Stock Market Today

Stock Market Today: Stocks Sag on Sleepy Monday (But the Alarm Is Set)

The Dow declined on a low-volume Monday, but the start of Q1 earnings season and the Coinbase offering should spice things up later this week.

The market stumbled out of the blocks this week, with the major indexes all logging modest declines on a Monday that was low on trading volume and slow on broader macro news.

Consider it the calm before the (potentially fruitful) storm.

The first-quarter earnings season kicks off in earnest later this week, and it could be a big one.

"The outstanding fourth-quarter earnings season we had in 2020 is a tough act to follow, but 2021's first quarter has the makings of another potentially great earnings season," say LPL Financial strategists Jeffrey Buchbinder and Ryan Detrick. "The reopening of the economy continues to move forward, and corporate America has done an excellent job managing through the pandemic. In fact, it won't take much of an upside surprise for year-over-year S&P 500 Index earnings growth to reach 30% this quarter."

For today, however, declines in the energy (-0.8%) and technology (-0.5%) sectors weighed on the wider market, including a 0.2% loss for the Dow, which closed at 33,745.

Sign up for Kiplinger's FREE Closing Bell e-letter: Our daily look at the stock market's moves, and what moves investors should make.

Other action in the stock market today:

  • The S&P 500 finished marginally lower to 4,127.
  • The Nasdaq Composite declined 0.4% to 13,850.
  • The small-cap Russell 2000 also fell 0.4% to finish at 2,233.
  • U.S. crude oil futures started the week higher, adding 38 cents, or 0.6%, to settle at $59.70 per barrel.
  • Gold futures fell $12.10, or 0.7%, to close at $1,732.70 an ounce.
  • The CBOE Volatility Index (VIX) jumped 2.2% to 17.05.
stock chart for 041221

YCharts

Where the Market's Making Sparks

But even on a yawner like Monday, there's plenty for investors to pay attention to.

For instance, Microsoft (MSFT, up marginally) advanced further into the health technology space by announcing a $16 billion all-cash deal for speech-recognition software company Nuance Communications (NUAN, +16.0%).

And an already firework-filled 2021 for semiconductor stocks became even more electric as Nvidia (NVDA, +5.6%) announced its first server CPUs – another shot across the bow of competitor Intel (INTC, -4.2%). The firm also says Q1 revenues are tracking above the $5.3 billion outlook it previously provided.

Also, a number of digital currencies headed higher ahead of Wednesday's public-market debut of Coinbase, which allows investors to buy and sell cryptocurrencies. That includes bitcoin, which at $60,068 is hovering near its all-time high of $61,712 set in March.

The offering is expected to further bolster individual and institutional interest – a key potential driver of bitcoin prices that we highlighted in our annual outlook.

If you want to learn more ahead of what should be a busy week not just for stocks, but for digital currencies, check out our primer that answers common questions about bitcoin. Or, have a listen to our recent conversation with Onramp Invest CEO Tyrone Ross, who provides his expert insight into what bitcoin can be for investors and consumers alike.

Kyle Woodley was long NVDA as of this writing.

Most Popular

Refunds for $10,200 Unemployment Tax Break to Begin This Month
Coronavirus and Your Money

Refunds for $10,200 Unemployment Tax Break to Begin This Month

The IRS will start issuing automatic refunds sometime in May to people eligible for the unemployment benefit tax exemption.
May 1, 2021
The Benefits of Working Longer
Empty Nesters

The Benefits of Working Longer

Delaying retirement for a couple of years—or even a few months—is the most effective way to improve your retirement security.
April 29, 2021
10 Dividend Growth Stocks You Can Count On
dividend stocks

10 Dividend Growth Stocks You Can Count On

What should investors prioritize in dividend growth stocks? A history of aggressive payout expansion, and the ability to generate enough cash to keep …
May 3, 2021

Recommended

Stock Market Today 7/23/20: Tech Stocks Take a Tumble
Markets

Stock Market Today 7/23/20: Tech Stocks Take a Tumble

An increase in weekly jobless benefits applications and profit-taking in tech stocks sent the major indices to steep declines Thursday.
July 24, 2020
Closing Bell 7/1/20: Nasdaq Hits New Highs to Start Q3
Markets

Closing Bell 7/1/20: Nasdaq Hits New Highs to Start Q3

The first day of 2020's second half kicked off with a mixed trading session that saw Amazon (AMZN) and Facebook (FB) help the Nasdaq to new highs.
July 2, 2020
Closing Bell 6/22/20: Big Tech Carries the Markets
stocks

Closing Bell 6/22/20: Big Tech Carries the Markets

Apple (AAPL) and Microsoft (MSFT) were at the forefront of a tech-led rally in the broader markets Monday.
June 22, 2020
Stock Market Today: Fed-Led Momentum Propels Dow Again
stocks

Stock Market Today: Fed-Led Momentum Propels Dow Again

Fed's bond backing, Powell's suggestion for more Congressional spending and hints at an infrastructure plan lifted stocks broadly Tuesday
June 16, 2020