Eyes on Tech Stocks' Earnings... Nasdaq Hits All-Time High, Bitcoin Up 8% (Comprehensive)

by Paek Jongmin

Published 27 Apr.2021 06:26(KST)

[Asia Economy New York=Correspondent Baek Jong-min] Although major indices on the New York Stock Exchange closed mixed, the Nasdaq index set a record high at the closing price. Earnings announcements from major tech stocks began, starting with Tesla. Cryptocurrencies, which had experienced significant corrections, started the weekly trading session on an upward trend.

[Image source=Reuters Yonhap News]

On the 26th (local time), the Dow Jones Industrial Average fell 61.92 points (0.18%) to close at 33,981.57, but the S&P 500 rose 7.45 points (0.18%) to 4,187.62, and the Nasdaq rose 121.97 points (0.87%) to close at 14,138.78.

Although the Dow declined, the S&P 500 approached an all-time high, and the Nasdaq closed at its highest closing level since February 12.

The market showed caution ahead of major events scheduled for this week. These include President Joe Biden’s congressional address and the Federal Reserve’s Open Market Committee (FOMC) meeting, but the earnings announcements from key tech stocks such as Apple, Amazon, Alphabet, Facebook, and Microsoft drew attention.

FactSet reported that 83% of companies that have announced earnings so far exceeded expectations, raising optimism for the earnings season.

FactSet explained that this proportion is the highest in a 10-year earnings record. Strong earnings are necessary to sustain the upward momentum of the S&P 500, which has soared to record highs. Reflecting this optimism, most major tech stocks showed strength.

The electric vehicle company Tesla kicked off the full-scale earnings season. After market close, Tesla announced that it delivered 180,000 vehicles in the first quarter, double the amount from the same period last year, recording $10.4 billion in revenue. The revenue growth rate was 74%. Net profit was $438 million, the highest ever.

Tesla’s stock price fell 2% following the earnings announcement.

On the same day, retail-related stocks such as P&G, Walmart, and Coca-Cola showed a decline of around 1%.

Cryptocurrencies all showed strong gains. Bitcoin rose 7% compared to 24 hours earlier, trading at $54,000. Analysts say this was influenced by reports that the largest U.S. bank, JP Morgan Chase, will sell Bitcoin funds to high-net-worth individual clients.