A sea of red washed across screens soon after the open as investors put cash on the sidelines ahead of results after the close from Apple and Microsoft. Risk-taking is limited ahead of Jerome Powell and the Fed announcement on Wednesday. VIX and yields rise slightly as does the dollar as a result of risk-off themes. The Nasdaq is leading indices lower down 0.5% while the S&P 500 and Dow are down a modest 0.2%.
Sectors: Oil (XLE) is up 0.6% on the back of some strong earnings from BP in particular. Industrial (XLI) is also up 0.5%. Tech (XLK) and Health (XLV) are both down 0.5%.
Selected stocks: GME +6%, AMC +4%, CCIV -3%, TSLA -4%, AAPL flat, UPS +11%, FedEx +6%, XPEV -4%, MMM -3%.
Here is what you need to know on Tuesday, April 27:
Equity and practically all financial markets are treading water ahead of a slew of earnings releases after the close and the Fed on Wednesday. Tuesday sees the big beasts Alphabet (GOOGL) and Microsoft (MSFT) kick-off the big tech earnings season after the close.
There will probably be more action and volume in the aftermarket than during. The Fed is nothing if not accommodative and is unlikely to spring any surprises on equity bulls. Monday saw a broad risk-on rally across small-cap and retail interest stocks, with GME, AMC and the usual band of brothers rallying by up to 13%.
GME did a share raise but still saw its shares spike 12%, this company just keeps on knocking normal financial rules on its head. Speaking of financial rules, the coordinated money printing by global central banks (CBs) continues as the Bank of Japan commits to keep printing, pumping, whatever term you wish. The only positive is that all the major CBs are at it, meaning everyone is devaluing at the same time. Hence, this is the main argument for Gold and Bitcoin.
Bitcoin steadies nicely after more wobbles and has retaken $55,000. Gold and the dollar are little changed, while VIX and yields also await more guidance from the Fed doves.
European markets are trading close to flat: EuroStoxx is -0.1%, FTSE also -0.1%, and Dax is -0.4%.
US futures are following the general wait-and-see approach and are all flat.
Wall Street top news
US Redbook: 13.9% versus prior 13.5%.
US House Price Index rises 12.2% YoY.
BOJ says it will likely not achieve the 2% inflation target, likely to remain below 2% for years to come. Keep on printing!
The EU could target Apple (AAPL) with an anti-competitive ruling this week, according to the FT.
Apple (AAPL) launched iOS14.5, which has new privacy controls that may hurt Facebook's (FB) ability to target ads directly.
Tesla (TSLA) beats on EPS, but revenue is boosted by environmental credits and Bitcoin sales, not enough car sales. Shares down 2% premarket. see more.
AMD to report earnings after the close on Tuesday. see preview.
GameStop (GME) raises $551 million in what is assumed to be a dilutive share sale, but the stock rallies 12%.
UPS earnings beat estimates, shares up 7% premarket.
Eli Lilly (LLY) earnings miss estimates, shares drop 3% premarket.
General Electric (GE) earnings miss on revenue, shares down 3% premarket.
3M (MMM) beats on EPS and revenue reaffirms guidance, but shares drop 1.5% premarket.
BP profits rose sharply due to higher oil prices and revenue from gas trading. Announced buyback and dividend levels could be restored to pre-pandemic levels by the end of 2022.
UBS says it took a $774 million loss from Archegos.
Novartis sales dry up as no cold and flu due to mask-wearing and social distancing.
Toyota is to acquire Lyft's (LYFT) self-driving technology for $550 million.
Jet Blue (JBLU) reported a lower than expected loss, shares up 1% premarket.
Hasbro (HAS) earnings beat estimates, shares had been up 3% in the premarket but are now flat as the conference call progresses.
Polaris (PII) earnings beat estimates on EPS and revenue, and the company raised full-year guidance. Share though fell 5% in premarket.
Ups and downs
GameStop (GME): Telsey reiterates as underperform.
Coinbase (COIN): Bernstein initiates as market perform.
Apple (AAPL): Bank of America reiterates buy rating.
Disney (DIS): Goldman Sachs reiterates as a top pick.
Amazon (AMZN): Bank of America reiterates buy rating.
UPS: Bernenberg upgrades.
LYFT: BTIG raises price target, Needham initiates as a hold.
UBER: Needham initiates as a buy.
Tesla (TSLA): Goldman raises price target.
Economic releases
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