Stock market indexes slid lower Monday and were near session lows in the last hour. Bank earnings showed mixed results. State Street Bank led the downside, plunging more than 12%.
The Dow Jones Industrial Average was relatively unchanged. The Nasdaq lost 0.3% while the S&P 500 shed 0.2%. The iShares Russell 2000 ETF rose nearly 0.6%.
NYSE volume was slightly higher and Nasdaq volume dipped compared with the same time on Friday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF retreated 0.6%. The Innovator IBD 50 ETF highlighted outperforming growth stocks, up 1.5%.
Crude oil fell 1.8% to $80.98 per barrel. Gold futures trimmed 0.7% to $2,002 per ounce. The SPDR Gold Trust ETF slid 0.8% along with the yellow metal.
Bitcoin sold off 3.5% to $29,400, trading under the psychological $30,000 level. Cryptocurrency exchange Coinbase slid 5.3%.
The 10-year U.S. Treasury yield added 7 basis points to 3.60%. The CME FedWatch tool shows over 80% odds for a quarter-point rate hike at the May Fed policy meeting.
European stocks were mixed, with the German DAX and Paris CAC dropping 0.1%. The London FTSE added 0.2% in afternoon trading.
The New York Federal Reserve's Empire State Manufacturing Survey index rebounded to 10.8 in April from March's -24.6 reading, and better than the -18.3 estimate.
Moderna Tumbles After Failed Flu Vaccine
Moderna tumbled 7.9% in Monday's stock market after a study released on Sunday highlighted failed influenza research. Last week, the drugmaker disappointed investors after reporting an unsuccessful study of flu sufferers.
In other news, a cancer vaccine treatment co-developed with Dow Jones component Merck showed positive results in a midstage trial.
Prometheus Biosciences soared almost 70% in heavy volume after Merck bought the biotech for $200 per share, or around $10.8 billion.
The deal is scheduled to close in the third quarter this year. Dow component MRK pulled back 0.6%.
Enphase rallied over 9% after Piper Sandler upgraded the solar stock to overweight from neutral with a 255 price target. ENPH led the S&P 500 today.
Banks Mixed As Stock Market Looks At Earnings
Charles Schwab rebounded 3.1% after reporting better-than-expected Q1 earnings but a small miss on revenue. Bank deposits fell by 30% as clients shifted money to higher-yielding investments, according to the Wall Street Journal.
Shares are down 37% for the year so far, hit hard by the March banking crisis.
State Street plunged over 12% after missing on Q1 top and bottom lines. STT fell below the 21-day and 200-day lines. The bank stock is on pace for its largest decrease since March 2020.
M&T Bank did an about-face, gaining 5.7% from earlier losses, following a beat on its Q1 EPS and revenue.
Stock Market: Chinese Stocks, Upgrades And Downgrades
Google parent Alphabet sold off 3.4% on news that Samsung considered replacing the search engine with a popular AI alternative after the search engine failed in an early attempt to incorporate new AI into search engine capabilities. Even so, it's way too early to rule out a strong recovery by the tech giant.
Chinese smart electric-vehicle maker Xpeng Motors spiked over 12% after a Reuters report on a new cost-cutting manufacturing platform.
Gaming technology developer Roblox slid 11% after reporting March metrics, including 66.2 million daily active users, down from 67.3 million in February.
Ollie's Bargain Outlet popped 4.2% after JPMorgan upgraded the retailer to neutral from underweight and raised its price target to 66.
Chinese online commerce giant Alibaba rose 1.4%, getting a lift on positive Q1 GDP numbers.
Tech Stocks Retreat
Facebook parent Meta Platforms pulled back 1.7% after New Street Research downgraded the social media stock's rating to neutral from buy and maintained the 220 price target.
Teck Resources climbed 5% in heavy volume and broke out of a cup base, hitting the 47 buy point. The Canadian copper and mineral miner rose on Bloomberg news that the firm was approached by three companies on deal for its base metals mining.
The relative strength line hit a new high, as indicated by the blue dot on MarketSmith pattern recognition.
Netherlands-based ASML dropped 4.8% in heavy volume as chip stocks saw weakness. The move sent shares below the 50-day line, a warning signal.
Dell Technologies recovered 1.2% after earlier losses, after JPMorgan downgraded the stock to neutral with a price target of 47.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
