Dow Industrials Increase 300 Points, But On Track For Weekly Loss

Stock indexes rose on Friday morning, aiming to mark a second day of gains in a choppy trading week that continues to be marked by concerns about Federal Reserve policy in the face of rising inflation in the recovery COVID of the economy.

How are stock market indices performing?
  • The Dow Jones Industrial Average DJIA,
    + 0.68%
    increased by 306 points, or 0.9%, to 34,392.

  • The S&P 500 SPX index,
    + 0.41%
    rose 25 points, or 0.6%, to trade at 4,184.

  • The Nasdaq COMP composite index,
    + 0.11%
    rose about 48 points, or 0.4%, to trade around 13,583.

For the week, the S&P 500 turned positive, up 0.2%, with Friday’s gains. The Dow Jones was flat for the week, trying to avoid a fourth weekly loss of the last five. The Nasdaq Composite rose 1.2%, ready to break a 4-week losing streak.

What drives the market?

US markets were eyeing a light data day to end another tumultuous week for stocks, with flash readings on manufacturing and services activity hitting record highs.

The readings come after the eurozone purchasing managers’ composite production index for the region climbed to a 39-month high at 56.9, with the services index at a 35-month high , while the manufacturing PMI slipped to a two-month low at 62.8.

The market as a whole was rocked on Wednesday as the nascent crypto market sold off and investors digested a Fed minute reading that raised the specter of the central bank, ending its buying at one point. accommodating assets.

Investors will be looking to hear more from Fed speakers, Dallas Fed Chairman Robert Kaplan, and San Francisco Fed Chairman Mary Daly, who will speak on Friday. Kaplan, in an interview with MarketWatch earlier this month, argued for opening a conversation about the central bank abandoning gas in its support for the economy. Daly said it was too early to start such discussions.

Some investors and strategists are heating up that the price pressures following the COVID pandemic are temporary, which has been attributed to some of the rebound in areas of the market that would be affected by a rapid rise in prices. inflation.

“The idea of ​​temporary inflation seems to be creeping into the minds of the financial community, helping to calm interest in commodities,” wrote Alex Kuptsikevich, senior market analyst at FxPro.

“Additionally, we are seeing politicians from different parts of the world engaging in their ways of tackling the threat of inflation,” the analyst wrote, in a research note.

On the public health front, the number of deaths worldwide caused by the disease transmitted by the coronavirus COVID-19 is likely much higher than official figures suggest, the World Health Organization said on Friday.

“Based on excess mortality estimates for 2020, the 3.4 million deaths currently reported to WHO are likely a significant undercoverage, with actual numbers at least 2-3 times higher,” the report says. .

Which companies are targeted?
  • Actions of Deere & Co. ED rose, after the construction, agriculture and turf maintenance equipment maker reported far better than expected second-quarter tax profit and second-quarter sales, while warning that pressures on the supply chain will grow throughout the year.

  • VF Corp. VFC shares fell after the outerwear and activities company reported fourth-quarter earnings that fell short of expectations.
  • Actions of Foot Locker Inc. FL gained traction after the footwear and athletic clothing retailer reported strong first-quarter tax profit and same-store sales, while announcing it would reposition its store fleet to focus its banner growth emblematic.

  • Actions of Yalla Group Ltd. YALA rebounded from a four-month closing low, after the voice-centric social networking platform in the Middle East and North Africa announced a $ 150 million share buyback program. The buyback program comes as the company continued to challenge recent allegations of short sellers.

  • BioNTechBNTX, chief executive, said the COVID-19 vaccine he developed with a US pharmaceutical group Pfizer PFE is likely to be effective against the Indian variant of the coronavirus.
How are the other assets doing?
  • The yield on the 10-year T-bill TMUBMUSD10Y fell 1.8 basis points to 1.613%. Bond yields and prices move in opposite directions.

  • The ICE US Dollar DXY Index, an indicator of the currency against a basket of six big rivals, rose less than 0.1%.

  • Oil futures rose, with the US benchmark CL00, 2.24% up 2.5%. GC00 gold futures were down 0.3%.

  • The Stoxx Europe 600 SXXP index gained 0.6%, while the London FTSE 100 UKX index was virtually unchanged.

  • Hong Kong’s Hang Seng HSI index fell less than 0.1%, while the Shanghai Composite SHCOMP closed down 0.6% and Japan’s Nikkei 225 NIK rose 0.8%.

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