By Shreyashi Sanyal and Sruthi Shankar
(Reuters) – The S & P 500 and Nasdaq withdrew Tuesday from historic highs achieved in the previous session, after the Google-parent Alphabet (NASDAQ) actions collapsed after losing revenue and Apple advanced to its results.
The two main indexes surpassed the record levels on Monday, as investors benefited from a very positive profit season, benign inflation and progress in trade talks between the United States and China.
In spite of the fall, he and the Nasdaq have to mark their best monthly earnings since January.
Alphabet Inc.'s shares dropped by 8.28% and were close to its worst drop since January 2012, after the company also recorded the slowest growth in its income in three years.
The S & P communication services sector fell 2.68%, the most important among the 11 large S & P sectors and was at a pace with respect to the decline in the largest percentage in more than four months.
Apple Inc. (NASDAQ) fell 2.09% ahead of the results later, which will end the revenues of the FAANG shares of great growth.
"Undoubtedly, people are taking on some benefits of names like Apple, Google. Here, there might be some" maximum "mentality, considering how indexes are at record levels, people tend to be a bit cautious," he said. said Jeremy Bryan, portfolio manager of Gradient Investments. to Arden Hills, Minnesota.
"Companies of large quantities have generally denounced more than expected numbers, but not those that would accelerate concentration."
The limitation of the losses was Chevron Corp. (NYSE 🙂 The company's shares increased 2.22% after Warwick Buffett's Berkshire Hathaway (NYSE 🙂 Inc put the $ 10 billion behind Occidental Petroleum (the NYSE offer: ) Corp for the smallest rival Anadarko Petroleum Corp (NYSE 🙂 as it tries to watch Chevron's competition.
On a great day for healthcare, Pfizer Inc. (NYSE 🙂 added 3.26% and Merck & Co Inc rose 2.10% after drug manufacturers beat quarterly earnings estimates.
With more than half of the reports of the S & P 500 companies, now analysts expect a 0.7% increase in first-quarter earnings, a marked investment of the 2% drop estimated at the beginning of the month, according to data from Refinement
General Electric (NYSE 🙂 Co earned 3.03% after the profit of the first quarter of the industrial conglomerate increased and lost less money than expected.
Mastercard Inc (NYSE 🙂 rose 2.12% to a record after the card company exceeded its quarterly earnings estimates.
At 12:50 a.m. ET the Dow dropped 40.87 points, or 0.15%, to 26.513.52. The S & P 500 dropped 7.37 points, 0.25%, to 2,935.66 and dropped 73.16 points, or 0.90%, to 8,088.69.
Perrigo Co (NYSE 🙂 Plc slid 8.38%, most of the S & P 500 companies, after a revised tax authorities announcement proposed additional responsibility.
Investors will also pay close attention to the next two rounds of trade negotiations between the United States and China. US Treasury Secretary Steven Mnuchin said he expects to "make substantial progress" with Chinese negotiators.
The two-day meeting of the Fed, which will begin on Tuesday, will also be at the center of advice on the direction of interest rates.
The declining problems exceeded the number advanced for a ratio of 1.12 to 1 in the NYSE and for a ratio of 1.97 to 1 in the Nasdaq.
The S & P index recorded 36 new 52-week highs and did not present a new minimum, while the Nasdaq registered 64 new highs and 36 new ones.