Markets Right Now: Stocks end lower after early gain fades

Gladys Abbott
April 25, 2018

Alcoa tumbled 13.5 per cent and Arconic fell 5.2 per cent, making it the biggest percentage loser on the S&P. It was down as much as 619 earlier before paring some of its losses.

KEEPING SCORE: The S&P 500 index sank 45 points, or 1.7 percent, to 2,625 as of 3:40 p.m.

Advancing issues outnumbered decliners by a 1.24-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.

The yield on the 10-year Treasury reached 3 percent for the first time since January 2014.

Misfit toys: Hasbro said its revenue plunged 16 percent in the first quarter, a far bigger decline than Wall Street expected, as toymakers continue to struggle following the demise of Toys R Us. Heightened options activity ahead of Alphabet's report implied a 4.9 percent stock price swing in either direction by Friday. The Dow has lost 417 points during the current streak, compared with the 1,171-point drop during the streak ending March and the 128-point loss during the 4-day streak ending September 26.

The Philadelphia Semiconductor index.SOX was down 1.2 percent and was on track for its fourth straight session of declines on concerns of slowing smartphone demand. But the stock gave up those gains and finished with a loss of 6.2 percent at $144.44.

Walmart fell 1 percent after Bloomberg reported that the retailer might spend $12 billion to buy the majority of Indian e-commerce company FlipKart.

US stock index futures edged higher ahead of Tuesday's open, as nerves alleviated as the USA 10-year Treasury yield backed off from the 3 percent mark. Chemical companies and other materials makers could also see their profits affected as oil prices and other expenses rise.

In corporate earnings, 3M, Biogen, Caterpillar, Coca-Cola, Eli Lilly, Lockheed Martin, United Technologies, Verizon, Harley-Davidson, Restaurant Brands International, Amgen, Chubb, Capital One and Wynn Resorts are all set to publish their latest financial updates.

More news: Throw All Romaine Away, Washing Won't Do the Trick — CDC

Quarterly results are expected this week from 181 S&P 500 companies, including technology heavy-hitters Facebook Inc (FB.O), Microsoft Corp (MSFT.O), Inc (AMZN.O) and Intel Corp (INTC.O). It rose 0.4 percent to $68.64 a barrel in NY. The Nasdaq composite dropped 111 points, or 1.6 percent, to 7,018.

The 10-year Treasury is a proxy for interest rates and a predictor of the long-term outlook for the USA economy.

Expectations for this earnings season are high.

Stocks moved broadly higher in early trading Tuesday as a handful of solid company earnings reports put investors in a buying mood. Wholesale gasoline rose 1.3 percent to $2.12 a gallon.

METALS: Gold rose 0.7 percent to $1,333 an ounce.

Overseas: Britain's FTSE 100 rose 0.1 percent, as did Germany's DAX was steady. Investors have been selling Treasurys this month, pushing yields higher, amid expectations of rising inflation, which could prompt the Federal Reserve to tighten monetary policy pace.

SHIRE'S WILD RIDE: Drugmaker Shire rallied again as the company said it is considering a new offer from Japanese rival Takeda.

The S&P 500 index rose 9 points, or 0.4 percent, to 2,680. Tokyo's Nikkei 225 fell 0.3 percent and South Korea's Kospi shed 0.1 percent. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February.

Other reports by LeisureTravelAid

Discuss This Article