Most stocks rise, but tech firms weigh on indexes
NEW YORK — Most U.S. stocks rose Wednesday, but indexes petered out to a mixed finish as momentum weakened after an encouraging start to what’s expected to be a strong earnings reporting season.
The S&P 500 index fell 16.93 points, or 0.4%, to 4,124.66, a day after returning to a record high. It flipped between small gains and losses several times through the day.
The Dow Jones Industrial Average rose 53.62 points, or 0.2%, to 33,730.89 after earlier in the day rising above its record set last week.
The Nasdaq composite lost an early gain and dropped 138.26, or 1%, to 13,857.84.
The market was held back by drops for several heavyweight tech stocks, including Apple and Amazon, but the majority of stocks within the S&P 500 rose. Smaller companies rallied amid growing optimism as covid-19 vaccines roll out and businesses reopen. The Russell 2000 index of small-cap stocks climbed 18.79, or 0.8%, to 2,247.72.
Shares of Coinbase Global, an exchange for bitcoin and other digital currencies, surged in its market debut, in a milestone moment for cryptocurrencies as they get embraced more by the mainstream. The company’s stock opened at $381 after the Nasdaq earlier gave it a $250 reference price. It quickly rallied toward $430 before closing at $328.28. At that price, investors say the company is worth more than $85 billion, more valuable than Nasdaq or Intercontinental Exchange, the owner of the New York Stock Exchange.
Interest in and prices for cryptocurrencies have been exploding recently as more companies and investors get involved. Coinbase turned a profit last year after more than reversing a $30.4 million loss from the year before, and it expects growth to continue because it sees the cryptoeconomy producing “a more fair, accessible, efficient, and transparent financial system for the internet age.”
Energy stocks were among the market’s strongest on expectations that a resurgent economy will burn more petroleum products. The International Energy Agency raised its forecast for oil demand this year, up by 230,000 barrels per day to 96.7 million. Separately, a U.S. government report showed that the amount of oil supplies in inventories fell sharply last week.
That helped benchmark U.S. crude oil rise $2.97 to settle at $63.15 per barrel. Brent crude, the international standard, climbed $2.91, to $66.58 a barrel. Within the S&P 500, Diamondback Energy was one of the top-performing stocks, with a gain of 6%. Occidental Petroleum rose 5.2%.
Much of the market’s focus in the coming weeks will be on earnings season, as companies line up to report how much profit they made during the first three months of 2021. Expectations are very high, and this may be the best quarter of earnings growth for S&P 500 companies in more than a decade.
Big banks are traditionally among the first companies to report, and Goldman Sachs, JPMorgan Chase and Wells Fargo all unveiled earnings for the first quarter that blew past analysts’ forecasts. Much of the surge was attributed to expectations for a rapidly improving economy, which allowed banks to free up reserves held in case loans went bad, as well as strong trading revenue.
The better-than-expected results didn’t give all the bank stocks a pop, though. Goldman Sachs rallied 2.3%, but JPMorgan Chase fell 1.9%. Wells Fargo jumped 5.5%, but only after swerving from an early-morning loss to a gain.