Wednesday April 27th


Stocks attempt rebound after Nasdaq’s biggest drop since 2020 as Dow futures gain more than 100 points

U.S. stock index futures bounced Wednesday as the market attempted to recover from April’s technology-led sell-off a day after the Nasdaq Composite posted a new low for the year. Futures tied to the Dow Jones Industrial Average rose about 170 points, or 0.5%. S&P 500 futures gained 0.1%. Nasdaq 100 futures were marginally lower, giving up gains after being higher earlier Wednesday morning. “We remain cautious on rallies here,” BTIG’s Jonathan Krinsky said in a note to clients. “There still hasn’t been a full-scale washout, in our view, and trends remain to the downside. This means small rallies don’t do much other than alleviate short-term oversold conditions.” Microsoft’s shares jumped more than 3% in premarket trading after the company beat analyst expectations on the top and bottom lines. The company also issued forward revenue guidance exceeding analyst forecasts. However, Google parent Alphabet’s earnings results missed consensus estimates. Management warned on the conference call of another potentially weak quarter ahead. Alphabet shares fell about 4% premarket. “We’re trying to find a place of stability,” Kari Firestone, chairman and CEO of Aureus Asset Management, told CNBC’s “Squawk Box.” “We need to see a few more names come in with really strong, reliable and sustainable earnings so investors can get back on board.” The tech-heavy Nasdaq Composite has dropped further into bear market territory, losing 3.95% on Tuesday and hitting a fresh low for the year. That was its biggest daily loss since September 2020. The index is now sitting now roughly 23% off its high. The S&P 500 on Tuesday lost 2.8% for its worst performance since March and closed below a key support level in 4200. The Dow Jones Industrial Average shed 809.28 points, or 2.4%. In April, the S&P 500 is down 7.8%, the Nasdaq has lost 12.2%, and the Dow has declined 4.2%. “The confluence of persistent inflation, Fed tightening, the war in Ukraine, and China’s zero-Covid policy lockdowns has manifested in tenacious headwinds for investors in April,” Art Hogan, National Securities chief market strategist, said. Meanwhile, shares of Robinhood shed about 4% in premarket trading Wednesday after the retail brokerage said it is cutting back on staff. The company cited “duplicate roles and job functions” after its rapid expansion last year. Boeing saw shares fall 4% in early morning trading after an earnings miss. Facebook parent Meta is set to report earnings Wednesday after the bell, with Apple and Amazon reporting earnings Thursday. Investors will be watching to see if tech companies’ results prove the intense selling in April has been misplaced. Shares in Asia-Pacific were mixed on Wednesday as mainland Chinese stocks bounced back after days of losses. The Shanghai Composite gained 2.49% to close at 2,958.28 while the Shenzhen Component soared 4.372% to 10,652.90. The CSI 300, which tracks the largest mainland-listed stocks, rose 2.94% to 3,895.54. Hong Kong’s Hang Seng index rose about 0.2%, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan declined 1.17% on the day to 26,386.63 while the Topix index dropped 0.94% to 1,860.76. South Korea’s Kospi shed 1.1%, closing at 2,639.06. Oil prices turned lower during morning trading on Wall Street despite simmering geopolitical tensions as Russia cut gas supplies to Poland, while hopes of Chinese economic stimulus buoyed the demand outlook. Brent crude futures slid 45 cents, or 0.4%, to $104.54 per barrel. U.S. West Texas Intermediate crude futures declined 61 cents, or 0.6%, to $101.09. Gold prices fell on Wednesday as the dollar consolidated at its highest level in more than two years and pressured demand for greenback-priced bullion. Spot gold was down 0.4% at $1,898.48 per ounce, as of 0353 GMT. U.S. gold futures slid 0.3% to $1,899.00.