Stock Market News For Apr 20, 2018
Zacks Investment Research | Apr 19, 2018 10:00PM ET
U.S. stock markets ended in the red on Thursday with all three major indexes declined broadly. Thursday’s earnings results failed to live up to investor’s expectations despite remain strong. Moreover, a spike in the yield of 10-year Treasury Note also panicked investors. However, the markets shed some of its losses in the final hour of trading following as the news surfaced that President Trump is not the subject of Special Counsel Robert Mueller's investigation.
The Dow Jones Industrial Average (DJI) closed at 24,664.89, declining 0.3%. The S&P 500 Index (INX) decreased 0.6% to close at 2,693.13. The Nasdaq Composite Index (IXIC) closed at 7,238.06, decreasing 0.8%. A total of 6.52 billion shares were traded on Thursday, lower than the last 20-session average of 6.98 billion shares. Decliners outnumbered advancers on the NYSE by 2.22 -to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 1.71 to -1 ratio. The CBOE VIX increased 2.3% and closed at 15.96.
How Did the Benchmarks Perform?
The Dow decreased 0.3% with 8 stocks of the 30-stock index closing in the green while 22 stocks traded in the red. Thursday’s decline pushed back the blue-chip index into the negative territory for the year.
The S&P 500 decreased 0.6% led by 2.9% decline of the Consumer Staple Select Sector SPDR (XLP) and a 1.7% decrease of Real Estate Select Sector SPDR (XLRE) partially offset by a 1.5% gain of the Financials Select Sector SPDR (XLF). Nine out of 11 sectors of the benchmark index ended in negative territory with four of them losing more than 1%. The index recorded 22 new 52-week highs and 16 new 52-week lows.
The tech-laden Nasdaq Composite also lost 0.8%. Weak financial outlook given by Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) had a domino effect on the entire technology sector, especially on the semiconductor stocks. The index recorded 87 new 52-week highs and 52 new 52-week lows.
Taiwan Semiconductor Pulls Down Technology Stocks
Taiwan Semiconductor, the largest contract chipmaker worldwide, stated that its second-quarter 2018 revenues will likely fall in the range of $7.8 billion to $7.9 billion, lagging the consensus estimate of $8.5 billion. Consequently, the stock price declined 5.6%.
The company reported mixed results in the first quarter of 2018. While the top line outpaced the Zacks Consensus Estimate, the bottom line lagged the same (Zacks Investment Research
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