The US stock market had a mixed day of trading on Monday, with the S&P 500 index managing to eke out a gain of 0.18% thanks to the support of the tech sector. However, there were some disappointing earnings reports from Johnson & Johnson and Goldman Sachs that left investors feeling cautious. Let's take a closer look at the market performance and what drove the gains and losses.
Headings:
- S&P 500 Index Rises With Tech Support
- Johnson & Johnson Reports Disappointing Earnings
- Goldman Sachs Falls Short of Expectations
- Tech Sector Boosts Nasdaq
- Other Market Movers
- What's Next for the US Stock Market?
S&P 500 Index Rises With Tech Support:
Despite the mixed day of trading, the S&P 500 index managed to close slightly higher, thanks to the strong performance of the tech sector. The tech-heavy Nasdaq Composite also closed higher, up 0.87%. Some of the biggest gainers in the tech sector included Apple, Amazon, and Microsoft, which rose 1.12%, 1.71%, and 1.26%, respectively. These gains helped offset losses in other sectors like healthcare and energy.
Johnson & Johnson Reports Disappointing Earnings:
Johnson & Johnson reported its first-quarter earnings on Tuesday, and the results were disappointing for investors. The company missed revenue estimates and lowered its earnings forecast for the full year. The pharmaceutical giant blamed the pandemic for weak demand for some of its products, including its COVID-19 vaccine. Shares of J&J fell 2.33% on the news.
Goldman Sachs Falls Short of Expectations:
Goldman Sachs also reported its first-quarter earnings on Tuesday, and the results fell short of expectations. The investment bank missed revenue estimates and reported lower-than-expected earnings per share. Goldman Sachs cited a slowdown in its trading and investment banking businesses as the main reasons for the weak results. Shares of Goldman Sachs fell 3.37% on the news.
Tech Sector Boosts Nasdaq:
While the tech sector helped lift the S&P 500 index, it was an even bigger driver of gains in the Nasdaq Composite. The tech-heavy index rose 0.87% on Monday, thanks to strong performances from some of its biggest components. In addition to Apple, Amazon, and Microsoft, other tech companies like Alphabet and Facebook also posted gains, rising 0.69% and 1.44%, respectively.
Other Market Movers:
Aside from the tech sector, there were some other notable movers in the market on Monday. Shares of Tesla rose 3.39% after reports that the company had sold over 185,000 electric vehicles in the first quarter. Meanwhile, shares of Coca-Cola fell 0.51% after the company reported weak sales in some of its key markets, including North America.
What's Next for the US Stock Market?
Looking ahead, investors will be closely watching earnings reports from other major companies in the coming weeks to get a sense of how the overall economy is recovering from the pandemic. The Federal Reserve's policy meeting, which starts on Tuesday, will also be closely watched for any signals about the central bank's plans for interest rates and its bond-buying program.https://ift.tt/zM8BQnO
