US stock markets retreated overnight, pushed lower by surging virus cases as investors await more clarity as earnings season hits full gear this week.
Energy and financials led the fall, pushing the Dow Jones down 0.8%, the S&P 500 down 0.7% and the Nasdaq 0.9%.
Apple launches new products
Apple (NASDAQ: AAPL) shares fell 1.3% despite announcing the first redesign of its iMac desktop in close to a decade.
The group also launched a new iPad, both to include the TSMC-designed chips replacing its long history with Intel.
The stay-at-home trade sent iPad sales up 30% each quarter but investors are clearly wary of whether this can continue.
Netflix underdelivers
Netflix (NASDAQ: NFLX) also disappointed adding just 4 million subscribers, well below the 15.8 million it gained for the same period in 2020 powered by the pandemic.
Management highlighted the pull forward impact of the pandemic but reported a quarterly profit of US$1.71 billion, doubling from US$542.2 million in the year before. Netflix shares were down heavily in after-hours trading.
Luxury goods bounce back
Meanwhile, French luxury goods retailer Kering (EPA: KER) reported first-quarter results. Gucci was a rare highlight, with consumers sending comparable sales up 25% for the quarter as spending pivots from electronics and homewares to fashion.
Big movers and shakers
Here’s how some of the more popular US stocks fared in trading overnight:
- IBM (NYSE: IBM) up 3.8%
- Tesla (NASDAQ: TSLA) up 0.6%
- Amazon (NASDAQ: AMZN) down 1.1%
- Visa (NYSE: V) down 1.1%
- Spotify (NASDAQ: SPOT) down 3.3%
- Uber (NYSE: UBER) down 4.1%
- American Airlines (NASDAQ: AAL) down 5.5%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to follow US markets lower at the open on Wednesday. For all the latest, check out Rask Media’s daily ASX 200 report.
