The Dow Jones Industrial Average crossed the 34,000 mark on Thursday, as US stocks turned toward the record after a suite of encouraging figures showing how hungry Americans were to spend again, how fewer employees would be able to afford their own. Losing jobs and how much fat corporate profits are making.
The S&P 500 was up 1% in afternoon trade at 4,167 and was on track to surpass its 4,141.59 high on Tuesday. The Dow was also on record, up 279 points or 0.8%, on pace at 34,010. The Nasdaq Composite was up 1.2%, as was 2:32 pm Eastern Time.
Expectations are high on Wall Street that the economy – and thus corporate profits – are in the midst of a cave-out explosion created by the pandemic, thanks to the COVID-19 vaccination and massive support from the US government and the Federal Reserve. After the report on Thursday, the report itself destroyed those expectations.
A report showed that US retail sales rose 9.8% in March From February, blowing forecasts of previous economists for growth of 5.5%. The latest economic rescue efforts by the US government led to a huge jump in payments to families’ bank accounts of $ 1,400. Economists said that it shows how people have to spend to reopen the economy and brighten conditions. This is huge for an economy that is mostly made up of consumer spending.
Another report gave an encouraging reading on the job market, with 576,000 people applying for unemployment benefits last week. This is less than the 700,000 that economists had forecast and was below 769,000 the following week. This is the lowest number since the epidemic.
Adding to the optimism, more large US companies also reported health benefits than analysts for the first three months of 2021. Expectations are already high for this earnings reporting season, which was run informally on Wednesday and may be the strongest growth in more than a decade.
Sameer Samana, senior global market strategist at the Wells Fargo Investment Institute, said, “You have started getting different pockets of the market.”
Blackrock, PepsiCo and UnitedHealth Group All reported larger profits for the first quarter than analysts expected. Blackrock rose 1.9%, PepsiCo in flat and UnitedHealth climbed 3.7%.
Till here Delta Airlines, Which reported weaker results for early 2021 than expected, highlighting areas of optimism. It said that if this air travel continues then recovery could turn a profit in the late summer. Its shares fell 3.1%.
With growth expectations so high, some investors are concerned about the possibility that inflation may move upward and remain high. If it happens to sustain itself, high inflation can send a dent in bond prices, damage corporate profit margins and trigger volatility in markets around the world.
The bond market remained particularly quiet following strong-anticipating reports on Thursday morning, and long-term yields actually surprised some analysts. The yield on the 10-year Treasury declined to 1.54% from 1.63% late Wednesday night. Earlier this month, it was up by 1.75%.
It is reminiscent of what happened earlier this week A report on the Consumer Price Index Came more than expected. This would make sense if investors had a reason to sell bonds and send higher yields due to worse reports of inflation, but they turned it down.
Analysts are still hopeful that bond yields will be higher during the year and the economy will continue to improve, as well as investors will have to transfer money to sectors leading to greater recovery gains.
“When you’re thinking about GDP growth, it’s very difficult to see why the 10-year time shouldn’t be longer,” Samana said.
The surprising reaction can be a result of how unpredictable data can be in the form of unpredictable data and the government’s efforts have distorted it all. And, now at least, the number seems to indicate greater strength.
Falling yields helped send financial stocks to some of the market’s steepest losses, as low long-term interest rates limit lending to banks with profitable profits. Bank of america Fell 3.5%, and Citigroup For example, despite registering strong profits in the first three months of 20% compared to the first, for example, 1% slipped.
On European stock markets, Germany’s DAX gained 0.3% and France’s CAC 40 gained 0.4%. The FTSE 100 increased 0.6% in London.
In Asia, Japan’s Nikkei gained 225%, South Korea’s Kospi gained 0.4% and Hong Kong’s Hang Seng gained 0.4%. Stocks in Shanghai fell 0.5%.