Stocks in the US stock markets continued to trade lower on Tuesday amid earnings reports released by major blue-chip companies such as Coca Cola, Netflix, IBM, United Airlines among others.
Investors across the globe are still worried about the uncertainty of vaccines and the impact this would have on the recovery of economies as global health authorities expect new waves of virus cases.
On Tuesday, the Dow Jones closed 0.75% lower while S&P fell 0.68%. The Nasdaq 100 was down 0.71% at market close.
Major Markets News
Netflix Q1
American on-demand content platform and production company Netflix Inc. on Tuesday released its Q1 2021 financial results with revenue for the period jumping 24% year on year to $7.2 billion.
The number of its paid subscribers in the first quarter rose by 3.98 million to 208 million, compared to 2020 when the company added 15.77 million subscribers.
Apple Spring Loaded Event Highlights
Apple announced on Tuesday at its Spring Loaded event it will introduce Podcasts subscriptions from next month.
CEO Tim Cook said subscribers will get early access to podcasts, as well as ad-free listening.
European Super League Crashes
Earlier this week, it was reported that US Investment Bank JPMorgan Chase & Co. had agreed to bankroll the newly formed European Super League in a deal valued at more than $4.8 billion. Twelve elite clubs from England, Spain and Italy had agreed to be part of the European Super League.
However, after heavy criticism from fans, domestic leagues and politicians, a number of clubs including Manchester City FC, Arsenal, Manchester United, Liverpool, Chelsea and Tottenham had by Tuesday requested a formal withdrawal from the League.
British Prime Minister Boris Johnson praised English Premier League clubs’ decision to quit the European Super League as the “right result for football fans, “the right result for [association] football fans, clubs, and communities across the country.”
Amazon Prime Video said in a statement on Tuesday that it has not taken part in any discussions regarding the proposed European Super League (ESL) in football
Facebook digital coin launch
The Diem Association, which is backed by Facebook is looking to introduce its global digital currency this year according to CNBC.
Formerly known as Libra, the Facebook-backed digital currency project has faced strong opposition from regulators and lost several key backers and executives.
Diem Association is now in the process of obtaining a payment license from the Swiss financial regulators. The name Libra was changed to Diem in December last year.
Abbott Q1
American multinational medical devices and health care company Abbott Laboratories released its first-quarter earnings results on Tuesday with revenue surging 35.3% to reach $10.46 billion.
“We’re off to a very strong start to the year, with all four of our major businesses achieving strong growth. We’re particularly pleased with the growing momentum of several recently launched products and continue to forecast more than 35% EPS growth for the year,” CEO Robert Ford noted.
Coca-Cola Q1
American multinational beverage corporation Coca-Cola Co. announced first-quarter earnings results on Monday with net revenues jumping 5% to reach $9.02 billion. Operating income surged 14% during the same period in the quarter ending April 2.
“We remain focused on emerging stronger and executing against our growth accelerators during the recovery phase. We are pleased with the progress we are making. We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full-year guidance,” CEO James Quincey said.
Meanwhile, Coca-Cola chief executive officer James Quincey said in an interview with CNBC that prices on the company’s beverages will increase this year to compensate for higher commodity costs.
The last price increase was introduced by the company in 2018 as a response to the aluminium tariffs impact under the Trump administration.
IBM Q1
American technology company IBM announced on Monday its earnings per share in the first quarter landed at $1.06, a drop of 19% on the year. Meanwhile, IBM’s revenue in the same quarter topped analyst expectations at $17.73 billion.
NASA’s helicopter successfully flies on Mars
The National Aeronautics and Space Administration (NASA) on Monday said that its helicopter performed a successful flight on Mars. It was the first controlled flight of a powered aircraft on another planet.
The flight took approximately 40 seconds. The Ingenuity helicopter lifted off, pivoted towards the NASA Perseverance Mars Rover, which remained around 65 meters away, and landed successfully. The flight cost around $85 million.
US Senator introduces bill targeting Big Tech
United States Senator Josh Hawley on Monday introduced legislation aimed against the Big Tech companies.
The legislation dubbed Bust Up Big Tech Act includes a provision that could prohibit tech giants from simultaneously owning an online marketplace and selling goods on the same platform.
Under the bill, the state attorneys general and private citizens would be allowed to take legal action against the Big Tech over their potential failures to act in accordance with the law, while the Federal Trade Commission (FTC) would also gain more authority to review their compliance with the law.
