US stocks rise lower as investors rise in a deluge of earnings

What drives the market?

Analysts say earnings reports, which are off to a good start to the quarter, will remain under scrutiny as investors measure the strength of the economic recovery from the COVID-19 pandemic. The guidance of companies on the outlook for the coming year may be even more important in determining the market direction.

“Corporate prospects may indicate whether the rise from last year’s low may continue,” Charalambos Pissouros, senior market analyst at JFD Group, said in a note.

Read: Why can it still go early in the stock market reflection trading?

“In our opinion, with most major central banks indicating that any inflation rises this year are likely to be temporary, and that they are committed to keeping their monetary policy extra loose, we believe that there is even a disappointment. decent opportunity for equities to return and move further north, ”he said.

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Analysts have said that a takeover in new COVID-19 cases, even if the vaccine explodes, puts a damper on sentiment. The US averaged 67,175 new cases a day last week, up 4% from the average two weeks ago. According to the Washington Post, the global new case reached nearly a record high of more than 750,000 on Sunday and Monday, as India and Brazil remain a hotspot.

See: Why the rise in COVID-19 cases Morgan Stanley holds assets in a risky way

“Concerns are mounting that the spread of covides outside the U.S. could hamper global economic recovery and abandon the leadership of U.S. companies as they report – especially multinational corporations,” said Fiona Cincotta, senior financial analyst at City Index.

Which companies are in focus?

• Apple Inc.
  AAPL,
  -1.10%
  Tuesday is expected to provide an annual update to high-end iPads, along with other new products, and introduce a paid subscription option in its podcast app when it holds an event in New York. Apple shares rose 0.1%.

• Shares of International Business Machines Corp.
  IBM,
  + 4.05%
  rose 4% after the tech giant grabbed Wall Street’s estimate with a surprising increase in revenue, which achieved a four-quarter streak of declining sales.

• United Airlines Holdings Inc.
  UAL,
  -9.03%
  lost more than $ 1.3 billion in the first three months of 2021, but executives said an adjusted cash flow company is positive, promising that new international routes to countries that allow vaccinated travelers will help the airline deal with the devastation of to repair the COVID-19. pandemic. Shares fell more than 7%.

• Johnson & Johnson
  JNJ,
  + 2.73%
  OnTuesday reported first-quarter earnings and sales that exceeded expectations, citing strength in its pharmaceutical business and the continued recovery of medical devices. Shares rose 1.4%.

• Shares of Abbott Laboratories
  ABT,
  -4.29%
  fell by 4%, despite the company’s results exceeding earnings expectations during a quarter in which sales of its COVID-19 tests accounted for 20% of total revenue.

• Shares of Procter & Gamble Co.
  PG,
  + 1.17%
  fell 0.4% after the consumer goods manufacturer reported fiscal earnings in the third quarter that exceeded estimates, saying it would raise prices on certain product categories.

• Shares of Kansas City Southern
  KSU,
  + 16.06%
  rose 15% after The Wall Street Journal reported Canadian National Railway Co.
  CNI,
  -6.38%

  CNR,
  -6.10%
  was planning to buy out about $ 30 billion for the railway operator, which will be the highest Canadian Pacific Railway Ltd.’s
  CP,
  -1.82%

  CP,
  -1.46%
  previously agreed on buyout bid.

• Shares of Philip Morris International Inc. PM rose 0.6% after the cigarette seller reported profit and revenue in the first quarter, beating expectations as growth in heated tobacco units helped offset the decline in cigarette shipments.

See: Tobacco supplies run out after Biden administration may need nicotine savings

What are other markets doing?

• The yield on the ten-year treasury note BX: TMUBMUSD10Y
  dropped by 0.5 basis point to 1.589% as the bond market remained in consolidation mode after a recent short-lived rally dropped returns from the 14-month high. Yields and bond prices are moving in opposite directions.

• The ICE US Dollar Index DXY,
  + 0.06%,
  a measure of the currency against a basket of six major competitors was flat.

• Oil futures have risen higher, with the US benchmark CLM21,
  -1.56%
  0.3% higher at $ 63.63 a barrel.

• Gold futures GC00,
  + 0.48%
  erased early weakness to move higher, up 0.4% to $ 1,777 per ounce.

• In Europe, the Stoxx 600 is SXXP,
  -1.90%
  and London’s FTSE 100 UKX,
  -2.00%
  it each decreased by 1.5%.

• In Asia, the Hong Kong Hang Seng Index HSI,
  + 0.10%
  increased by 0.1%, while the Shanghai Composite SHCOMP,
  -0.13%
  decreased by 0.1% and the Japanese Nikkei 225 NIK,
  -1.97%
  it decreased by 2%.