May the 4th be with you--because you’re going to need it after you look at your stock portfolio today.
Intraday Tuesday the Dow Jones dropped more than 200 points, while the S&P 500 lost 52 points. But the benchmark that suffered the worst plunge thus far today was the Nasdaq Composite, falling 3% 13,531.58 points.
Big Tech Leads the Meltdown
The Nasdaq Composite, which tracks many big tech companies, saw the biggest selloff. Big tech stocks have been volatile this year on fears of inflation and high valuation concerns--and that's what we're seeing this Tuesday.
Some big losers today included tech giants Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), Facebook (Nasdaq: FB) and Amazon (Nasdaq: AMZN), whose stocks dropped 4%, 2%, 3%, and 3%, respectively.
But stocks have been disastrous across the board today.
“The stock market is cautious,” Kristina Hooper, a chief global market strategist at Invesco, said in a Tuesday note, as cited by MarketWatch.
“After all, stocks have already rallied dramatically, and there are concerns about the unsustainability of the current very positive environment given that government debt is growing and higher taxes are expected. This caution is also borne of being monetary policy-dependent, because sticky inflation could be around the corner, and that might force the Fed to remove the punch bowl.”
Some Solid Earnings
Despite the big sell-off, there were some positive earnings reports today. Shares in Pfizer (NYSE: PFE) inched 32 cents higher intraday Tuesday after it posted revenues of $14.6 billion on adjusted earnings of 93 cents per share. Those figures were ahead of the FactSet consensus, which called for revenues of $13.4 billion on adjusted earnings of 77 cents a share. Plus, the biopharmaceutical giant said that it expects $26 billion in sales from its Covid-19 vaccine, up from the $15 billion it forecasted earlier this year. In addition, Pfizer expects to make 3 billion shots of its vaccine next year.
Another strong earnings report came from retail pharmacy chain CVS Health (NYSE: CVS), which posted revenues of $69.1 billion on adjusted earnings of $2.04 per share. The analyst consensus estimated that CVS would generate revenues of $68.4 billion on earnings of $1.73 per share. For the full year 2021, CVS now anticipates adjusted profit in the range of $7.56 and $7.68 per share. Shares in CVS rose 3% on the news.
U.S. Treasury Secretary Janet Yellen is making two appearances today: One in a forum hosted by The Atlantic magazine at 11 a.m Eastern and at a virtual conference hosted by The Wall Street Journal at 4 p.m, according to MarketWatch. Investors will want to pay close attention to her comments.