The S&P 500 and the Dow edged lower yesterday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S airlines and AT&T, along with mixed readings on economic data. Investor sentiment gradually improved by early afternoon, with seven of the 11 main S&P 500 sectors rising. The S&P 500 healthcare sector hit a fresh record high, while industrials were the biggest gainers. Supporting the mood was data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April. Investors are now awaiting quarterly results from technology behemoths next week to provide markets with some direction. Shares of Apple Inc. rose 0.3%, helping the tech-heavy NASDAQ remain afloat.
Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.94%. The best performer of the session on the Dow Jones Industrial Average was Salesforce.com Inc., which rose 0.39% or 0.89 points to trade at 231.45 at the close. Meanwhile, McDonald’s Corporation added 0.34% or 0.78 points to end at 233.04 and Visa Inc. Class A was up 0.07% or 0.15 points to 227.60 in late trade. The worst performers of the session were Dow Inc., which fell 6.01% or 3.90 points to trade at 60.92 at the close. Walgreens Boots Alliance Inc. declined 2.72% or 1.47 points to end at 52.58 and JPMorgan Chase & Co was down 2.12% or 3.19 points to 147.35.
NASDAQ 100
The NASDAQ index lost 0.94%. The top performers on the NASDAQ Composite were Ocugen, Inc. which rose 42.77% to 9.2800, Codiak BioSciences Inc. which was up 35.41% to settle at 15.87, and Qualtrics International Inc. which gained 22.92% to close at 41.57. The worst performers were Evolus Inc. which was down 18.94% to 9.50 in late trade, Tiptree Inc. which lost 13.01% to settle at 12.37 and Sleep Number Corp which was down 11.92% to 110.04 at the close.
Oil
Oil futures finished with a slight gain yesterday, after falling to their lowest intraday levels in more than a week before reversing course, as traders tried to assess the impact on energy demand of the recent surge in COVID-19 cases in Asia in particular. Despite the pessimism seen this week, the overall oil demand remains robust in two of the largest oil markets, the U.S and China. Data Thursday showing new U.S jobless claims now at pandemic lows strengthens that optimism. Despite the rapidly rising cases in India, economic activity, road traffic, and energy consumption remain well above the levels seen last year. Economic activity and oil demand are not expected to decline to the levels seen last year, even though the COVID-19 cases are far greater. West Texas Intermediate crude for June delivery tacked on 8 cents, or 0.1%, to settle at $61.43 a barrel on the New York Mercantile Exchange after tapping a low at $60.61. For oil prices to build up again, it will take global signs of recovery, and such indications are now scarce in key Asian countries.
Precious and Base Metals
Gold slipped 1% yesterday, retreating from a two-month high, as an uptick in the dollar and U.S Treasury yields hurt the metal's appeal, while palladium lingered near an all-time high. Spot gold was 0.7% lower at $1,780.36 per ounce, after hitting its highest since Feb. 25 at $1,797.67. U.S. gold futures dipped 0.7% to $1,780.90. $1,800 was a bit of psychological resistance, so we've come back with tests. The dollar and the 10-year yields are both a little bit higher and that's pressuring gold as well. The dollar was up 0.1% versus a basket of other major currencies, with the 10- year yield rising as far as 1.587%. Gold has dropped 6% so far this year, mostly pressured by rising yields. The downside in gold is likely to be short-lived amid central bank buying and increasing demand for physical gold from China and India. Switzerland in March recorded its biggest monthly gold exports in ten months as shipments to India jumped. But clouding that outlook was a record COVID-19 surge in the country. Also, dimming bullion's appeal was data showing a drop in claims for unemployment benefits last week, strengthening expectations for another month of job growth in April. Meanwhile, palladium eased off a record high of $2,891.50 per ounce and was last down 1.7% at $2,827.20. Silver slipped 1.6% to $26.14 per ounce and platinum fell 0.7% to $1,205.89. Copper prices in London fell yesterday on subdued demand from physical buyers reluctant to purchase the metal after a 21% rally so far this year, although a softer dollar lent some support. Copper prices have more than doubled since March last year to near a decade high on strong macro and fundamental factors, diminishing appetite from some end-users, especially as an economic recovery in top consumer China slowed.
Traditional Agricultures
Corn, wheat, and soybean futures hit multi-year highs yesterday as concerns about tightening global grain supplies triggered short-covering and fund-driven buying. Wheat futures climbed on unfavorable weather in North America and the prospect of high corn prices boosting demand for wheat in livestock feed. This rally is because corn is in short supply and is likely to remain so in 2021-22.
S o u r c e: News & Quotes (Courtesy: Reuters)
Disclaimer
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
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