Wall Street Close: Unimpressed by big tech earnings, Fed in focus
|- US markets remain elevated but stalled ahead of the key events.
- Google, Microsoft beat market consensus for EPS, revenues on the positive side.
- US data back hopes of faster economic recovery but mixed progress of vaccinations test the bulls.
- Chatters over US President Biden’s stimulus, covid couldn’t impress traders ahead of the FOMC.
Wall Street benchmarks portray the typical pre-Fed mood while portraying mild losses by the end of Tuesday’s North American session. In doing so, the risk barometers ignore upbeat US data and strong earnings from the key technology firms, not to forget doubts over US President Joe Biden’s stimulus and the coronavirus (COVID-19) woes.
Against this backdrop, Dow Jones Industrial Average (DJI30) barely budged, up 3.36 points of 0.01% to 33,964.93, whereas S&P 500 dropped 0.02% or 0.90 points to 4,186.72. Nasdaq marked 0.34% losses on the day, down 48.56 points, by closing the books near 14,090.
Microsoft’s Q3 2021 earnings mentioned revenues crossing $41.05 billion market expectations to $41.7 billion while the EPS rising past $1.78 estimates to $2.03. Google also followed the suit with the revenues rising to $55.31 billion and a $26.29 EPS during Q1 2021 versus forecasts of $51.61 billion and $15.64 respectively.
US Conference Board’s (CB) Consumer Confidence rallied to 121.7 in April, from 109.00 prior, while housing data flashed mixed signals. Even so, the American calendar suggests that the world’s largest economy is firm on the recovery path.
Elsewhere, US President Joe Biden is up for unveiling details of the “American Families Plan” and may drop estate tax to ease the passage, per the market chatters. However, doubts about the current infrastructure spending bill’s future dim the optimism over the hyped relief package.
Talking about covid, strong infections in India for the sixth consecutive day, above 300K, coupled with the third emergency in Japan, challenge the global recovery hopes and may weigh on the stocks. Additionally, the uneven progress of the COVID-19 jabbing adds to the market’s uncertainty.
Looking forward, investors may witness sluggish markets ahead of the Federal Reserve’s (Fed) interest rate decision. Even if the US central bank isn’t expected to alter the current policy, language in the statement and Chairman Jerome Powell’s press conference will be the key.
Read: Federal Reserve Preview: Will Powell power up the dollar? Three things to watch out for
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