US Stocks Close Mixed Tuesday 04/13 16:10
A choppy day of trading on Wall Street ended with indexes mixed Tuesday as a
drop in bond yields hurt bank stocks but helped big technology companies.
(AP) -- A choppy day of trading on Wall Street ended with indexes mixed
Tuesday as a drop in bond yields hurt bank stocks but helped big technology
The S&P 500 rose 0.3% after briefly slipping into the red in the early
going. The modest gain nudged the benchmark index to an all-time high.
Technology stocks and companies that rely on consumer spending helped lift the
broad market index. The gains were tempered by a pullback in banks, industrial
companies and other stocks.
Johnson & Johnson fell 1.3% after U.S. regulators recommended a pause in
using its single-dose COVID-19 vaccine to investigate reports of possibly
dangerous blood clots. Moderna, which also makes a COVID-19 vaccine, climbed
Worries about the potential loss of a vaccine option also pulled down
companies that are counting on pandemic restrictions easing, though the losses
eased by the end of the day. American Airlines slipped 1.5% and Delta Air Lines
The broader market has been mostly notching gains this month, reflecting
cautious optimism among investors that the economy will strengthen and
corporate profits will improve as the distribution of the COVID-19 vaccine
paves the way for businesses to more fully reopen. A pause in the distribution
of the Johnson & Johnson vaccine isn't going to derail that, analysts said.
"The response today has been very muted and isolated," said, Scott Knapp,
chief market strategist at CUNA Mutual Group. "Markets don't expect lockdowns.
The recovery may be delayed, but not a return to pandemic conditions."
The market's initial sell-off on the J&J news was "a bit of an
overreaction," said Jay Hatfield, CEO of Infrastructure Capital Management.
"We had a dress rehearsal for this last week because there was a huge
disruption to the J&J supply and nobody seemed to care," Hatfield said.
"Clearly, the recovery is not dependent on J&J significantly."
The S&P 500 rose 13.60 points to 4,141.59. The Dow Jones Industrial Average
fell 68.13 points, or 0.2%, to 33,677.27. The Nasdaq gained 146.10 points, or
1.1%, to 13,996.10. The divergence between the Dow and Nasdaq was largely due
to the fact the Dow has more bank stocks and also includes Johnson & Johnson,
while the Nasdaq is heavily weighted with technology companies.
Small company stocks also lost ground. The Russell 2000 index of smaller
companies gave up 4.86 points, or 0.2%, to 2,228.92.
The yield on the 10-year U.S. Treasury fell to to 1.62% from 1.67% the day
before. JPMorgan Chase fell 1.2% and Wells Fargo lost 2.4%.
Investors will get a chance to look over the books of the big banks starting
Wednesday, when JPMorgan Chase and Wells Fargo report their quarterly results.
Bank of America and Citigroup report their results on Thursday.
Big technology stocks, which have fallen when bond yields have risen, closed
solidly higher. Apple rose 2.4% and Microsoft gained 1%. Technology stocks rose
sharply in 2020 as investors bet that stay-at-home Americans would shift even
more to online buying and electronic entertainment to keep themselves busy in
Investors had little reaction to a report that showed U.S. consumer prices
increased a sharp 0.6% in March, the most since 2012, while inflation over the
past year rose a sizable 2.6%. The big gains are expected to be a temporary
blip and not a sign that long dormant inflation pressures were emerging. The
index rose 0.4% in February.
The Fed has been trying to reassure markets that any increase in inflation
would be temporary as the economy recovers.
"It looks like the market is starting to internalize that point of view,"
Traders in cryptocurrencies pushed up the price of Bitcoin above $63,000 for
the first time Tuesday. It rose 5.3% to $63,179.98, according to the tracking
site CoinDesk. The rally comes as cryptocurrency exchange and digital wallet
operator Coinbase is set to make its stock market debut Wednesday.