager
at Eagle Asset Management. "If the market thinks the Fed is behind
the eight ball, that could derail things."
The 10-year U.S. Treasury yield edged up to 1.568%, from 1.566%
Friday. Yields rise as prices fall.
Despite progress on vaccinations, the pandemic remains another
risk for investors. India has experienced a surge in Covid-19 cases
in recent weeks after loosening restrictions. Highly contagious
variants that are now spreading around the globe are potentially
serving as an accelerant. The outbreak threatens to extend the
pandemic itself, driving world-wide numbers to new highs.
"This is a clear setback and adds significant uncertainty," said
Hugh Gimber, a strategist at J.P. Morgan Asset Management. "It is a
reminder that investors, throughout the course of this year, are
going to be dealing with this huge risk of the resurgence of
Futures of Brent crude oil, the international energy benchmark,
fell 0.7% to $65.65 a barrel as the Covid-19 crisis in India
threatened to sap demand for energy.
In corporate news, Albertsons tumbled 96 cents, or 5%, to $18.22
after the supermarket chain reported a quarterly loss and said it
expects sales to slow this year from 2020, when coronavirus
lockdowns prompted heavy demand for food from grocers.
In cryptocurrencies, bitcoin jumped nearly 11% to $53,297. The
digital currency has rebounded since falling below $50,000 last
week, though it is still down more than 15% from the all-time high
it reached earlier this month.
Overseas, the pan-continental Stoxx Europe 600 rose 0.3%. In
Asia, Japan's Nikkei 225 added 0.4%, while the Shanghai Composite
Index contracted almost 1%.
Write to Caitlin Ostroff at email@example.com and
Alexander Osipovich at firstname.lastname@example.org
(END) Dow Jones Newswires
April 26, 2021 17:39 ET (21:39 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.