Dow Jones down 37 at 20,976 and S&P 500 down 2 at 2,397
Nasdaq Composite hits new high with an 18 point gain at 6,121
After the bell, Nvidia and Electronic Arts clock up gains but figures from Walt Disney are deemed "a bit Mickey Mouse"
Car rental firm Hertz moves sharply into reverse
The Nasdaq Composite racked up another record closing high but the two other main benchmarks failed to join it in the sun.
The Nasdaq Composite closed at 6,121, up 18 points. In contrast, the Dow relinquished early gains to finish 37 points lower at 20,976 while the S&P 500 did likewise to close at 2,397, down two points.
In Canada, the S&P/TSX Composite closed out the day at 15,569, down 83 points.
In the US, after the bell video graphics chip designer Nvidia Corporation (NASDAQ:NVDA) shot up 13% as its first quarter earnings surprised on the upside.
Another tech stock, computer games publisher Electronic Arts Inc (NASDAQ:EA) rose 3.7% on its results statement but theme parks operator and films maker Walt Disney Co (NYSE:DIS) shed 2.9% as its figures fell flat.
1.15pm... Nasdaq powers on but oil majors weigh on the Dow and S&P
Although the tech-heavy Nasdaq remains in positive territory, the Dow and the S&P 500 have turned south.
The Dow Jones was off 14 at 20,998 in lunchtime trading while the S&P 500 was down almost a point at 2,399.
The Nasdaq Composite was 21 points to the good at 6,124.
Small business sentiment fell in April for the third month in a row, dipping to 104.5 from 104.7 in March, though the reading was ahead of the market consensus forecast of 103.8.
As Russ Mould, investment director at AJ Bell described it, there was a little of something there to keep both bulls and bears interested.
Definitely not helping the indexes sustain early gains were the oil stocks, which fell back in line with the weaker oil price.
Chevron Corporation (NYSE:CVX) was off 1.5% while Exxon Mobil Corp (NYSE:XOM) was down 0.7%.
Car rental group Hertz Global Holdings Inc (NYSE:HTZ) was in a world of hurt after its first quarter numbers raised fears that car share facilitators such as Uber are fatally undermining its model.
Hertz's shares reversed 11.6% to US$13.185 after it reported a first quarter net loss of US$223mln, which was worse than the US$52mln it lost a year earlier.
Revenues declined 3% year-on-year.
In contrast, Teladoc Inc (NYSE:TDOC), which provides health advice online or over the phone, notched up a healthy gain of 22% as first quarter revenue grew 60% year-on-year.
9.15... Indexes scale new highs but without much gusto
Some decent corporate updates have spurred indexes to new heights.
The S&P 500 index broker through the 2,400 level and was up 4 at 2,403 after just over half an hour's trading.
The Dow Jones was 28 points to the good at 21,039.
Controversial pharmaceutical company Valeant Pharmaceuticals (TSE:VRX, NYSE:VRX) advanced more than 10% after chief executive Joseph Papa told investors that the company has met its internal expectations in the first quarter.
Despite the strong performance by the Canadian drugs giant, Canada's S&P/TSX Composite got off to a soft start, shedding 36 points at 15,616.
Office supplies group Office Depot Inc (NASDAQ:ODP) filed some pleasing first quarter numbers as well, pushing the shares up 3.3% to US$5.28.
Net income from continuing operations rose 19% from a year earlier to US$74mln. Like-for-like sales in the first quarter were down 5% year-on-year in North America, which was worse than the 2.8% decline expected by analysts.
Wayfair Inc (NYSE:W), which confusingly calls itself “one of the world's largest online destinations for the home” (it's an online retailer) shot up 20% to US$61.23 as it reported a 46% year-on-year increase in active customers to 8.9mln.
Market preview
Ahead of the open, US blue-chips were expected to start the day modestly firmer – enough to push the S&P 500 above 2,400.
Spread betting markets indicate a three point gain for the S&P, which closed last night at 2,399.
The Dow Jones was expected to open its account at around 21,042, up 30 points.
If the forecasts are accurate, it would hardly be the most convincing of openings and there is a sense that the market is marking time.
“While the market remains resilient, it is becoming increasingly clear that the breadth of the gains, i.e. the number of companies driving the market higher, is getting weaker. Healthy rallies are built on broad-based gains, not on just a few big names like Apple doing all the work,” suggested Chris Beauchamp of spread betting firm IG.
“This reinforces the idea that the foundations of the rally are becoming increasingly shaky, and that the clear out, if and when it comes, will be swift and brutal,” he warned.
If he is correct, someone should tell the market; the VIX index – sometimes referred to as the Fear index - closed at its lowest level since 1993. The VIX is a measure of volatility in the markets, and at the moment all appears to be calm – some would day moribund.
Meanwhile, not much is shaking in the oil market either, according to Ole Hansen, head of Commodity Strategy at Saxo Bank.
“While Opec is trying to cut production, Libyan output is at its highest level since October 2014 and US shale oil has added 800,000 barrels to the market.
“Oil is staying below key resistance at $47/barrel (WTI) and $50/b (Brent) and hard data is needed,” Hansen says.
Commodities are also soft after Monday's underwhelming trade numbers out of China.
In pre-market trading, hotels group Marriott International Inc (NASDAQ:MAR) was an early riser, advancing 5.4% on the back of first quarter results.
Marriott posted an 11% year-on-year increase in first quarter earnings per share at 94 cents.
In constant currency terms, the group saw a 3.1% rise in revenue per available room.
Broadcaster CBS Corp (NYSE:CBS) also got a boost from its quarterly results released after the bell last night.
Earnings per share of US$1.09 on revenue of US$3.34bn topped the market consensus forecasts of earnings of 95 cents a share on revenue of US$3.28bn.