The Dow and S&P 500 closed at record highs on Thursday after better than expected weekly jobless claims and retail sales data boosted confidence that the economic reopening is progressing.
US retail sales also surged higher in March, according to data from the Census Bureau. Retail sales surged 9.8%, nearly double economist expectations of a 5.8% gain. The surge higher in retail sales came amid warmer weather and as stimulus checks began to work its way into the US economy. The retail sales data was the strongest since May of 2020.
Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:
The retail investing boom that started amid the COVID-19 pandemic continued into 2021, according to Charles Schwab, which added 3.2 million investor accounts in the quarter. That’s more accounts than Charles Schwab added in all of 2020.
Oil prices were higher. West Texas Intermediate crude jumped 0.33%, to $63.36 per barrel. Brent crude, oil’s international benchmark, rose by 0.4%, to $66.84 per barrel.
US stocks surged to record highs on Thursday following better than expected weekly jobless claims and retail sales data boosted confidence that the economic reopening is progressing.
US retail sales also surged higher in March, according to data from the Census Bureau. Retail sales surged 9.8%, nearly double economist expectations of a 5.8% gain. The surge higher in retail sales came amid warmer weather and as stimulus checks began to work its way into the US economy. The retail sales data was the strongest since May of 2020.
Here’s where US indexes stood at the 9:30 a.m. ET open on Thursday:
Oil prices were lower. West Texas Intermediate crude fell 0.4%, to $62.92 per barrel. Brent crude, oil’s international benchmark, dropped by 0.2%, to $66.44 per barrel.
Futures contracts for the major US stock indices were mixed on Tuesday, hovering near record highs as investors awaited key inflation data from the world’s biggest economy.
S&P 500 futures were edged 0.05% higher after the index finished 0.02% lower on Monday, taking it narrowly below Friday’s all-time high. Dow Jones futures rose 0.1% and Nasdaq 100 futures were roughly flat.
Asian stocks moved broadly higher overnight after data showed Chinese imports and exports rebounded in March. Japan’s Nikkei 225 rose 0.72%, but China’s CSI 300 index slipped 0.16% as a spike in yields on the debt of a major asset manager unnerved investors.
In Europe, the continent-wide Stoxx 600 index rose 0.25%. The UK’s FTSE 100 slipped 0.04% despite data showing the country’s GDP rose 0.4% in February.
Meanwhile, bitcoin soared to an all time high of above $62,000 ahead of crypto exchange Coinbase’s IPO, with renewed institutional interest powering the latest leg higher.
The main event on investors’ radar on Tuesday will be US consumer price index inflation data, due at 8.30 a.m. ET.
Predictions of higher growth and inflation have already caused a spike in bond yields, which have in turn weighed on the fast-growing parts of the stock market like technology shares, which look relatively less attractive when yields rise.
Analysts expect Tuesday’s data to show US CPI inflation rose to 2.5% in March from 1.7% in February.
Inflation “has emerged as a key focal point for markets given the debates surrounding inflation and its implications for monetary policy moving forward,” strategist Jim Reid at Deutsche Bank said.
“Indeed, part of the reason that markets have brought forward their expectations for Fed rate hikes is based around rising inflation expectations that they think the Fed might have to rein in.”
Karen Ward, JPMorgan Asset Management’s chief European strategist, has said she thinks inflation could average 3% over the next 10 years, thanks in part to huge amounts of pent-up savings.
However, Goldman Sachs chief economist Jan Hatzius predicted in a note that underlying US inflation would remain “well below the Fed’s 2% target, consistent with an economy that remains well below full employment.”
Bond yields climbed on Tuesday morning, with the yield on the key 10-year US Treasury note rising 1.5 basis points to 1.691%. Yields move inversely to prices.
Investors will also be keeping an eye on 30-year US Treasury auctions, after 3- and 10-year sales attracted solid demand.
Oil prices edged higher, with Brent crude up 0.4% to $63.54 a barrel and WTI crude 0.3% higher to $59.87 a barrel.
US stocks were mixed on Friday following the release of producer price index data for the month of March, which showed a jump of 1%, and a year-over-year increase of 4.2%.
The higher-than-expected inflation data sparked a rally in interest rates, with the 10-Year US Treasury yield rising five basis points to 1.68%. The jump in interest rates led to a swift decline in the tech-heavy Nasdaq 100.
A spike in inflation has been a key concern for investors as the US economy begins to reopen, as some worry that a runaway inflation scenario could materialize when considering the trillions of dollars in stimulus unleashed on the economy since the beginning of the COVID-19 pandemic.
Here’s where US indexes stood at the 9:30 a.m. ET open on Friday:
Oil prices were lower. West Texas Intermediate crude fell 0.08%, to $59.53 per barrel. Brent crude, oil’s international benchmark, dropped by 0.3%, to $63 per barrel.
US stocks hung around record highs Thursday, with the S&P 500 hitting a new high after insight from the Federal Reserve indicated that monetary policy makers will maintain their stance in supporting growth in the world’s largest economy as it continues to recover from the COVID-19 pandemic.
The S&P 500 index pushed further into record-high territory after reaching a closing peak in the previous session. Technology stocks marched up but blue-chip stocks tracked on the Dow Jones Industrial Average tilted slightly lower.
Stock futures ahead of the open showed little reaction to the Labor Department’s report that weekly jobless claims rose to 744,000, higher than the 680,000 claims expected by economists surveyed by Bloomberg. The report indicated that unemployment remains at persistently high levels, with the previous week’s reading upwardly revised to 728,000 from 719,000.
Here’s where US indexes stood at 9:30 a.m. on Thursday:
Members of the Fed’s rate-setting board expect “it would likely be some time until substantial further progress” on reaching targets of maximum employment and above-2% inflation, according to the minutes from the Federal Reserve Open Market Committee’s mid-March meeting released Wednesday.
“FOMC members were quite positive on short-term growth prospects, but made quite clear that short-term acceleration only goes so far towards their long-term “full employment” goal, suggesting even if growth remains robust through 2Q 2021, we’ll still be in a waiting pattern for Fed policy,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott, told Insider in emailed comments.
“On balance, there was nothing material in the minutes which changes my view of a reduction in [quantitative easing] beginning in early-2022 followed by a potential first rate hike in late-2022,” said LeBas. “I view a 2022 QE reduction as much more likely than a 2022 rate hike,” he said. “If anything, the first hike will be later and the path of hikes steeper than what the markets have currently priced.”
Gold rose 0.6% to $1,753.20 per ounce. Long-dated US Treasury yields fell, with the 10-year yield down at 1.647%.
Oil prices were mixed. West Texas Intermediate crude lost 1% to trade at $59.23 per barrel. Brent crude, oil’s international benchmark, dropped 0.6%, to $62.76 per barrel.
US stocks were mixed Wednesday after Federal Reserve officials agreed to keep policies in place – sticking to near-zero interest rates and monthly bond purchases – during the last meeting of the Federal Open Market Committee in March, even as the economy showed clear signs of a rebound.
Officials, according to the minutes released Wednesday afternoon, indicated that policies will not change simply on forecasts alone. While most of the 18 officials saw developments, they wanted some time to be more convinced of progress, such as stronger employment.
“While generally acknowledging that the medium-term outlook for real GDP growth and employment had improved, participants continued to see the uncertainty surrounding that outlook as elevated,” the minutes said.
The landmark $1.9 trillion stimulus package from President Joe Biden in early March has forced Fed officials to lift their growth and inflation forecast before the meeting.
“The big message from the Fed minutes is that the central bank is as unconcerned in private about inflation as it is in public,” Brad McMillan, chief investment officer for Commonwealth Financial Network, told Insider. “There appears to be no hidden interest in higher rates, suggesting that rates will indeed remain low until unemployment drops down to pre-pandemic levels.”
The US economy has rebounded faster than what most have expected due in large part to President Joe Biden’s landmark $1.9 trillion stimulus package paired with steady vaccine rollout throughout the country, which has helped the labor, manufacturing, and travel sectors recover. The President on Tuesday moved up the timeline for all American adults to be eligible for a COVID-19 vaccine to April 19 from May 1.
The 10-year Treasury yield has held steady at 1.67% after climbing to the highest levels in over a year in March.
“The fact that the bond yields barely changed last week despite a raft of strong economic numbers … indicates that market has already gone a long way to pricing in the economic rebound,” Kathy Jones, Charles Schwab chief fixed income strategist, said in a note. “Also, it is hard to see U.S. yields surge from here since they are so far above those in many other developed markets in both real and nominal terms. With the current wide yield spread, foreign investors should find U.S. yields attractive.”
Mike Owens, sales trader at Saxo Markets, also said the Fed minutes might give better insight on how members envision the economic recovery and when they expect to hike rates.
“If 5-year US Treasury yields break above 1%, they might provoke a squeeze that could send 10-year yields on a fast track to 2%,” he said.
US shares closed lower Tuesday, with the Dow Jones Industrial Average and S&P 500 retreating from record highs reached the previous session. New sell-offs linked to the Archegos Management Capital crisis added to unease in markets even after US data revealed the economic rebound is on track.
Here’s where US indexes stood after the 4:00 p.m. ET close on Wednesday:
Mobile-gaming company AppLovin is targeting a $30 billion valuation for its US initial public offering, with plans to raise as much as $2.13 billion, Reuters first reported. AppLovin, backed by private equity firm KKR, is looking to sell 25 million shares between $75 to $85 each.
West Texas Intermediate crude rose by 0.39% to $59.56 per barrel. Brent crude, oil’s international benchmark, was also up 0.38% to $62.98 per barrel. Oil prices dropped earlier in the week when the Organization of the Petroleum Exporting Countries, or OPEC, said that it will add about two million barrels of oil each day to the market from May to July, easing production cuts.
Bitcoin slipped 4.19% to $55,757.76 as the rally stalls. Sellers outweighed buyers of bitcoin, and the selling spilled over to other cryptocurrencies. Last week, bitcoin flirted with the $60,000-level.
Investor participation in the world’s most popular cryptocurrency soared in the first quarter of 2021 with most of the growth coming from retail investors, according to research from CoinDesk.
Coinbase revenue soared more than 800% year-on-year in the first quarter of this year, the company revealed on Tuesday. This led DA Davidson to reiterate its Buy rating on the company and increase its price target by 125% to $440. Its previous price target for Coinbase was set at $195. Coinbase is set to directly list on the Nasdaq exchange on April 14.
US stocks ended lower on Tuesday, with the the Dow Jones Industrial Average and S&P 500 retreating from record highs reached the previous day.
New trades linked to Archegos added unease to markets after US data highlighted an economic rebound.
Companies linked to the Archegos Capital Management meltdown last week were struck by a new wave of volatility after Credit Suisse initiated a block trade worth around $2.3 billion in an attempt to limit further losses.
Stocks including ViacomCBS, Discovery, and Tencent all whipsawed, and were down in premarket trading before recovering throughout the day.
The S&P 500 and Dow hit record highs Monday in the wake of a better-than-expected jobs report and record-high expansion in the services sector last month. Optimism around the economic recovery continues to drive markets.
Here’s where US indexes stood after the 4:00 p.m. ET close on Tuesday:
US stocks closed at record highs on Monday as investors cheered Friday’s strong jobs report. The stock market was closed on Friday in observance of Good Friday.
The US added 916,000 jobs in March, beating the projected gains of 660,000 as the US economy begins to fully reopen. COVID-19 vaccinations have surged in recent days, with the US recording multiple days of more than 4 million doses administered.
The S&P 500 and Dow Jones Industrial Average touched record highs shortly after the opening bell and steadily increased throughout the day, while the Nasdaq 100 continues to recover from its February decline of more than 10%.
Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:
Palantir jumped higher on Monday by about 3% after it secured a five-year contract with the National Nuclear Security Administration, a US federal agency that is tasked with safeguarding national security through the military application of nuclear science.
US stocks edged higher on Wednesday investors brace themselves ahead of President Joe Biden’s unveiling of a multi-trillion dollar spending plan.
The bill will include major investments into a range of sectors, and investors are absorbing its potential impact on both inflation and earnings as a large part is to be funded with tax hikes on corporations. The bill is part one of two in Biden’s overall infrastructure plan, with the second to be announced in mid-April.
Rising Treasury yields, meanwhile, continue to put pressure on stocks, especially high-growth tech names that soared during the year of the pandemic. The benchmark 10-year US Treasury yield rose to its highest in 14 months on Tuesday, as investors priced in expectations of higher inflation and a stronger US economy.
The US private sector added 517,000 jobs in March, according to ADP’s monthly employment report Wednesday. Economists surveyed by Bloomberg held a median estimate of 550,000 payroll additions. This climb is the third straight monthly gain since payrolls shrank in December. The March gains are also the largest seen since October.
Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:
Stocks affected by the Archegos-linked selloff that roiled markets rallied. ViacomCBS and Discovery were both higher, as well as American depositary receipts of Chinese companies.
Ethereum developers defended a decision to destroy ether tokens and cut the fees paid to miners ahead of major changes this summer. The developers said the changes could boost the cryptocurrency’s price.
West Texas Intermediate crude climbed as much as 0.12%, to $60.48 per barrel. Brent crude, oil’s international benchmark, also rose by 0.42%, to $63.87per barrel. Both benchmarks are on track for weekly losses.
Gold slipped 1.47% to $1,687.47 per ounce. The precious metal slipped below $1,700 on Tuesday for the first time in three weeks, under pressure as long-dated Treasury yields and the US dollar both rise.
US stocks gained on Thursday after weekly jobless claims hit their lowest levels since the COVID-19 pandemic began last year.
Jobless claims of 684,000 beat economist expectations of 730,00 and continued claims fell to 3.9 million for the week that ended March 13.
Stocks were initially off to a rocky start Thursday morning after Fed Chairman Jerome Powell told NPR that the Fed will gradually roll back its monthly bond purchases as the economy continues to improve. The Fed currently purchases $120 billion in bonds per month.
“We will very gradually over time and with great transparency, when the economy has all but fully recovered, we will be pulling back the support that we provided during emergency times,” Powell said.
Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:
The blockage of the Suez Canal continues to disrupt global trade and supply chain issues, and it could take days to unground the Evergreen ship that became stuck due to high winds.
Shares of ViacomCBS extended its two-day decline to nearly 30% after it launched a $3 billion equity offering to fund investments in its new streaming platform, Paramount+.
Bitcoin fell more than 7% and traded just above $51,000 as analysts said the expiration of $5 billion in bitcoin options contracts may be causing volatility.
Oil prices were lower. West Texas Intermediate crude was down 4.4%, to $58.49 per barrel. Brent crude, oil’s international benchmark, dropped by 4%, to $61.84 per barrel.
