Markets traded slightly lower mid-week as investors got their first glimpse at corporate earnings and continued to digest the latest COVID-19 updates. Financial heavyweights like Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C) led the decline after delivering worse-than-expected first quarter earnings results and forward guidance. On a more positive note, companies in the technology sector have continued to outperform the broader market with the Nasdaq Composite Index trading just 6% lower for the year. On the data front, retail sales fell 8.7% during March including a 50% decline for clothing stores, a 27% decline for home furnishings, and restaurants and bars down 26%. Industrial production also declined by more than expected. The dismal U.S. retail and industrial production data comes as the European Union and the U.S. federal officials draft plans to lift restrictions in an effort to help mitigate the economic downturn. Energy markets continue to face significant headwinds with WTI Crude trading below $20 per barrel. Investors will remain focused on earnings and forward guidance with most major corporations slated to report first quarter earnings in the coming weeks. Interest rates rallied this week, with the yield on the 10-year Treasury note trading around 0.64% after starting the week at 0.74%.
Source: Bloomberg, CNBC, WSJ Market Data, GSAM