Day Traders Diary

4/27/21

The major averages closed mixed with the S&P 500 closing little changed near its record level on as investors braced for a big batch of tech earnings. The broad equity benchmark ended the day less than 0.1% lower at 4,186 after hitting a record high in the previous session. The Dow Jones Industrial Average also closed up just 3 points at 33,984. The tech-heavy Nasdaq Composite slid 48 points or 0.34% to 14,090.

Shares of Tesla fell 4.5% even after the electric carmaker posted record net income of $438 million. Tesla also beat Wall Street's earnings and revenue expectations handily, boosted by sales of bitcoin and regulatory credits. The shares have struggled this year, off by more than 20% from their record. Though the stock is still up more than 300% over the last 12 months.

UPS shares soared over 10% after earnings blew past Wall Street estimates. The company said first quarter revenue was up 27%.

The first-quarter earnings season kicked into high gear this week with key megacap tech companies such as Alphabet, Microsoft and AMD reporting after the bell Tuesday. Apple and Facebook earnings follow on Wednesday after the bell.

So far, with about a third of the S&P 500 having reported numbers, 84% of companies have turned in a positive earnings surprise, according to FactSet. However, stock moves have been relatively muted following the strong results with the market standing at record levels with high valuations.

On the data front, home prices in February registered the biggest gain in 15 years, rising 12% year over year and up from 11.2% in January, according to the S&P CoreLogic Case-Shiller home price index.

Meanwhile, consumer confidence climbed sharply to hit a pandemic high with The Conference Board's index jumping to 121.7, the highest since February 2020.

GameStop's stock jumped more than 5% after the video game retailer said it sold 3.5 million additional shares, raising $551 million to speed up the company's e-commerce transformation.

The S&P 500 edged higher to close at another record on Monday, while the tech-heavy Nasdaq Composite climbed 0.9% to hit its first fresh record close since Feb. 12.

The Federal Reserve kicks off its two-day policy meeting on Tuesday. The central bank is not expected to take any action, but economists expect it to defend its policy to let inflation run hot. The latest CNBC Fed Survey sees the central bank staying on hold and keeping its asset buying program in place at the same levels for the rest of 2021, despite growing concerns about an overheating economy.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.