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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"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.
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.
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.
-
$177 Million AT&T Settlement Announced — Are You Eligible for a Payout?Millions of current and former AT&T customers may be eligible for payments after two 2024 data breaches exposed personal information.
-
Social Security Turns 90 — Five Important Things to KnowSocial Security has become a cornerstone of the American retirement system and works to keep over 16 million retirees above the poverty line. Here are five key facts about the program as it turns 90.
-
Stocks Slip Ahead of July CPI Report: Stock Market TodayThe latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market TodayThe main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
Stocks Rise After Trump-Powell Fed Tour: Stock Market TodayNvidia hit a new all-time high intraday, but another renowned semiconductor name and some less iconic stocks were bigger movers Friday.
