Stock market news live updates: Stocks dip, tech shares renew declines as investors eye more earnings
Added 05-04-21 11:04:02am EST - “Stocks fell Tuesday after a mixed session a day earlier, with technology stocks leading the way lower as investors awaited the next set of corporate earnings results.” - News.yahoo.com
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Stocks fell Tuesday after a mixed session a day earlier, with technology stocks leading the way lower as investors awaited the next set of corporate earnings results.
The S&P 500 dropped more than 1%, with the index trading off its all-time highs. The Dow dipped, while the Nasdaq underperformed with a drop of 2% as technology and growth shares added to recent losses.
Investors on Tuesday will receive quarterly reports from companies including Lyft (LYFT) and Virgin Galactic Holdings (SPCE). Overall, corporate results so far have handily exceeded estimates, with 85% of the S&P 500 companies that reported having topped expectations by more than 22.1% in aggregate, according to an analysis from Credit Suisse analyst Jonathan Golub.
These strong results, however, have been met with just a shrug by Wall Street, with many companies not seeing their stocks pop even after posting estimates-topping results. Many pundit chalked this up to the already-elevated expectations heading into earnings season, with investors primed to see a rebound in corporate profits during the post-pandemic economic recovery.
"The numbers were good but Wall Street response was neutral at best. When the best earnings growth since 2010 spawns a yawn it's pretty clear that perfection is priced in," Hilary Kramer, chief investment officer for Kramer Capital Research, wrote in an email Monday. "While there's no seasonal sell signal flashing, there's no immediate reason to buy either. This is a great opportunity to review your positions, make any adjustments and then retreat to the sidelines for the next few months."
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