News

Market Snapshot: Dow hits milestone at 35,000 after last week’s job report seen keeping Fed at bay, but Nasdaq skids 1.4%

0

The Dow Jones Industrial Average hit a milestone at 35,000, marking the latest in a string of all-time highs Monday as the broader market saw a mixed performance. The blue-chip gauge was building on gains from the end of last week when a disappointing jobs report was seen keeping the Federal Reserve from considering an eventual tightening of monetary policy.

What are major indexes doing?
  • The Dow Jones Industrial Average
    DJIA,
    +0.67%

    was up 214 points, or 0.6%, at 34,992, briefly carving out an intraday all-time high at 35,016.10.
  • The S&P 500
    SPX,
    -0.05%

    was down 4 points, or 0.1%, at 4,227.
  • The Nasdaq Composite
    COMP,
    -1.26%

    slumped 189 points, or 1.4%, to 13,560.

On Friday, stocks shook off a much-weaker-than-expected April jobs report Friday, with the Dow and S&P 500 both ending at records, while the Nasdaq Composite outpaced its major benchmark peers but still posted a weekly loss.

What’s driving the market?

Analysts said Friday’s disappointing April jobs report, which saw U.S. nonfarm payrolls rise by 266,000 versus a consensus forecast for an increase of 1 million, continued to provide a positive backdrop for equities.

Read: Here’s why the Dow and S&P 500 hit records despite a weak April jobs report

“In our view, the jobs report shows a surprising pause in the labor market recovery, coming at a time when the underlying fundamentals and alternative data are pointed towards acceleration,” wrote analysts at Credit Suisse, in a note.

“Nevertheless, this report should delay any discussion of withdrawing accommodation until a decisive labor market rebound takes place,” they said. “As such, we continue to expect positive equity returns, but at the expense of increased near-term volatility.”

See: Weak jobs report belies U.S. recovery under way — but are international stock markets a better bet now?

Investors were tracking developments around a cyberattack on a vital pipeline that delivers around 45% of fuel consumed on the East Coast. Georgia-based Colonial Pipeline over the weekend said it closed the pipeline was the target of a ransomware attack.

Gasoline futures
RB00,
+0.36%

were up more than 1%, though analysts said pump prices may avert a rise if operations are restored within a few days. Oil futures also moved higher.

Tech and other growth-oriented stocks, which are expected to grow earnings faster than their peers, were buoyed Friday as the jobs data sparked a retreat for Treasury yields. Those shares appeared set to resume their recent underperformance, however, as yields pushed to the upside on Monday.

Need to Know: This is the ‘greatest threat’ to Big Tech’s S&P 500 dominance, Goldman says

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.573%

was little changed early Monday. Yields and bond prices move in opposite directions.

Meanwhile, a strong earnings season was moving into its final stage.

Through Friday, 88% of S&P 500 companies had reported earnings covering the first quarter, according to FactSet. The index is now reporting the highest year-over-year growth in earnings since for the first quarter since 2010, said John Butters, senior earnings analyst at FactSet, in a note.

Analysts also expect double-digit earnings growth for the remaining three quarters of 2021. These above-average growth rates are due to a combination of higher earnings for 2021 and an easier comparison to unusually weak earnings in 2020 due to the negative impact of COVID-19 on numerous industries, Butters said.

Which companies are in focus?
  • American depositary receipts for BioNTech SE
    BNTX,
    +2.94%

    jumped nearly 9% after the German biotechnology group, which co-developed the first COVID-19 vaccine to win regulatory approval with Pfizer Inc.
    PFE,
    +0.87%
    ,
    on Monday reported a surge in revenues.
  • U.S. Foods Holding Corp.
    USFD,
    -3.65%

    reported earnings and revenue that topped forecasts and said it wouldn’t provide guidance due to pandemic-related uncertainty. Shares were down 0.2%.
  • Shares of Energizer Holdings Inc.
    ENR,
    -0.73%

    fell 0.8% after the battery maker delivered results that blew past Wall Street forecasts.
  • Marriott International Inc.
    MAR,
    -2.69%

    shares were down 2.2% after the hotel operator announced earnings that beat estimates but revenue that fell short.
  • Shares of Tyson Foods Inc.
    TSN,
    -2.19%

    fell 2.7% after the protein manufacturer reported fiscal second-quarter earnings and sales that beat expectations.
What are other markets doing?
  • The ICE U.S. Dollar Index
    DXY,
    -0.14%
    ,
    a measure of the currency against a basket of six major rivals, was off 0.1%.
  • Oil futures were higher, with the U.S. benchmark
    CL00,
    -0.55%

    up 0. 7% at $65.39 a barrel. Gold futures
    GC00,
    +0.59%

    edged higher, up 0.7% near $1,845 an ounce.
  • The pan-European Stoxx Europe 600
    SXXP,
    -0.03%

    and London’s FTSE 100
    UKX,
    -0.05%

    were trading near unchanged. In Asia, Hong Kong’s Hang Seng Index
    HSI,
    -0.05%

    fell 0.1%, while Japan’s Nikkei 225
    NIK,
    +0.55%

    rose 0.5% and the Shanghai Composite
    SHCOMP,
    +0.27%

    gained 0.3%.
  • Crypto assets were in focus, with parody coin dogecoin
    DOGEUSD,
    -16.02%

    dropping sharply following the airing of a heavily hyped episode of “Saturday Night Live” guest-hosted by Tesla Inc.
    TSLA,
    -3.12%

    CEO Elon Musk. Ether
    ETHUSD,
    +4.99%

    coins that run on the Ethereum blockchain, however, were trading near records above $4,000.

Check out: What the dogecoin army is saying as the cryptocurrency’s tumble triggers a bearish break in the long-term trend line

Market Snapshot: Dow, S&P 500 set for records as stock futures point mostly higher

Previous article

Metals Stocks: Gold prices extend climb to highest level since February as dollar sinks to 2 1/2-month low

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News