Skip to main content

Intuit Inc(INTU-Q)
NASDAQ

Today's Change
Real-Time Last Update Last Sale Cboe BZX Real-Time

Stocks Plummet as a Plunge in Technology Stocks Weighs on the Overall Market

Barchart - Tue Apr 26, 2022

What you need to know…

The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -2.81%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -2.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -3.87%.

U.S. stock indexes Tuesday sold off sharply, with the S&P 500, the Down Jines Industrials, and the Nasdaq 100 falling to 6-week lows.  A sell-off in technology stocks Tuesday weighed on the overall market.  Also, ramped up geopolitical risks in Europe undercut stocks after Russia said it would halt natural gas shipments to Poland and Bulgaria starting Wednesday for not paying for gas in rubles.  In addition, Russian Foreign Minister Lavrov warned that there’s a “serious” risk of nuclear war over Ukraine. 

U.S. stock indexes extended their losses in post-market trading Tuesday afternoon after quarterly earnings results from Alphabet, Microsoft, and Texas Instruments disappointed.

Lower T-note yields Tuesday were supportive for stocks after the 10-year T-note yield fell to a 1-1/2 week low of 2.732%.  Also, mostly stronger than expected Q1 U.S. corporate earnings results are bullish for stocks, with close to 80% of companies that have reported beating quarterly earnings estimates.  Tuesday’s U.S economic data was mixed for stocks.

U.S. Mar capital goods orders nondefense ex-aircraft & parts, a proxy for capital spending, rose +1.0% m/m, stronger than expectations of +0.5% m/m.

The U.S. Feb S&P CoreLogic composite-20 home price index rose a record +20.2% y/y, stronger than expectations of +19.2% y/y

The Conference Board U.S. Apr consumer confidence index unexpectedly fell -0.3 to 107.3, weaker than expectations of an increase to 108.2.

U.S. Mar new home sales fell -8.6% m/m to a 4-month low of 763,000, weaker than expectations of a decline to 768,000.

Today’s stock movers…

A slump in technology stocks Tuesday weighed on the overall market.  Tesla (TSLA) closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100. Also, Okta (OKTA), ASML Holding NV (ASML), and Advanced Micro Devices (AMD) closed down by more than -6%.  In addition, Nvidia (NVDA), Illumina (ILMN), Netflix (NFLX), and Intuit (INTU) closed down by more than -5%.

General Electric (GE) closed down more than -10% Tuesday after it said it sees full-year adjusted EPS at the low end of its forecasted $2.80-$3.50 range, weaker than the consensus of $3.24.

Universal Health Services (UHS) closed down more than -9% Tuesday after it reported Q1 adjusted EPS of $2.15, well below the consensus of $2.45. 

Invesco Ltd (IVZ) closed down more than -8% Tuesday after it reported Q1 adjusted net revenue of $1.25 billion, below the consensus of $1.28 billion.

Zions Bancorp (ZION) closed down more than -8% Tuesday after Raymond James downgraded the stock to market perform from strong buy. 

Sherwin-Williams (SHW) closed up more than +9% Tuesday to lead gainers in the S&P 500 after reporting Q1 net sales of $5.00 billion, above the consensus of $4.90 billion. 

Waste Management closed up more than +5% Tuesday after it reported Q1 operating revenue of $4.66 billion, above the consensus of $4.45 billion.

Valero Energy (VLO) closed up more than +4% Tuesday after reporting Q1 adjusted EPS of $2.31, well above the consensus of $1.66.

Corning (GLW) closed up more than +3% Tuesday after reporting Q1 core sales of $3.74 billion, stronger than the consensus of $3.56 billion.

Across the markets…

June 10-year T-notes (ZNM22) on Tuesday closed up by +14 ticks, and the 10-year T-note yield fell -3.6 bp to 2.784%.  Jun T-note prices Tuesday climbed to a 1-1/2 week high, and the 10-year T-note yield fell to a 1-1/2 week low of 2.722%.  A sell-off in stocks Tuesday fueled safe-haven buying of T-notes.  T-note prices also had carry-over support from a rally in 10-year German bunds Tuesday to a 1-1/2 week high.  Finally, a decline in inflation expectations supported gains in T-notes after the 10-year inflation breakeven rate fell to a 1-1/2 week low Tuesday at 2.837%.  T-notes maintained moderate gains Tuesday on strong demand for the Treasury’s $48 billion auction of 2-year T-notes that had a bid-to-cover ratio of 2.74, well above the 10-auction average of 2.55. 

Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.