US Stocks end mixed on profit booking, earnings concerns

The US equity market finished session mixed on Monday, 13 April 2020, as investors elected to book profit after a strong rally last week and on caution ahead of widely expected painful quarterly earnings season due to the coronavirus pandemic. Lingering concerns about the economic impact of the coronavirus pandemic also weighed on the markets. However, market losses capped after major oil producers agreed to cut output as demand craters because of the slowdowns caused by the global coronavirus pandemic. At closing bell, the Dow Jones Industrial Average slumped 328.60 points or 1.4% to 23,390.77. The S&P 500 slid 28.19 points or 1% to 2,761.63. The Nasdaq Composite climbed 38.85 points or 0.5% to 8,192.42.

Wall Street closed higher last week, with the S&P 500 gained12.1%, the Dow rose 12.7%, and the Nasdaq Composite climbed 10.6%, thanks to unprecedented efforts by the Federal Reserve to support the economy through the coronavirus crisis. That, combined with a $2 trillion economic rescue plan enacted at the end of March, has helped the market regain some lost ground in recent weeks.

Investors are looking ahead to get some details this week about how much damage the economic fallout of the coronavirus is having on Corporate America. Several major banks, including JPMorgan Chase, Wells Fargo, Citibank and Bank of America are due to report their first-quarter results this week. Other big companies, including UnitedHealth Group, Johnson & Johnson and Rite Aid are also on deck to report results this week.

Lingering concerns about the economic impact of the coronavirus pandemic also weighed on the markets, with the number of daily deaths from the disease in the U.S. reaching a record high of more than 2,000 on Friday. However, White House health advisor Dr. Anthony Fauci expressed "cautious optimism" the outbreak is slowing down. Fauci noted that hospitalizations and intensive care admissions in the New York metropolitan area have not only flattened but stated to turn the corner. "So, that's where we're hopeful. And it's cautious optimism that we're seeing that decrease," Fauci said. "And if you look at the patterns of the curves in other countries, once you turn that corner, hopefully, we will see a very sharp decline." At the same time, Fauci cautioned that reopening the country will not be like flipping a light switch and will depend on the situation in different parts of the country.

New York Governor Andrew Cuomo also recently suggested that "the worst is over" if people "continue to be smart going forward.""We're controlling the spread," Cuomo said at a press conference on Monday. "The worst can be over, and is over, unless we do something reckless."

Crude oil prices gained after OPEC producers dominated by Saudi Arabia and allies led by Russia agreed on Sunday to cut output by 9.7 million barrels per day from May to reflect the collapse of demand due to the pandemic.

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