(Bloomberg) — Wall Street’s enthusiasm for stocks faded after a four-day advance that drove the market to its longest winning run since March.
Most Read from Bloomberg
Equities retreated, with the S&P 500 pushing away from the 5,200 mark that it briefly touched this week. Tesla Inc. and Nvidia Corp. led losses in megacaps. Intel Corp. slumped after the chipmaker weakened its revenue outlook after a US ban on chip exports to Huawei Technologies Co. Uber Technologies Inc. tumbled on disappointing gross bookings.
Lack of conviction among investors to buy into the recent bounce in US stocks shows the market is far from turning fully bullish, say Citigroup Inc. strategists. The recent unwind of short positions has left the S&P 500 close to one-sided net long, but investors appear hesitant to add to the existing bullish positions, a team led by Chris Montagu wrote in a note.
“Flows tell a story of limited enthusiasm with a trickle of new long positions and only marginal increase in risk appetite,” Montagu said.
The S&P 500 dropped to around 5,170. Treasury 10-year yields advanced three basis points to 4.48%. That’s ahead of a $42 billion US auction of the bonds on Wednesday.
Corporate Highlights:
-
Lyft Inc. reported first-quarter results and financial guidance that beat investors’ expectations, a sign of the company’s ability to retain and attract new riders in the US and Canada.
-
Rivian Automotive Inc. fell short of Wall Street’s earnings expectations to start the year as the automaker works to revamp its manufacturing operations and boost output of electric vehicles.
-
Chinese iPhone shipments jumped about 12% in March after Apple Inc. and its retailers slashed prices, official data showed, suggesting efforts to arrest an accelerating decline in sales are yielding early results.
-
Reddit Inc. jumped as improvements to the social-media platform’s advertising system helped push quarterly sales higher than expected in its first results as a public company.
-
Shopify Inc. tumbled after the Canadian e-commerce company reported a surprise net loss in the first quarter after the sale of its logistics business last year.
-
Brookfield Asset Management reported its first quarterly decline in profit since it spun out of its parent company amid a drop in fees from some permanent capital vehicles.
Key events this week:
-
Bank of Japan issues summary of opinions from April policy meeting, Thursday
-
China trade, Thursday
-
UK BOE rate decision, Thursday
-
US initial jobless claims, Thursday
-
UK industrial production, GDP, Friday
-
ECB publishes account of April policy meeting, Friday
-
BOE Chief Economist Huw Pill speaks, Friday
-
US University of Michigan consumer sentiment, Friday
-
Chicago Fed President Austan Goolsbee speaks, Friday
Some of the main moves in markets:
Stocks
-
The S&P 500 fell 0.4% as of 9:30 a.m. New York time
-
The Nasdaq 100 fell 0.5%
-
The Dow Jones Industrial Average fell 0.1%
-
The Stoxx Europe 600 rose 0.1%
-
The MSCI World index fell 0.5%
Currencies
-
The Bloomberg Dollar Spot Index rose 0.2%
-
The euro was little changed at $1.0750
-
The British pound fell 0.2% to $1.2478
-
The Japanese yen fell 0.6% to 155.57 per dollar
Cryptocurrencies
-
Bitcoin fell 1.5% to $62,041.14
-
Ether fell 1.3% to $3,008.44
Bonds
-
The yield on 10-year Treasuries advanced three basis points to 4.48%
-
Germany’s 10-year yield advanced five basis points to 2.47%
-
Britain’s 10-year yield advanced two basis points to 4.14%
Commodities
-
West Texas Intermediate crude fell 1% to $77.63 a barrel
-
Spot gold fell 0.2% to $2,309.77 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Farah Elbahrawy.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
