Midday Comment — Thursday, May 06, 2021
DJIA: 34,398.18, up 167.84
S&P 500: 4,179.53, up 11.94
Nasdaq Composite: 13,572.43, down 9.99
Stocks most higher in midday trading
U.S. stocks are mostly higher near mid-session Thursday as investors assess the latest unemployment data. The Dow is advancing 167 points to another record high, and poised to notch a weekly gain for the first time in three weeks. The S&P 500 is rising 0.3%. The Nasdaq Composite is bucking the uptrend, down 0.1% and on track to extend a four-session losing streak.
On the data front, first-time unemployment claims came in at 498,000 in the latest week, representing a new pandemic low. Market participants will now await Friday’s jobs report, which is projected to show the U.S. economy added 1 million nonfarm payrolls in April. Treasuries are little changed, with the yield on the 10-year note steady at 1.57%. In commodities, WTI crude is losing 0.6% to $65.24/barrel, easing from its strongest level since mid-March. COMEX gold is rising 1.6% to $1813.40/ounce amid a weaker dollar.
Eight of 11 S&P 500 sectors are trading in positive territory. The Consumer Staples group is outperforming, with Kellogg’s jumping 7.6% after first quarter organic sales unexpectedly grew. Health Care stocks are lagging, with Cardinal Health slumping 10.9% after missing analysts’ expectations on both the top and bottom line. Drugmakers are also under pressure following yesterday’s reports that the Biden administration supported waiving intellectual property protections for COVID-19 vaccines. In other earnings, Etsy is sliding 13.7% after warning that second-quarter sales growth would likely slow from last year’s pandemic-boosted results.
Breadth is negative on issues by 5:4 on the NYSE and 5:2 on the Nasdaq. Composite NYSE volume is 2 billion shares.
Opening Comment — Thursday, May 06, 2021
DJIA: 34,208.15, down 22.19
S&P 500: 4,154.74, down 12.85
Nasdaq Composite: 13,487.67, down 94.75
Stocks Lower, Treasuries Steady
U.S. stocks are lower in early trading Thursday as investors digest weekly jobless claims data and monitor corporate updates. The Dow is down 22 points, but still on course to notch a weekly gain for the first time in three weeks. The S&P 500 is dipping 0.3%. The Nasdaq Composite is falling 0.7%, extending downward momentum after capping its fourth consecutive decline on Wednesday, which was its longest losing stretch since October. Moves remain muted, however, as Wall Street awaits Friday's all-important non-farm payrolls report from the Department of Labor, with the update projected to show 1 million jobs were added to the economy in April.
In the meantime, market participants are assessing this morning's first-time unemployment claims figure, which came in at 498,000 in the latest week, representing a new pandemic low. Treasuries are little changed, with the yield on the 10-year note steady at 1.57%. In central bank news, the Bank of England opted to leave its benchmark rate unchanged, but slowed the pace of its bond buying. In commodities, WTI crude is losing 0.7% to $65.20/barrel, easing from its strongest level since mid-March.
In earnings, Moderna is slumping 8.9% following a mixed first quarter, with shares also being pressured by yesterday's reports that the Biden administration supported waiving intellectual property protections for COVID-19 vaccines. Elsewhere, Etsy is sliding 11.9% after warning that second-quarter sales growth would likely slow from last year's pandemic-boosted results. Breadth is negative on issues by 5:3 on the NYSE and 3:1 on the Nasdaq.
Closing Comment — Wednesday, May 05, 2021
DJIA: 34,230.34, up 97.31
S&P 500: 4,167.59, up 2.93
Nasdaq Composite: 13,582.43, down 51.07
Dow closes at record during mixed session
U.S. stocks fluctuated on Wednesday as investors assessed another round of economic updates and corporate earnings reports. The Dow closed at a fresh all-time high, rising 97 points to 34,230 , while the S&P 500 added 0.1%. The Nasdaq Composite fell 0.4% after toggling between gains and losses, and follows a 1.9% decline on Tuesday that had been its biggest drop since mid-March.
On the data front, the Institute for Supply Management (ISM) revealed the pace of U.S. services sector expansion unexpectedly slowed in April, though the PMI print still represented the second-strongest reading on record. Separately, a report from ADP showed private payrolls increased by the most in seven months in April with a 742,000 addition. Treasuries strengthened, with the yield on the 10-year note down two basis points to 1.57%. In commodities, WTI crude slipped 0.6% to $65.30/barrel as market participants weighed a larger-than-anticipated drawdown in weekly crude stockpiles against a surprise build in gasoline inventories.
Six of 11 S&P 500 are ended in negative territory. In corporate news, shares of Moderna fell 6.2% after the Biden administration voiced support for waiving intellectual property protections for COVID-19 vaccines. Boeing lost 2.3% following a request by the FAA to provide updated proof that its 737-MAX aircrafts would not be impacted by electrical grounding problems. Elsewhere, Under Armour jumped 6.9% following a trio of analyst upgrades. Peloton Interactive slumped 14.6% after the company recalled its treadmill due to safety concerns. In earnings, General Motors and Activision Blizzard climbed 4.1% and 1.6%, respectively, following upbeat quarterly results.