The NASDAQ index fell more than 2% yesterday as steep declines in mega-cap growth stocks led Wall Street below record trading levels, with investors seeking shelter in more defensive parts of the market. Highly valued technology companies including Microsoft Corp, Alphabet Inc., Apple Inc., Amazon.com Inc., and Facebook Inc. fell between 0.6% and 2.4%. All of the 11 major S&P 500 sectors fell in early trading, with technology, communication services, and consumer discretionary falling more than 1.5% each. The defensive consumer staples, utilities, and real estate sectors fell the least. When you're at all-time highs and the market pulls back, the ones that tend to lead to the downside are often the high-beta stocks such as technology. When we have pauses or pullbacks people tend to move out of growth stocks into more defensive names. Investors also waiting for data through the week, including the Labor Department's non-farm payroll data, slated to be released on Friday.
Dow Jones Industrial Average
The Dow Jones Industrial Average gained 0.06%. The best performers of the session on the Dow Jones Industrial Average were UnitedHealth Group Incorporated, which rose 1.34% or 5.44 points to trade at 411.34 at the close. Meanwhile, Dow Inc. added 2.59% or 1.67 points to end at 66.22 and The Travelers Companies Inc. was up 1.24% or 1.94 points to 158.53 in late trade. The worst performers of the session were Apple Inc., which fell 3.54% or 4.69 points to trade at 127.85 at the close. Salesforce.com Inc. declined 2.94% or 6.58 points to end at 217.18 and Boeing Co was down 0.66% or 1.56 points to 233.63.
NASDAQ 100
The NASDAQ index fell 1.88%. The top performers on the NASDAQ Composite were Cocrystal Pharma Inc. which rose 72.58% to 2.1400, BioLineRx Ltd which was up 52.98% to settle at 4.880, and Neuronetics Inc. which gained 39.21% to close at 14.13. The worst performers were ChemoCentryx Inc. which was down 45.45% to 26.63 in late trade, Sequential Brands Group Inc. which lost 37.66% to settle at 17.0200 and Image Sensing Systems Inc. which was down 23.96% to 8.60 at the close.
Oil
Oil prices rose nearly 1% today, extending overnight gains after industry data estimated U.S crude stockpiles fell much more than expected last week reinforcing bullish views on fuel demand in the world's largest economy. U.S crude futures leaped 60 cents, or 0.9%, to $66.29 a barrel, after climbing to $66.45, its highest since March 8. API figures showed crude stocks fell by 7.7 million barrels in the week ended April 30, according to two market sources. That was more than triple the drawdown expected by analysts polled by Reuters. This should provide some further immediate upside momentum for the market. Traders are awaiting data from the U.S. Energy Information Administration due today to see if official data shows such a large drawdown. If confirmed by the EIA, that would mark the largest weekly fall in the official data since late January. The rise in oil prices to nearly two-month highs has been supported by COVID-19 vaccine rollouts in the United States and Europe.
Precious and Base Metals
Gold prices fell from a more than two-month high on Tuesday, as a rebound in the dollar dented the metal’s safe-haven appeal, while investors speculated that a swifter than expected U.S. economic recovery might prompt an interest rate hike. Spot gold was down 0.4% at $1,786.10 per ounce, after hitting its highest since Feb. 25 at $1,797.75 on Monday. U.S. gold futures fell 0.4% to $1,785.50. A strong dollar is a primary reason for the slight correction. The dollar index rose 0.3%, making gold less attractive for other currency holders. Federal Reserve Chairman Jerome Powell said on Monday the U.S economy is doing better, but it is “not out of the woods yet”. At this stage, it doesn’t really seem particularly market-moving for the Fed to repeat the status quo, the market is now starting to consider when the time for an alternative is going to come. The U.S. central bank wants to keep monetary policy loose for the foreseeable future, but the economic recovery gaining pace has fanned speculations of a pullback in support sooner than expected. Higher interest rates increase the opportunity cost of holding non-yielding bullion. Investors now await April payroll data due later this week for further cues on the U.S. economy’s health. Spot gold may test a resistance at $1,802 per ounce, and a break could lead to a gain to $1,816. Elsewhere, palladium rose 0.1% to $2,973.29 per ounce, after scaling an all-time high of $3,007.73 on Friday. Silver was down 0.3% at $26.79, after hitting its highest since March 1 on Monday, while platinum was steady at $1,230.49.
Traditional Agricultures
Corn rose yesterday to hold near an eight-year high, as weather forecasts showed little sign of rain relief for dry southern Brazil, keeping attention on global supply tensions despite US planting progress. Wheat edged up after dropping more than 2% on Monday as the corn rally underpinned wheat prices, countering pressure from favorable signs for some northern hemisphere wheat harvests, including in Ukraine. Soybeans edged higher as tight oilseed inventories kept the market supported in the face of concern over reduced vegetable oil demand in India due to a surge in coronavirus cases.
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.
No comments:
Post a Comment