5 things to know before the stock market opens on Tuesday, April 20th

Below are the most important news, trends and analyzes that investors need to start their trading day:

U.S. futures fell on Tuesday as investors consider the quarterly results of four Dow components and expect Netflix gains after the bell and an Apple product event in the afternoon. Apple is expected to unveil new iPads, iMacs and AirTags tracking devices. Tobacco stocks were under pressure after the Wall Street Journal reported that the White House could order tobacco companies to reduce nicotine levels in all cigarettes.

The Dow Jones Industrial Average started the week off Friday’s record close. The S&P 500 also fell modestly from its previous record close. The Nasdaq lost 1% on Monday after becoming shy on Friday at the close of the February heavy technology index record. The 10-year Treasury yield remained steady early Tuesday after surpassing 1.6%. However, it remained below last month’s 14-month high.

Shares of Dow Johnson & Johnson, Procter & Gamble and Travelers reported results before the bell. IBM, also a Dow stock, issued quarterly earnings Monday afternoon.

• J&J exceeded first-quarter earnings and revenue estimates, including $ 100 million in sales of its Covid vaccine, which is on hold in the U.S. while health regulators investigate rare but serious blood clotting problems. Chief Financial Officer Joseph Welk told CNBC Tuesday that he expects the “benefit-risk profile to develop” for the company’s vaccine. Shares fell in the pre-market.
• P&G exceeded earnings and revenue expectations in its third fiscal quarter as consumers maintained Covid buying trends, such as buying more cleaning supplies and starting buying beauty products again. Shares fell in the pre-market.
• Travelers reported better-than-expected earnings in the first quarter. Revenue basically matches estimates. The insurance giant increased its dividend and added $ 5 billion to its repurchase program. Shares rose 1% in the premarket.
• IBM issued revenue and revenue for the first quarter that exceeded estimates. The service and business technology provider recorded revenue growth after four quarters of falls. Shares rose about 3% in the pre-market.

Shares of United Airlines fell 2.5% in the pre-market on Tuesday morning after the company reported a larger-than-expected first-quarter loss of $ 7.50 per share, its fifth quarterly loss consecutive. Revenue of $ 3.222 billion fell nearly 60 percent from last year and fell short of estimates. Higher fuel costs and demand further decreased due to poor Covid results. However, United is making a comeback to return to profitability later this year as vaccines against Covid increase and governments relax travel restrictions.

Elon Musk denied that Tesla’s automated driving systems were involved in a fatal crash in the suburb of Spring, Texas, in Houston on Saturday. Tesla’s CEO tweeted on Monday: “Data records recovered so far show autopilot was not enabled.” Local police said no one was in the driver’s seat when the 2019 Tesla Model S veered off the road and burst into flames. The two men in the car died. Two federal agencies, the NHTSA and the NTSB, are investigating the crash, along with local police. None has completed its research and its preliminary findings are inconclusive.