The S&P 500 and the Dow rose on Friday to close at record highs, posting a third straight weekly rise partly on a lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week. Growth names have found their footing over the past two weeks after being outperformed by value stocks for most of the year. A pullback in the 10-year U.S Treasury yield from a 14-month high hit in late March encouraged buying in growth. Data showed U.S producer prices increased more than expected in March, bringing the largest annual gain in 9-1/2 years. Many investors now expect higher inflation as vaccine rollouts help the U.S economy rebound from coronavirus-fueled lockdowns, yet stocks showed little concern as the Federal Reserve has maintained it will allow inflation to overshoot its target. This is why all week long Powell was jawboning, he made sure everyone understood they were expecting a spike and they are ready for it, it wasn’t a surprise.
Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.89% to hit a new all-time high. The biggest gainers of the session on the Dow Jones Industrial Average were Honeywell International Inc., which rose 3.24% or 7.13 points to trade at 226.99 at the close. UnitedHealth Group Incorporated added 3.12% or 11.40 points to end at 376.29 and Salesforce.com Inc. was up 3.00% or 6.73 points to 231.18 in late trade. The biggest losers included Walgreens Boots Alliance Inc., which lost 1.13% or 0.62 points to trade at 54.17 in late trade. Johnson & Johnson declined 1.12% or 1.82 points to end at 161.15 and Boeing Co shed 1.05% or 2.68 points to 252.27.
NASDAQ 100
The NASDAQ index gained 0.51%. The top performers on the NASDAQ Composite were Celcuity LLC which rose 51.15% to 21.63, Affimed NV which was up 23.32% to settle at 9.73 and NCS Multistage Holdings Inc. which gained 19.68% to close at 29.550. The worst performers were Novo Integrated Sciences Inc. which was down 24.38% to 2.730 in late trade, Franklin Wireless Corp which lost 23.54% to settle at 13.2 and Iterum Therapeutics PLC which was down 19.25% to 1.30 at the close.
Oil
Oil prices edged lower in range bound trade on Friday on rising supplies from major producers and concerns over a mixed picture on the COVID-19 pandemic’s impact on fuel demand. U.S WTI crude for May was at $59.38, down 22 cents. Downward pressure has been exerted by the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to increase supplies by 2 million barrels per day between May and July. Favorable oil demand prospects are being largely offset by the expected increase in OPEC + production that could be approximately 2 million barrels per day by the end of July. Meanwhile, U.S. drillers kept the number of oil rigs unchanged this week, energy services firm Baker Hughes Co said on Friday, with analysts forecasting more rigs were needed to keep production steady. Renewed lockdowns in some parts of the world and problems with vaccination programs could threaten the oil demand picture.
Precious and Base Metals
Gold slipped more than 1% on Friday, weighed down by a jump in U.S Treasury yields and a rebound in the dollar, but bullion was still on course for its first weekly gain in three weeks. Spot gold fell 0.7% to $1,743.73 per ounce, after declining as much as 1.4%, having hit its highest price since March 1 at $1,758.45 on Thursday. For the week, however, prices were up about 0.9%. U.S. gold futures slipped 0.8% to $1,744.20. While overall, gold market is bullish short-term, with expectations of a break higher through $1,760-65, caution about fresh 10 and 30-year (Treasury) auctions and the CPI report next week are keeping yields supported, keeping gold's advance in check. Yields are driving most markets at moment, directly impacting USD and stocks, and all three matter to gold with varying impact. The dollar and benchmark U.S. yields rebounded from two-week lows, reducing gold's appeal. U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 years, fitting with expectations for higher inflation as the economy reopens. This type of potentially inflationary environment is generally viewed as supportive for gold. In a potential fillip to gold's safe-haven appeal, U.S Federal Reserve Chair Jerome Powell on Thursday signaled the central bank is nowhere near reducing its economic support, and warned an uptick in COVID-19 cases could slow the recovery. Gold's retreat from last year's peak is a mini-correction in a long bull market. Silver slipped 0.8% to $25.23, while platinum shed 2.8% to $1,195.16. Palladium rose 0.5% to $2,637.00 but was on track for its biggest weekly fall since the week ending Feb. 26. Copper prices were on track for a weekly rise on Friday, as the dollar was headed for its worst week of the year, making greenback-priced metals cheaper for holders of other currencies. The dollar was pressured by unexpectedly strong economic data in Europe and downbeat U.S jobs figures.
Traditional Agricultures
Corn futures climbed on Thursday on export optimism and positioning ahead of the U.S Agriculture Department’s monthly supply and demand report, out on Friday. Wheat gained as frigid temperatures across Europe and the Black Sea region threatened crops.
Source: - 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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