The major averages had a mixed day, with the Nasdaq and S&P 500 sliding and the Dow notching a modest gain. Earnings beats by Goldman Sachs, JPMorgan Chase and Wells Fargo supported the financials sector, but equity investors may have been keeping to the sidelines in anticipation of Thursday's retail sales report, which will be a good barometer of consumers' mood as the U.S. slowly emerges from pandemic mode.
ECONOMIC EVENTS: In the U.S., import prices climbed 1.2% in March and export prices surged 2.1%, both of which were much stronger than expected.
Meanwhile, the Federal Reserve said in its latest Beige Book that economic activity accelerated at a "moderate pace" from late February to early April, as consumer spending strengthened and reports on tourism were "more upbeat." In addition, the Fed said that price increases "accelerated slightly" since the last Beige Book, with employment growth picking up over the reporting period.
TOP NEWS: Shares of Moderna (MRNA) rose 6.9% as the company hosted its second annual Vaccines Day, with presentations "highlighting the advantages of mRNA vaccines." Last night, ahead of today's event, Moderna shared an update on the Phase 3 COVE study of its COVID-19 vaccine, mRNA-1273, stating that efficacy starting two weeks following the second dose and based on the updated adjudicated cases "remains consistent with prior updates." This includes greater than 90% efficacy against all cases of COVID-19, and greater than 95% against severe cases of COVID-19, with a median follow-up of approximately six months post dose two, Moderna said.
In earnings news, the headliners were a trio of big banks, which all beat expectations in terms of their headline results. JPMorgan (JPM), Goldman Sachs (GS) and Wells Fargo (WFC) each reported Q1 earnings and revenue that topped consensus forecasts, aided by reserve releases due to continued improvements in the economic environment.
In earnings news outside of the financial industry, Bed Bath & Beyond (BBBY) shares fell 12.2% after the home goods retailer reported mixed Q4 results and gave guidance.
In new issue news, Bitcoin services provider and marketplace operator Coinbase (COIN) made its public market debut via a direct listing on the Nasdaq exchange. Nasdaq determined a reference price of $250 and the stock opened at $381 per share. The shares climbed as high as $429 during the session, valuing the company at $112B, before dropping from there to close at $328.28.
Meanwhile, The Wall Street Journal reported that the U.S. Department of Justice has ramped up an antitrust investigation of American Airlines' (AAL) recent partnership with JetBlue (JBLU) and is concerned the agreement could lead to anticompetitive coordination and inflated fares at major hubs. Department antitrust officials had reservations about the pact before the recent change in presidential administration, but their scrutiny of the deal has stepped up since the beginning of the Biden administration, according to the Journal.
MAJOR MOVERS: Among the noteworthy gainers was Televisa (TV), which rose 23.5% in New York after agreeing to combine content and production assets with Univision. Also higher was Galectin Therapeutics (GALT), which gained 9% after announcing that a paper published in the peer-reviewed Journal for ImmunoTherapy of Cancer provided "further clinical evidence" that using belapectin in combination with pembrolizumab significantly enhances tumor response to immunotherapy in patients with advanced metastatic melanoma and head and neck squamous cell carcinoma.
Among the notable losers was Future Fintech (FTFT), which declined 15.5% after signing an equity agreement to acquire a cryptocurrency mining farm. Also lower was Stitch Fix (SFIX), which fell 5.3% after announcing CEO Katrina Lake will transition to the role of executive chairperson of the board and that the board will be appointing president Elizabeth Spaulding to the role of CEO.
INDEXES: The Dow rose 53.62, or 0.16%, to 33,730.89, the Nasdaq lost 138.26, or 0.99%, to 13,857.84, and the S&P 500 declined 16.93, or 0.41%, to 4,124.66.
Moderna
+10.62 (+7.10%)
Goldman Sachs
+7.91 (+2.42%)
JPMorgan
-2.81 (-1.82%)
Wells Fargo
+2.25 (+5.66%)
Coinbase
-53.37 (-14.01%)
American Airlines
-0.19 (-0.84%)
JetBlue
+0.055 (+0.26%)
Televisa
+2.37 (+23.42%)
Galectin Therapeutics
+0.18 (+8.29%)
Future FinTech
-0.79 (-15.86%)
Stitch Fix
-2.63 (-5.31%)
Bed Bath & Beyond
-3.375 (-12.10%)