Here are five things you must know for Tuesday, April 20:
1. — Stock Futures Fall as Wall Street Weighs Earnings
Stock futures declined Tuesday as Wall Street looked to corporate earnings for indications on the strength of the post-pandemic recovery.
Investors also were monitoring the impact of accelerating COVID-19 infections in Asia and South America.
More than fifteen months in to a global pandemic that has killed more than 3.1 million people, new infections are on the rise in Asia and South America at a startling pace, with India recording the highest death toll on record and Brazil struggling to cope with a daily caseload of more than 3,000 new infections.
Contracts linked to the Dow Jones Industrial Average fell 127 points, S&P 500 futures dropped 14 points and Nasdaq futures were down 45 points.
Stocks declined Monday and the Dow and S&P 500 came off record highs as investors turned their attention to a busy week for earnings. The tech-heavy Nasdaq dropped 0.98%.
Eighty-one of the 500 members in the S&P 500 index are expected to report earnings this week. According to FactSet, Wall Street expects an increase in earnings of more than 24% for companies in the broad market index.
The yield on the 10-year U.S. Treasury rose early Tuesday to 1.626%.
2.– IBM’s Revenue Rise Gets Boost From Cloud Business
IBM was rising 3% in premarket trading Tuesday after posting better-than-expected first-quarter earnings and revenue and reiterating that it expects an increase in 2021 revenue.
Revenue of $17.7 billion rose 1% from a year earlier and topped analysts’ forecasts of $17.3 billion. Total cloud revenue in the quarter jumped 21% to $6.5 billion, while sales at IBM’s cloud and cognitive software unit rose nearly 4% to $5.4 billion.
“Strong performance this quarter in cloud, driven by increasing client adoption of our hybrid cloud platform, and growth in software and consulting enabled us to get off to a solid start for the year,” said CEO Arvind Krishna. “While we have more work to do, we are confident we can achieve full-year revenue growth and meet our adjusted free cash flow target in 2021.”
IBM said it expects adjusted free cash flow for the year of between $11 billion and $12 billion.
Krishna, who assumed the top job at IBM last April, has been pursuing efforts to streamline the company’s operations with a focus on cloud-based computing.
The stock gained 3% to $137.11 in premarket trading.
3. — Tuesday’s Calendar: Netflix and Johnson & Johnson Earnings
Earnings reports are expected Tuesday from Netflix (NFLX) – Get Report, Johnson & Johnson (JNJ) – Get Report, Procter & Gamble (PG) – Get Report, Abbott Labs (ABT) – Get Report, Lockheed Martin (LMT) – Get Report, Travelers Cos. (TRV) – Get Report, CSX (CSX) – Get Report and Philip Morris International (PM) – Get Report.
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The U.S. economic calendar is light this week until Thursday.
4. — Dogecoin Surges on April 20 or ‘Doge Day’
Dogecoin, the meme-based digital currency with a dog as its logo, was rising more than 10% higher early Tuesday to more than 41 cents and its market cap has pushed past $53 billion.
The hashtag #DogeDay has been trending on Twitter as fans looked to boost its price ahead of “Weed Day” or 4/20 (April 20). Tesla’s (TSLA) – Get Report Elon Musk has been one fan pushing for a Dogecoin record high on Tuesday.
Musk has called Dogecoin “the people’s crypto.” It rose more than 500% last week.
Ahead of 4/20, the marijuana high holiday, shares of the benchmark ETFMG Alternative Harvest ETF (MJ) – Get Report were rising 2.91% to $21.60.
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5. — Elon Musk Says Autopilot Wasn’t Enabled in Fatal Tesla Crash
Tesla (TSLA) – Get Report edged lower Monday after CEO Elon Musk said company checks showed a car involved in a fatal crash over the weekend in Texas didn’t have the Autopilot driver assistance system enabled.
Musk tweeted Monday afternoon that “Data logs recovered so far show Autopilot was not enabled & this car did not purchase FSD.”
Transport officials have begun probing the deadly weekend crash involving a Tesla Model S that reports said occurred while there was no driver at the wheel.
The National Highway Traffic Safety Administration investigation follows multiple media reports that suggested the weekend incident in involving a Model S sedan, which took the lives of two passengers following a fiery crash outside of Houston, occurred while the car was operating under autopilot.
“We are actively engaged with local law enforcement and Tesla to learn more about the details of the crash and will take appropriate steps when we have more information,” the agency said.
Tesla shares fell 1.28% to $705.45 in premarket trading Tuesday. The stock tumbled 3.4% on Monday.
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