Tech Shares Lead Major Stock Indexes Lower
By Anna Hirtenstein and Akane Otani
U.S. stocks slipped Monday, backing away from the records they
notched at the end of last week.
The Dow Jones Industrial Average fell 0.4%. The S&P 500 lost
0.5% and the Nasdaq Composite declined 1%.
Investors started the week on a somewhat cautious note. A string
of blue-chip companies are scheduled to report earnings this week
and will offer a view on businesses' expectations for the pace of
economic revival. Money managers are looking to gauge whether
stocks' high valuations are justified after the Dow and S&P 500
hit closing records last week.
"After a big move, you get a pause of breath and a bit of a
reassessment, " said Caroline Simmons, U.K. chief investment
officer at UBS Asset Management. "People are reassessing, waiting
for news flow that might indicate that growth and inflation remain
Technology and consumer-discretionary stocks led declines
Monday, weighing down major indexes.
Peloton fell 7.3% after a federal safety agency said over the
weekend that people with young children or pets shouldn't use the
connected-fitness company's treadmills.
Tesla declined 3.6% after two men died in a Tesla vehicle that
crashed into a tree Saturday.
Meanwhile, GameStop rose 6.8% after it said its chief executive
would step down.
On the earnings front, International Business Machines is
expected to report after the close. Other companies including
Procter & Gamble, Netflix and Lockheed Martin are scheduled to
post results later in the week.
"I expect the earnings picture is going to remain very buoyant
across the picture and for the momentum to stay very positive,"
said Fahad Kamal, chief investment officer of Kleinwort Hambros.
"As long as earnings meet what are very heightened expectations,
the rally can keep going."
In currency markets, the Russian ruble weakened 0.9% against the
dollar. U.S. officials warned there would be consequences if
opposition politician Alexei Navalny dies in prison. Calls for mass
protests in cities across Russia also mounted. The ruble has lost
nearly 3% of its value this year.
Bitcoin stabilized around $55,000 after plunging almost 12% over
the weekend, according to data from CoinDesk. Turkey's central bank
said Friday it would ban the use of cryptocurrencies as a form of
"The [cryptocurrency market] is really on edge right now," said
Joel Kruger, a currency strategist at LMAX. "There were concerns
over the weekend after Turkey came out with the news of major
regulatory restrictions coming into force."
Some traders were speculating that the U.S. Treasury could make
a similar decision, he said.
Overseas, the pan-continental Stoxx Europe 600 inched down 0.1%,
snapping a four-session winning streak.
In Asia, most major benchmarks ticked up. The Shanghai Composite
Index climbed 1.5% for its best day in over three weeks. Hong
Kong's Hang Seng added 0.5%. However, India's benchmark stock index
fell 1.8% as Covid-19 cases continued to climb.
Write to Anna Hirtenstein at email@example.com and Akane
Otani at firstname.lastname@example.org
(END) Dow Jones Newswires
April 19, 2021 16:20 ET (20:20 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.