20 April- Wall Street's main indexes fell on Tuesday for a second straight day as a global spike in coronavirus cases hit travel stocks and investors had second thoughts about the huge U.S. banks' apparently stellar earnings last week.
Kansas City Southern fell 16.1% on the prospect of a bidding war after Canadian National offered about$ 30 billion for the U.S. railroad,$ 5 billion more than an earlier offer from Canadian Pacific.
Boeing Co slid 4.6% after the unexpected departure of its finance chief, the latest shock to hit the planemaker as it fights to recover from the pandemic and 737 MAX crisis.
Investors piled into real estate utilities, consumer goods and healthcare sectors considered relatively safe during periods of economic uncertainty: defensive industries.
Shares of airlines and cruise lines, including JetBlue Airways, American Airlines, Norwegian Cruise Line and Carnival Corp., which were hammered last year as global lockdowns led to a halt in widespread travel, fell between 5% and 9%.
Some of the recent optimism about the leisure industry has waned as the reopening could take a little longer than initially thought, said Michael James, the managing director of equity trading at Wedbush Securities in Los Angeles.
While we 're not out of the woods yet when it comes to the COVID virus and how global economies are reopening, he said. Some of that enthusiasm has diminished.
Wall Street also raised record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a recovery in bond yields.
The Dow Jones Industrial Average fell 1.08%, the Nasdaq Composite 0.77% and the S& P 500 dropped 1.31%.
The CBOE volatility index, known as Wall Street's fear gauge, rose for the first time since March 31 above 19 points.
Dick Bove, senior research analyst at Odeon Capital Group, led the financials lower as analysts reassessed their first-quarter earnings reports.
If accounting changes on how to report loan reserves skewered numbers than a year ago, he said.
People made the assumption that this was a quarter for the banking industry when that's far from the truth, Bove said, adding second-half profits are expected to be very strong.
United Airlines Holdings Inc tumbled 9.6% after reporting a bigger-than expected net loss than expected. Its shares fell the S& P 1500 airline index by 5.2%; Shares of video streaming service provider Netflix Inc, which thrived during the lockdowns of last year, were 0.25% ahead of its results after the closing bell.
International Business Machines Corp. rose 3.8% in two years after the largest quarterly increase in quarterly sales since records began.
Analysts expect first-quarter earnings from the S& P 500 firms to jump 31.5% from a year earlier, according to Refinitiv IBES data.
Declining issues at Nasdaq outnumbered advancing ones on the NYSE by a 3.32- to -1 ratio; declining stocks on the NYSE favored a 3.84- to 1 ratio.
The S& P 500 has 59 new 52 week highs and no new lows, the Nasdaq Composite has recorded 43 new highs and 106 new lows.
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