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Stocks Fall From Records; Tech Leads the Drop

TheStreet logo TheStreet 4/19/2021 Joseph Woelfel
a group of people sitting at a desk: Stocks Fall From Records; Tech Leads the Drop © TheStreet Stocks Fall From Records; Tech Leads the Drop

Stocks finished lower on Monday following the S&P 500's fourth straight week of gains as investors turned their attention to a busy week of earnings reports.

The Dow Jones Industrial Average finished down 123 points, or 0.36%, to 34,077, the S&P 500 dropped 0.53% and the tech-heavy Nasdaq was down 0.98%.

Tesla finished down 3.6% Monday after a Tesla Model S involved in an accident that killed two passengers over the weekend in Texas was believed to be without a driver and on autopilot.

Nvidia ended down 3.5% after U.K. regulators said they were intervening in the semiconductor company's proposed acquisition of Arm Ltd.

"When we're facing a broad market that's traded at record highs for weeks, (Monday's) pullback is no surprise," said Chris Larkin, managing director of trading and investing product at E-Trade.

"Traders could be taking profits and looking for opportunities in new areas of the market. And with a deluge of earnings activity this week from across industries, we may be in a bit of a holding pattern until investors digest any beats or misses on that front.

"Bottom line is that short-term volatility is typical when we're knocking around market highs as traders look to uncover value."

The Dow and S&P 500 on Friday closed at records for a second day as soaring growth in China and strong U.S. data provided investors with further reason to believe in a surging post-pandemic recovery.

For the week, the Dow rose 1.2%, the S&P 500 gained 1.4%, and the Nasdaq rose 1.1%.

The yield on the 10-year U.S. Treasury rose Monday to 1.599%. Yields have been easing in April amid diminished concern that the Federal Reserve would boost interest rates sooner than expected to curtail recovery-induced inflation.

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Coca-Cola posted stronger-than-expected first-quarter earnings but noted that sales from stadiums, restaurants and movie theaters continued to be pressured by coronavirus closures. The stock finished up 0.6% at $54.

International Business Machines is expected to report quarterly earnings after the closing bell Monday. Netflix reports Tuesday.

Top Earnings to Watch This Week: Coca-Cola, J&J and Netflix

Bitcoin rose 0.23% Monday to $55,821 after suffering steep losses on Sunday. The moves followed a week that sent the world's largest cryptocurrency to records after the stock market debut of Coinbase Global .

Bitcoin dropped 15% on Sunday, the most since February.

CNN reported that the sharp drop in bitcoin over the weekend seemed to have been triggered by an unconfirmed Twitter rumor that the U.S. Treasury was planning to crack down on money laundering schemes involving cryptocurrencies. The Treasury declined to comment.

Coinbase Is Here - What Jim Cramer Says

Data from the Centers for Disease Control and Prevention published Sunday indicated that just more than half of the U.S. population has received at least one coronavirus vaccine dose, with 84.2 million completely inoculated and 209.4 million doses administered.

The U.S. is on pace for so-called herd immunity and a full reopening of the world's largest economy by the early summer.

But global infections have been rising, with 5.2 million new cases -- the most on record -- confirmed last week as vaccine campaigns in Europe sputter and larger nations such as India and Brazil continue to suffer outbreaks and new variant developments.

This article was originally published by TheStreet.

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