© Reuters.
By Yasin Ebrahim
Investing.com – The Dow closed higher on Monday, shrugging off a Google-led tech swing, as banks posted gains amid mostly upbeat quarterly earnings.
Up 0.3% or 100 points, up 0.3% and up 0.3%.
Meanwhile, financials rose more than 1% as banking stocks continued to post mostly favorable quarterly results.
Charles Schwab (NYSE: ) rose nearly 4% after a mixed report as earnings beat but revenue fell short of expectations. The brokerage also reported a drop in deposits and said it was ending a share buyback program.
M&T Bank (NYSE: ) rose more than 7% as its quarterly hit on both the top and bottom lines, while: State street Corp (NYSE: ) fell 9% after the first quarter missed estimates.
But Alphabet’s (NASDAQ: ) 2% slide stifled upside momentum on reports that Samsung (KS: ) plans to ditch Google Search in favor of Microsoft’s (NASDAQ: ) Bing as the default search engine on its devices , which threatens about $3 billion in annual revenue. , the New York Times reports.
Apple (NASDAQ: ) closed flat as the tech giant announced it will launch a savings account for Apple card users.
Netflix ( NASDAQ: ) fell more than 1% after markets closed Tuesday ahead of its quarterly results, with some on Wall Street eager for an update on the streaming giant’s crackdown on password sharing.
“We think the main debate in print is the impact of paid exchanges [near-term] growth,” UBS said in a recent note. “We continue to believe that restrictions on password sharing can provide [mid-single digit percentage] raise to rotation (ex-rotation) and become active quickly,” it added.
Sentiment in the market’s bullish corners, including technology, was also weighed down by a rise in Treasuries amid growing fears of further interest rate hikes by the Federal Reserve.
“We continue to expect a 25 bp rate hike at the FOMC meeting in May,” UBS said, adding that the Fed’s unexpected pause would likely be driven by concerns “about the banking system and credit.”
According to Investing.com, the possibility of a 25 basis point rate hike at the Fed’s May 3 meeting is almost too expensive.
Meanwhile, Roblox (NYSE: ) fell 12% after warning in March that average daily user bookings, a measure of the company’s revenue, were expected to decline year over year.
In deal news, Prometheus Biosciences (NASDAQ: ) surged 70% after Merck & Company Inc (NYSE: ) announced it had agreed to acquire the biosciences company in a deal worth $10.8 billion.
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