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
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
was down 4 points, or 0.1%, at 4,227.
The Nasdaq Composite
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.
“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.”
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.
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.
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
jumped nearly 9% after the German biotechnology group, which co-developed the first COVID-19 vaccine to win regulatory approval with Pfizer Inc.
on Monday reported a surge in revenues.
U.S. Foods Holding Corp.
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.
fell 0.8% after the battery maker delivered results that blew past Wall Street forecasts.
Marriott International Inc.
shares were down 2.2% after the hotel operator announced earnings that beat estimates but revenue that fell short.
Shares of Tyson Foods Inc.
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
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
up 0. 7% at $65.39 a barrel. Gold futures
edged higher, up 0.7% near $1,845 an ounce.
The pan-European Stoxx Europe 600
and London’s FTSE 100
were trading near unchanged. In Asia, Hong Kong’s Hang Seng Index
fell 0.1%, while Japan’s Nikkei 225
rose 0.5% and the Shanghai Composite
Crypto assets were in focus, with parody coin dogecoin
dropping sharply following the airing of a heavily hyped episode of “Saturday Night Live” guest-hosted by Tesla Inc.
CEO Elon Musk. Ether
coins that run on the Ethereum blockchain, however, were trading near records above $4,000.