The major averages were lower as earnings reporting volumes pick up alongside more headlines on states that are starting to lay out their reopening plans. Earnings season will really get supercharged in the next two days as five of the six companies with the largest market caps in the S&P - Alphabet (GOOGL), Microsoft (MSFT), Facebook (FB), Apple (AAPL) and Amazon (AMZN) - will report in the next 48 hours, beginning with Google's parent company tonight.
ECONOMIC EVENTS: In U.S. data, the advance goods trade deficit unexpectedly widened to $64.2B in March as goods exports dropped 6.7% to $127.6B and imports declined 2.4% to $191.9B. An index of consumer confidence tanked another 31.9 points to 86.9 in April following March's 13.8 point plunge. The Richmond Fed manufacturing index dropped 55 points to -53 in April after the surprise 4 point increase to 2 in March.
In COVID-19 news, the latest data from the Johns Hopkins Whiting School of Engineering shows there are now 3.08M confirmed cases of COVID-19 worldwide, including over 1M in the United States, and 213,824 deaths due to the disease. In New York, which is viewed as the epicenter of the disease in the U.S., Governor Andrew Cuomo reported 335 coronavirus deaths yesterday in the state, compared to 337 the day before. The governor noted that the hospitalization rate down a tick, changes in hospitalization on a rolling basis is down, and that the number of COVID-19 hospitalizations a day is under 1,000, which is "good news."
TOP NEWS: Boeing (BA) shares rose 2% despite Andy Pasztor and Andrew Tangel of The Wall Street Journal's report that the company faces criminal and civil scrutiny into years of quality-control lapses on its 737 MAX assembly line.
Also helping prop up the Dow following its earnings report was 3M (MMM), which closed 2.7% higher after it reported better than expected results for the first quarter. The company, which withdrew its fiscal 2020 guidance, said that the financial impact of the COVID-19 pandemic is "varying" across its business, adding that 3M is suspending share repurchases.
Caterpillar (CAT) was in focus after it reported quarterly results, noting that retail machine sales fell 17% on a three month rolling basis for March. The company added that about 75% of its primary production facilities are continuing to operate and that it is "well positioned" to navigate the COVID-19 pandemic.
UPS (UPS) shares fell 6% after the shipper reported lower than expected Q1 earnings, withdrew guidance for fiscal 2020, and suspended share buybacks for the remainder of the year. Of note, the company said on its quarterly call that its liquidity is good and that it does not expect any impact from COVID-19 on its dividend.
In other earnings news, Merck (MRK) shares slid 3.4% after the company reported upbeat Q1 results but lowered its fiscal 2020 earnings guidance. Merck noted that, to-date, COVID-19 has not had any material impact on production. Meanwhile, Pfizer (PFE) reported better than expected Q1 results and reaffirmed its guidance for FY20, saying it has seen no "significant disruption" to its supply chain to date. In other Pfizer news, CEO Albert Bourla told the Wall Street Journal in an interview that the the company could have a COVID-19 vaccine ready for use on an emergency basis in the fall if it proves to work safely in testing.
Shares of PepsiCo (PEP) were 1.4% higher after the snack and beverage giant reported better than expected Q1 results and said that its previous fiscal 2020 guidance is "no longer applicable." Of note, PepsiCo added that it closed its acquisition of Rockstar Energy Beverages. Shares of Monster Beverage (MNST) slipped fractionally after that news and Pepsi's announcement of an exclusive alliance for PepsiCo to distribute the portfolio of Bang Energy beverages in the United States.
Meanwhile, Bloomberg reported that President Trump plans to declare meat-processing plants are critical infrastructure and use the Defense Production Act to order that they remain open. Trump signaled as much by saying he planned to sign an order aimed at Tyson Foods' (TSN) liability, which had become "a road block" for the company, according to Bloomberg. Other publicly traded companies in the meat production space include Conagra Brands (CAG), Pilgrim's Pride (PPC), Sanderson Farms (SAFM) and Hormel Foods (HRL).
MAJOR MOVERS: Among the noteworthy gainers was Syndax (SNDX), which rose 69.4% after it reported initial clinical data for SNDX-5613. Also higher were F5 Networks (FFIV) and Cognex (CGNX), which gained a respective 7.6% and 12% after reporting quarterly results.
Among the notable losers was Blueprint Medicines (BPMC), which dropped 17.3% after reporting that the Phase 3 VOYAGER clinical trial of avapritinib versus regorafenib in patients with locally advanced unresectable or metastatic gastrointestinal stromal tumor, or GIST, did not meet its primary endpoint. Also lower were Harmonic (HLIT) and K12 (LRN), which fell 13.7% and 12.3%, respectively, after reporting quarterly results.
INDEXES: The Dow fell 32.23, or 0.13%, to 24,101.55, the Nasdaq lost 122.43, or 1.4%, to 8,607.73, and the S&P 500 declined 15.09, or 0.52%, to 2,863.39.
