Investors worry about economic uncertainty created by Biden’s elevated spending
UPDATED 7:36 AM PT – Tuesday, April 13, 2021
Major U.S. stock indices showed little movement amid thin trading volumes as investors await reports on corporate earnings.
There was a minor pullback on Wall Street Monday as investors took a rest after the Dow and the S&P 500 hit record highs last week. The Dow shed 55 points, the S&P 500 was basically flat and the NASDAQ lost 50 points.
Investors are moving with caution with earnings season set to begin.
“I think you’re seeing selling pressure on the market simply because investors are concerned about whether or not earnings will come in ahead of these revised estimates that have been set by Wall Street analysts,” stated Jacob Walthour, CEO of Blueprint Capital Advisors. “And let’s face it, the market has run a significant distance in a very short period of time, and so people are getting a little bit nervous and they’re wondering kind of what’s next in this market.”
There was a lot of corporate news to trade off of. For example, GameStop is reportedly looking to replace current CEO George Sherman and the board is reportedly already working with an executive headhunter on the CEO search.
This comes as GameStop is trying to transform from a struggling brick-and-mortar retailer into an eCommerce outfit. A GameStop spokesman declined to comment. Nonetheless, shares fell roughly 11 percent.
Another example is a warning from United Airlines. The air carrier said it expects first-quarter revenues to show a plunge of 66 percent, which is near the lower end of its prior forecast. United shares were down 4 percent.
Additionally, offered to buy Artificial Intelligence and speech technology company Nuance Communications for nearly $20 billion. Shares of Microsoft touched an all-time high while Nuance surged to a record high as well.