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Market Snapshot: Dow tops milestone at 35,000, but Nasdaq skids 1.5% as social-media stocks swoon

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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, with the tech-heavy Nasdaq Composite down sharply as high-profile Big Tech shares tumbled.

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

    was up 268.23 points, or 0.8%, at 35,043.61, topping the 35,000 level for the first time.
  • The S&P 500
    SPX,
    -0.08%

    was down 4 points at around 4,229.
  • The Nasdaq Composite
    COMP,
    -1.38%

    slumped 200 points, or 1.5%, to about 13,552.

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 after it was the target of a ransomware attack.

See: Suspected Colonial Pipeline hackers say they regret ‘creating problems’: reports

Gasoline futures
RB00,
+0.31%

gave up early gains to briefly turn lower, but were up 0.4% in recent action. Analysts said pump prices may avert a rise if operations are restored within a few days. Colonial said Monday it has a goal of substantially restoring operational service by the end of the week. Oil futures gave up early gains on expectations the incident could chill near-term demand for crude.

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. But those shares were significantly underperforming on Monday, with some of the largest tech companies suffering significant losses.

Shares of Facebook Inc.
FB,
-3.53%

tumbled 3.5%, while Google parent Alphabet Inc.
GOOG,
-1.69%

GOOGL,
-1.73%

shares dropped 1.7% after Citibank analyst Jason Bazinet cut his ratings for both to neutral from buy, citing worries investors were overly bullish on online advertising prospects. 

Among other tech heavyweights, Apple Inc.
AAPL,
-1.40%

shares were down 1.2%; Netflix Inc.
NFLX,
-1.59%

fell 1.3%; and Tesla Inc.
TSLA,
-4.79%

dropped 3.6%.

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,
1.595%

was up 1 basis point at 1.576% 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,
    +7.68%

    jumped nearly 7% after the German biotechnology group, which co-developed the first COVID-19 vaccine to win regulatory approval with Pfizer Inc.
    PFE,
    +1.40%
    ,
    on Monday reported a surge in revenues.
  • U.S. Foods Holding Corp.
    USFD,
    -4.36%

    reported earnings and revenue that topped forecasts and said it wouldn’t provide guidance due to pandemic-related uncertainty. Shares were down 2.7%.
  • Shares of Energizer Holdings Inc.
    ENR,
    +0.18%

    rose 0.9% after the battery maker delivered results that blew past Wall Street forecasts.
  • Marriott International Inc.
    MAR,
    -3.18%

    shares were down 2.6% after the hotel operator announced earnings that beat estimates but revenue that fell short.
  • Shares of Tyson Foods Inc.
    TSN,
    -1.09%

    fell 1.8% 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,
    -0.09%
    ,
    a measure of the currency against a basket of six major rivals, was off 0.2%.
  • Oil futures were little changed, with the U.S. benchmark trading near $64.91 a barrel. Gold futures
    GC00,
    +0.32%

    edged higher, up 0.5% near $1,840 an ounce.
  • The pan-European Stoxx Europe 600
    SXXP,
    +0.10%

    rose 0.1%, while London’s FTSE 100
    UKX,
    -0.08%

    gave up 0.1%. 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,
    -13.04%

    dropping sharply following the airing of a heavily hyped episode of “Saturday Night Live” guest-hosted by Tesla CEO Elon Musk. Ether
    ETHUSD,
    +6.68%

    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

The Wall Street Journal: Some startups that received PPP loans went on to raise hundreds of millions through SPACS

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