Stock market today: Dow drops 809 points as Q1 earnings roll in
US stocks opened the day in negative territory and losses accelerated as the session progressed.
Earnings remained the focus and many of today’s reactions were negative. General Electric (GE), for example, fell 10.3% after its results. As the industrial conglomerate beat highs and lows in the first quarter, CEO Lawrence Culp warned that the company was “tending down” its full-year guidance as it continued “to face to inflation and other evolving pressures”.
Jet Blue Airways (JBLU), meanwhile, lost 11.4% after the airline’s plans to reduce near-term capacity growth offset a weaker-than-expected loss in the first quarter. JBLU’s post-earnings decline put pressure on other airlines’ stocks, with Alaska Air Group (ALK, -4.6%), South West Airlines (LUV, -3.0%) and Delta Airlines (DAL, -3.2%) all ending significantly lower.
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The sale was widespread, with consumer discretionary (-5.1%) and Technology (-3.7%) the two hardest hit sectors. Alone energy gained ground, adding 0.1% as U.S. crude futures climbed 3.2% to $101.70 a barrel.
At the close, the Nasdaq Compound was down 4.0% at 12,490 – its worst day since September 2020 – the S&P 500 Index was down 2.8% to 4,175 and the Dow Jones Industrial Average was 2.4% lower at 33,240.
Other news on the stock market today:
- Small cap Russell 2000 returned 3.3% to 1,890.
- Gold Futures Contracts gained 0.4% to settle at $1,904.10 an ounce.
- Bitcoin fell 5.9% to $37,918.63. (Bitcoin trades 24 hours a day; prices shown here are as of 4 p.m.) “Bitcoin had tentatively climbed back above the $40,000 level as Wall Street grew more bullish on the long-term outlook for cryptocurrencies after reports that Fidelity Investments would clear Bitcoin in 401(k)s,” says Edward Moya, senior market strategist at currency data provider OANDA. “Bitcoin reversed lower as risk aversion returned to Wall Street; Russia’s suspension of gas supplies to Poland sent risky assets, including Bitcoin, down sharply.”
- Sherwin-Williams (SHW) jumped 9.4% after the paints and coatings retailer reported adjusted earnings of $1.61 a share and first-quarter revenue of $5 billion, two figures above analysts’ expectations. SHW also reaffirmed its full-year guidance for adjusted earnings of $9.25 to $9.65 per share. “Our team delivered results in line with our expectations in an environment characterized by strong demand, continued cost inflation and unstable raw material availability which improved significantly in the final weeks of the quarter,” said John Morikis, CEO of Sherwin-Williams, in the company’s earnings release.
- United Parcel Service (UPS) fell 3.5% after the delivery giant reported earnings. In the first quarter, UPS posted adjusted earnings of $3.05 per share and revenue of $24.4 billion, beating consensus estimates. The company also reiterated its full-year guidance, although CEO Carol Tome warned that we likely won’t see the same kind of e-commerce growth seen during the pandemic in the future. Argus Research analyst John Eade (Buy) said the stock’s weakness represents a “buying opportunity” and the company “remains well positioned to benefit from a number of positive trends.” .
What Wall Street says about social media stocks
A noticeable decline in today’s trading: Twitter (TWTR). Shares fell 3.9% to $49.68 – a day after the company’s board approved Elon Musk’s takeover of the platform for $44 billion, or $54.20 per share .
The news that the CEO of Tesla (TSLA) is taking TWTR private has narrowed the scope for social media actions, but analysts are still optimistic about the few major players left.
Case in point: S&P Global Market Intelligence sets analysts’ average price target for Facebook’s parent Meta Platforms (FB) — which joins Twitter on this week’s tech-focused earnings calendar — at $315.51, which which implies a potential upside of 44% from current levels.
Today, we take a closer look at the social media stocks to watch after Twitter and break down why Wall Street pros are so bullish on the group. Looked.