(Bloomberg) — Wall Street’s enthusiasm for stocks faded after a four-day rally that led the market to its longest winning streak since March.
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Stocks fell, with the S&P 500 moving away from the 5,200 mark it briefly touched this week. Tesla Inc. and Nvidia Corp. led the losses in megacaps. Intel Corp. slumped after the chipmaker weakened its revenue outlook following a U.S. ban on chip exports to Huawei Technologies Co. Uber Technologies Inc. fell on disappointing gross bookings.
Investors’ lack of conviction in the recent rebound in U.S. stocks shows the market is far from completely bullish, say strategists at Citigroup Inc. The recent unwinding of short positions has left the S&P 500 close to a net long position unilateral, but investors appear reluctant to strengthen existing bullish positions, a team led by Chris Montagu wrote in a note.
“Flows demonstrate limited enthusiasm with a trickle of new long positions and a marginal increase in risk appetite,” Montagu said.
The S&P 500 fell to around 5,170 points. Yields on the 10-year Treasury rose three basis points to 4.48%. That’s ahead of a US$42 billion bond auction on Wednesday.
Company strengths:
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Lyft Inc. reported first-quarter results and financial guidance that beat investors’ expectations, a sign of the company’s ability to retain and attract new passengers in the United States and Canada.
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Rivian Automotive Inc. fell short of Wall Street’s expectations to start the year, as the automaker works to revamp its manufacturing operations and increase production of electric vehicles.
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Chinese iPhone shipments jumped about 12% in March after Apple Inc. and its retailers cut prices, official data shows, suggesting efforts to halt the accelerating decline in sales are yielding initial results .
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Reddit Inc. surged as improvements to the social media platform’s advertising system helped push its quarterly sales higher than expected in its first results as a public company.
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Shopify Inc. fell after the Canadian e-commerce company reported a surprise first-quarter net loss following the sale of its logistics business last year.
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Brookfield Asset Management reported its first quarterly profit decline since splitting from its parent company, amid falling fees for some permanent capital vehicles.
Key events this week:
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Bank of Japan releases summary of opinions from April policy meeting on Thursday
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Chinese trade, Thursday
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British BOE rate decision on Thursday
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First unemployment claims in the United States, Thursday
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UK industrial production, GDP, Friday
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The ECB publishes the minutes of its April policy meeting on Friday
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BOE Chief Economist Huw Pill Speaks Friday
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Consumer sentiment from the American University of Michigan, Friday
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Chicago Fed President Austan Goolsbee speaks Friday
Some of the main market movements:
Actions
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The S&P 500 fell 0.4% as of 9:30 a.m. New York time
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The Nasdaq 100 fell 0.5%
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The Dow Jones Industrial Average fell 0.1%
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The Stoxx Europe 600 increases by 0.1%
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The MSCI World index fell 0.5%
Currencies
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The Bloomberg….
