US stocks tend to fall as economic data points to early spring growth and a slight rise in inflation

The session saw the public list of crypto exchange Coinbase Global COIN,
+ 31.31%

How to trade in stock benchmarking?

• The Dow Jones Industrial Average DJIA,
  + 0.16%
  rose 85 points, or 0.3%, to 33,763, after reaching an intraday record of 33,911.25.

• S&P 500 SPX,
  -0.41%
  fell 14 points, or 0.3%, to 4,127, after turning negative

• Nasdaq Composite COMP,
  -0.99%
  slipped 126 points, or 0.9%, to 13,869.

• The Russell 2000 RUT,
  + 0.84%
  was up 1.2%.

On Tuesdays, the Dow DJIA,
+ 0.16%
fell 68.13 points to finish at 33,677.27, down 0.2%. The S&P 500 SPX,
-0.41%
climbed 13.60 points and closed 0.3% to a record of 4,141.59, the 21st of the year. the Nasdaq Composite Index COMP,
-0.99%
rose 146.10 points, or 1.1%, to finish at 13,996.10, only 0.71% from the record set on Feb. 12. The Nasdaq-100 index NDX,
-1.31%
also finished on a record on Tuesday.

What drives the market?

Stock prices tend to trade lower on Wednesday, after the Federal Reserve’s Beige Book survey of economic activity pointed to a “moderate pace” of accelerating US economic activity at the start of the year, as well as a slight rise in US economic activity. inflation.

The Beige Book survey also pointed to advances in vaccination as a boost to the economic outlook.

The report comes as investors scrutinized JPMorgan Chase JPM’s first quarter results,
-1.87%
Goldman Sachs Group GS,
+ 2.34%
and Wells Fargo & Co. WFC,
+ 5.53%
Wednesday to gauge what rising profits at several of the country’s financial powerhouses could mean for the broader economy.

All three of the major US financial institutions showed rising profits and a reduction in reserves, or the buffer banks being set aside for possible losses from acidifying loans. The Financial Select Sector SPDR Fund XLF,
+ 0.60%
tracking the performance of US banks rose 0.9%.

“We’re getting a sense of what’s to come,” said Yung-Yu Ma, BMO Wealth Management’s chief investment strategist, of the increased profits and gains of major banks. “We think this will pass for bank revenues and it is something we think will likely last for the rest of this year.”

Ma also thinks there is a lot of economic momentum behind earnings in the broader corporate landscape, but will tune in closely when analysts ask for clues about “which companies have pricing power.”

“It will be wrong about the economy,” he told MarketWatch.

Also in focus Wednesday is the direct listing of Coinbase, the largest US crypto exchange, on the Nasdaq. Shares opened at $ 381 before moving closer to $ 311.

“I knew Coinbase was going to be a big event,” said Anthony Denier, CEO of Webull, a trading platform popular with individual investors. “But I think everyone is surprised by how it has been taken over [the focus] from the market, ”he said. “With a retail brokerage, my clients are currently fully focused on Coinbase.”

And while bank stocks have been out of focus on its traders for a while, Denier said early quarterly results point to a “celebration” for major banks, thanks to the surge in IPOs, SPACs and other capital market activity during the pandemic.

“The first quarter is a story that is very much about high expectations. So far, companies here are delivering aggregated results, ”Michael Reynolds, Investment Strategy Officer at Glenmede Trust told MarketWatch, although he warned that only a few companies had reported.

Meanwhile, Federal Reserve Chairman Jerome Powell suggested on Wednesday that the Fed follow the same road map it developed in 2013 and 2014 once it decides to reverse its asset purchase program, meaning a cut in purchases. assets would arrive ‘well before’ interest. rise, during a speech in the Washington Economic Club.

Brett Ewing, chief market strategist at First Franklin Financial Services, said market Powell’s overall message was still to expect the Fed’s easy monetary policy to remain in effect for some time to come.

“But I do believe the markets are going to price rate hikes sooner than the Fed is talking about,” he told MarketWatch.

In other economic data, the US import price index rose 1.2% in March and 0.8% for fuel prices. Economists polled by Dow Jones and The Wall Street Journal had predicted an increase of 0.9%.

Which companies is the focus on?

• Coinbase Global
  COIN,
  + 31.31%
  one of the first cryptocurrency exchanges to go public saw stocks pop and fall on their debut Wednesday, with the short high lending loan the exchange worth over $ 100 billion.

• Shares of JPMorgan Chase & CoIt fell 1.6% on Wednesday after CEO Jamie Dimon noted that loan demand would remain “challenged” even as the banking giant reported first-quarter earnings and revenues that exceeded expectations.

• Dollar General CorpDG said Wednesday it aims to hire up to 20,000 people at in-person and virtual recruiting events that the discount store is hosting April 19 through April 23.

• Jack in the Box Inc. JACK announced on Wednesday that it will “separate” from Andrew Martin, who has been the fast food chain’s chief information officer since November 2016, effective May 7.

• Shares of Goldman Sachs Group Inc. rose 3% on Wednesday after the bank and brokerage firm reported record earnings and sales that exceeded expectations.

• Wells Fargo & Co.
  WFC,
  + 5.53%
  posted stronger-than-expected earnings and sales for the first quarter, boosted by the release of $ 1.6 billion in loan loss reserves. Shares of Wells Fargo rose 5.4%.

• Bed Bath & Beyond Inc.
  BBBY,
  -12.21%
  Inventory declined 10.4% after the household goods retailer reported fourth-quarter earnings that exceeded expectations but lagged sales.

How are other assets doing?

• The ICE US Dollar Index DXY,
  -0.23%
  a measure of the currency against a basket of six major rivals, fell 0.2%.

• US crude for delivery in May CL.1,
  + 4.54%
  rose 4.9% to settle at a 4-week high of $ 63.15 a barrel on the New York Mercantile Exchange.

• The 10-year Treasury earns TMUBMUSD10Y,
  1,632%
  had increased one basis point to 1.63%. Bond prices move inversely with returns.

• Gold futures ended lower, with the June contract GCM21,
  -0.60%
  down 0.7% to $ 1,736.30 an ounce.

• In Europe, the Stoxx 600 index SXXP rose 0.2%, while the London FTSE 100 UKX rose 0.7%.

• In Asia, the Shanghai Composite SHCOMP gained 0.6%, Hong Kong’s Hang Seng HSI closed 1.4% and Japan’s Nikkei 225 NIK fell 0.4%.

Mark DeCambre contributes to reporting