The S&P 500 closed at another record high yesterday and the NASDAQ composite index jumped, as investors shook off concerns about the halt in Johnson & Johnson’s COVID-19 vaccine rollout and strong U.S inflation. The drug maker’s shares hit a one-month low before recovering some losses to close down 1.3%, as calls for pausing the use of its COVID-19 vaccine after six women developed rare blood clots dealt a fresh setback to efforts to tackle the pandemic. The news came as U.S data showed the consumer price index (CPI) in March rose by the most in more than 8-1/2 years, kicking off what the majority of economists expect will be a brief period of higher inflation. U.S futures initially dropped on the J&J news, but pared losses after the CPI data. Solid demand for yesterday’s U.S Treasuries issue pushed down yields further, highlighting investors’ lack of concern about any imminent bump in interest rates. The Dow Jones Industrial Average fell 68.13 points or 0.2%; the S&P 500 gained 13.6 points or 0.33% and the NASDAQ added 146.10 points or 1.05%.
Dow Jones Industrial Average The Dow Jones Industrial Average declined 0.20%. The best performers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 2.41% or 3.16 points to trade at 134.40 at the close. Meanwhile, Boeing Co added 1.45% or 3.62 points to end at 253.14 and Salesforce.com Inc. was up 1.40% or 3.21 points to 231.97 in late trade. The worst performers of the session were International Business Machines, which fell 2.50% or 3.37 points to trade at 131.22 at the close. Nike Inc. declined 2.28% or 3.12 points to end at 133.52 and Johnson & Johnson was down 1.32% or 2.13 points to 159.51.
NASDAQ 100 The NASDAQ index climbed 1.05%. The top performers on the NASDAQ Composite were Mackinac Financial Corporation which rose 59.53% to 21.01, Novocure Ltd which was up 49.66% to settle at 197.37, and vTv Therapeutics Inc. which gained 33.07% to close at 3.420. The worst performers were Avenue Therapeutics Inc. which was down 23.91% to 5.41 in late trade, Adapthealth Corp which lost 19.57% to settle at 29.75, and Lucira Health Inc. which was down 18.70% to 8.87 at the close.
Oil
Oil prices settled higher in yesterday’s trading session on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth. U.S crude oil futures gained 48 cents, or 0.8%, to $60.18 a barrel. We’ve been trading in a range, and need clear demand data and direction on U.S inventories to break out of this trough. China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery, as global demand picked up amid progress in COVID-19 vaccinations. Import growth surged to the highest in four years. Crude oil imports into China jumped 21% in March from a low base a year earlier as refiners ramped up operations. The Organization of the Petroleum Exporting Countries in its monthly report raised its forecast for 2021 oil demand growth by 70,000 barrels per day from its previous forecast to 5.95 million BPD, or 6.6%.
Precious and Base Metals
Gold prices rebounded yesterday from their lowest levels in more than a week after data showing a sharp rise in U.S inflation bolstered bullion's appeal as an inflation hedge and weighed on the dollar. Spot gold was 0.7% higher at $1,744.33 per ounce after earlier dipping to $1,722.67, its lowest mark since April 5. U.S gold futures rose 0.7% to $1,743.90. We needed to see some inflation to get gold moving and we saw it this morning with that CPI number. U.S consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation. The U.S dollar slipped to three-week lows after the data, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also drifted lower. Further supporting safe-haven gold were concerns raised by U.S. health officials' decision to recommend a pause in the use of Johnson & Johnson's COVID-19 vaccine. At the moment, we need to see a decisive breakout above $1,765 in order to spark another wave of buying up to $1,800. The $1,750 level has been a strong resistance, so we're getting up near that level. Adding that geopolitical risk tied to news of Iran stepping up its nuclear enrichment had also sparked a lot of buying of gold and silver. Silver rose 2.1% to $25.36 per ounce, while palladium gained 0.5% to $2,689.67 after climbing to its highest level since March 18 at $2,710. Platinum fell 1.1% to $1,157.31 per ounce, having earlier dipped to its lowest price in about two weeks at $1,155. Copper’s turbo-charged rally has stalled over the last few weeks as funds have taken profits and physical buyers have refused to chase prices higher. Yet there is real tightness in the copper market. It’s just that it’s playing out upstream in the opaque raw materials segment of the supply chain.
Traditional Agricultures
Corn and soybean futures rose in yesterday’s trading session, bouncing back from two days of declines on bargain buying by investment funds and concerns about tight supplies of both commodities. Wheat futures also firmed, with concerns about dry soils limiting U.S and European production underpinning prices. Corn and soybean futures found support at key technical points overnight.
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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