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US STOCKS-Wall Street slips from record levels; Tesla drops after fatal car crash

Published 19-04-2021, 09:49 pm
© Reuters.
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(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)

* Tesla falls after fatal crash, bitcoin slump

* GameStop shares jump as CEO exits

* VIX spikes to near two-week high

* Coca-Cola (NYSE:KO) rises as revenue beats estimates

* Indexes down: Dow 0.44%, S&P 0.52%, Nasdaq 1.09% (Adds comment, details; updates prices)

By Shivani Kumaresan and Medha Singh

April 19 (Reuters) - Major U.S. stock indexes fell from record levels on Monday as investors sought cues from first-quarter earnings reports to justify the rich valuation of equities, while Tesla shares fell following a fatal car crash.

The electric-car maker TSLA.O was down 3.5% after a Tesla vehicle, which was believed to be operating without anyone in the driver's seat, crashed into a tree on Saturday night north of Houston, killing two occupants. stock, which was the biggest drag on the S&P 500 and the Nasdaq, was also under pressure due to a sharp drop in bitcoin BTC=BTSP over the weekend.

Coca-Cola Co KO.N rose 1% after the beverage maker trounced estimates for quarterly profit and revenue, benefiting from the easing of pandemic curbs and wide vaccine rollouts. Corp IBM (NYSE:IBM).N , another blue-chip company, slipped about 0.2% ahead of its results after market close.

"The market has had a huge jump to the upside so it needs to take a little bit of rest," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"For now it's just a little bit of profit taking as traders await results from big tech names on Wall Street."

A recent pullback in the benchmark 10-year bond yield US10YT=RR from 14-month highs has renewed interest in richly valued technology stocks, while a string of strong economic data has also helped push the S&P 500 and the Dow to record levels.

The S&P 500 has risen for the past four weeks, its longest winning streak since August 2020.

About 79 S&P 500 companies are due to report earnings this week, including Johnson & Johnson (NYSE:JNJ) JNJ.N , Netflix Inc NFLX.O , Intel Corp INTC.O , Honeywell (NYSE:HON) HON.N and Schlumberger (NYSE:SLB) SLB.N , according to Refinitiv IBES data.

Analysts now expect first-quarter earnings for S&P 500 firms to rise 25% from last year.

Nine of the 11 major S&P sectors dropped, while the defensive consumer staples .SPLRCS and real estate .SPLRCR were in positive territory.

At 11:37 a.m. EDT the Dow Jones Industrial Average .DJI fell 149.99 points, or 0.44% , to 34,051.05, the S&P 500 .SPX lost 21.88 points, or 0.52 %, to 4,163.59 and the Nasdaq Composite .IXIC lost 153.28 points, or 1.09 %, to 13,899.06.

GameStop Corp (NYSE:GME) GME.N jumped 6.7% on the announcement of its CEO's resignation. stocks including miners Riot Blockchain RIOT.O and Marathon Digital MARA.O slumped about 11% each as bitcoin took a hammering. HOG.N jumped 12% after the motorcycle maker raised it full-year forecast for sales growth. issues outnumbered advancers by a 2.2-to-1 ratio on the NYSE by a 3.9-to-1 ratio on the Nasdaq.

The S&P 500 posted 56 new 52-week highs and no new lows while the Nasdaq recorded 128 new highs and 87 new lows.

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