Daily market review
The market indices closed mixed, with some negative performance in today's trading, despite Microsoft's 7.2% gain after reporting earnings. Although the major indices initially rose due to support from the mega-cap companies, they ultimately closed near the session lows. The negative trend was attributed to growth concerns, First Republic Bank's ongoing issues, and uncertainties regarding debt ceiling matters and the Fed's policy path. The disappointing guidance from companies like Texas Instruments and Norfolk Southern and the 0.4% decline in nondefense capital goods orders in March added to the slowdown concerns. However, individual companies such as Chipotle Mexican Grill and Boeing performed well in the earnings department. The market's overall tone was negative, as evidenced by the 1.0% decline in the Invesco S&P 500 Equal Weight ETF. In the bond market, Treasuries settled mixed, but the price action signaled a slowdown. The U.K.'s CMA said it will block Microsoft's acquisition of Activision Blizzard. As for economic data, nondefense capital goods orders excluding aircraft declined by 0.4% in March, and several notable companies are reporting earnings. Thursday's economic data will include Advance Q1 GDP, weekly Initial Claims, and March Pending Home Sales.
The 10-year Treasury note decreased slightly to 3.43%, while the NYSE had 966 advancing stocks and 1905 declining stocks with a trading volume of 853 million. The Nasdaq had 1785 advancing stocks and 2666 declining stocks with a trading volume of 5.3 billion.
The Information Technology industry performed well, while the Health Care, Utilities, Industrials, Energy, Materials, and Consumer Staples industries were weak.
The strength in Microsoft (MSFT) after announcing their earnings news had a positive impact on the market. However, the price movement of Treasuries continued to indicate concerns about economic growth. The ongoing fallout of First Republic Bank (FRC) also impacted the market. The positive earnings results had a muted response, which acted as a drag on investor sentiment.