Market Overview

Dow drops more than 300 points led by Boeing and Nike, Nasdaq falls another 1.5%

Dow drops more than 300 points led by Boeing and Nike, Nasdaq falls another 1.5%

U.S. stocks fell for a second day on Tuesday as strong corporate earnings failed to boost a market already near record highs, while an alarming rise in global Covid cases raised concerns about the recovery. The Dow Jones Industrial Average fell 340 points as Boeing and Nike both dropped more than 4%. The S&P 500 lost nearly 1%, while the tech-heavy Nasdaq Composite dipped 1.5%.

Reopening plays such as airlines and cruise line operators led losses on Tuesday. United Airlines plunged 9% after the carrier reported its fifth consecutive quarterly loss and said that business and international travel recovery is still far off. American Airlines fell 6%, while Carnival, Norwegian Cruise Line and Royal Caribbean all traded about 4% lower. Procter & Gamble shares were flat even after the consumer giant reported quarterly earnings that beat expectations with pandemic home-care trends lingering and beauty sales picking up.

Johnson & Johnson shares gained 1% following better-than-expected earnings and revenue. The company also reported $100 million in first-quarter sales of its Covid-19 vaccine that’s on hold in the U.S. while health regulators investigate a rare blood-clotting issue. Another Dow component, Travelers Companies, rose slightly after quarterly results that topped Wall Street’s estimates. The company also raised its quarterly cash dividend and approved an additional $5 billion of share buybacks.

Tesla rebounded 1.7% after dropping more than 3% in the previous session as bitcoin — which makes up some of Tesla’s balance sheet— tanked over the weekend after hitting an all-time high of $64,841 Wednesday morning, according to data from Coin Metrics.

Dow drops more than 300 points led by Boeing and Nike, Nasdaq falls another 1.5%, CNBC, Apr 21

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