FTSE 100 comes out positive but US stocks mixed as investors eye Coinbase listing

On Apr 14, 2021

The UK blue chip index held steady as the Dow gained ground after Goldman Sachs results

FTSE 100 closes up 49 points
US markets diverge
Tesco leads UK fallers

12.10pm: Stocks mixed across the Atlantic

London’s leading index closed 49 points higher, 0.7%, at 6,940, while the FTSE 250 added 87 points, 0.4%, to 22,355.

Tesco PLC (LON:TSCO) struggled, as shares fell more than 2% to £227.4 after the grocery store chain reported a 20% drop in annual profits.

Across the pond, the Dow jumped 197 points, 0.6%, to 33,874 at midday. Meanwhile, the Nasdaq Composite slipped 52 points, 0.4%, while the S&P 500 was up less than a point to 4,142.

The small-cap focused Russell 2000 jumped 41 points, 1.8%, to 2,270.

“The strong outlook for the US economy laid out in this afternoon’s results has revived the rally in small cap stocks, as flows head back to the physical economy and some of the heat comes out of the recent revival in mega-cap tech names,” IG Chief Market Analyst Chief Beauchamp wrote. “It is still very early days of course, but markets have navigated the initial challenge of earnings season relatively well.”

4.15pm: Nasdaq slips as investors await Coinbase start

Cryptocurrency exchange Coinbase Global Inc is expected to begin trading on Nasdaq at around $350 a share shortly after a bit of a delay.

This values the business at more than $90bn and the stake held by chief executive Brian Armstrong at $13.9bn. It compares to the so-called reference price of $250 put on it by Nasdaq on Tuesday.

Ahead of the launch, Russ Mould, investment director at AJ Bell said: “Cryptocurrencies have taken off in the past few years and investor appetite grows stronger for different ways to play the game. Coinbase’s share price performance is likely to be as volatile as cryptos themselves.”

Some of the excitement in Coinbase seems to have spilled over to other markets, or at least to the Dow Jones Industrial Average. It has added 225 points or 0.67% to 33,902, helped by bumper results from Goldman Sachs, but the S&P 500 is up only 0.09% and the Nasdaq Composite is down 0.18% (perhaps because of the delay in trading Coinbase?)

In the UK the FTSE 100 is up 0.66% or 45.38 points at 6935, close to the day’s peak.

Miners are among the biggest risers in the leading index on hopes that a global recovery will lead to increased demand for commodities, while Tesco PLC (LON:TSCO) is holding on to its place as the biggest faller, down 5.45p or 2.35% to 226.65p after its disappointing results.

3.19pm: Goldman shares jump after bumper results

US markets have caught fire suddenly – or at least the Dow has – as investors decide they like the look of Goldman Sachs’ results.

The bank’s shares are up 3.5% following the figures, helping the Dow Jones Industrial Average to a 177 point or 0.53% rise to 33,855.05 after a very subdued start to trading. Equipment maker Caterpillar is also an influence, up 1.5% ahead of results at the end of the month.

Meanwhile the S&P 500 has added 0.15% and the Nasdaq Composite is up 0.19%.

Back in the UK, the FTSE 100 is up 31.85 points or 0.46% at 6922.34.

2.40pm: Wall Street little moved at the opening bell

The main indices on Wall Street had moved very little in either direction on Wednesday as traders digested the start of earnings season in combination with ongoing worries over the status of the COVID-19 vaccine effort.

In the first minutes of trading, the Dow Jones Industrial Average was up just 0.05% at 33,692, while the S&P 500 was down 0.07% at 4,138 and the Nasdaq fell 0.05% to 13,987.

Given the mixture of sentiment, with vaccine issues seemingly offsetting strong earnings from a number of major banks pre-open, investors seem content to mostly sit on their hands.

Back in London, the FTSE 100 was continuing to rise into late afternoon and was up 33 points at 6,923 just before 2.40pm.

2.32pm: UK banks slip

UK banks are failing to get a lift from the good results…