U.S. stocks ended much higher than Friday, but the S&P 500 still booked the biggest weekly drop since February.

U.S. stocks rose faster than Friday after a batch of mixed economic data, starting with gains from October although key indices have been hurting for the week.

Wall Street’s initial optimism was partly predicted for this news Mark and co. MRK,
+ 8.37%
And partner Rizbak Biotherapeutics says their oral antiviral treatment for Covid-1 for has reduced patients’ risk of hospitalization or death by 50% in mild or moderate cases.

How did the stock market index trade?
  • Dow Jones Industrial Average DJIA,
    + 1.43%
    Closed at 34,326.46, up 482.54 points or 1.4%.

  • S&P 500 Index SPX,
    + 1.15%
    It rose 49.50 points, or 1.2%, to 4,357.04.

  • Nasdaq Composite Index Comp,
    + 0.82%
    118.12 points or 0.8% ahead at 14,566.70.

For September, the Dow lost 4.3% and the S&P 500 fell 4.8% to maintain a seven-month winning streak. The Nasdaq Composite was up 5.3%, the worst in a decade in September. In the third quarter, the Dow rose 1.9%, the S&P 500 0.2% and the Nasdaq Composite 0.4%.

This week, the Dow is down 1.4%, the biggest weekly fall since the week ended Sept. 10, according to Dow Jones market data. The S&P 500 lost 2.2% for the week, its biggest decline since the week ended February 2.

What drives the market?

Equity markets were brighter on Friday, leaving the hull after higher gains in the afternoon, as investors valued a batch of mixed data on the U.S. economy.

U.S. personal spending and income further provide evidence that rising costs of goods and services are rising, U.S. inflation is at a 30-year high, and all signs point to price pressures in the coming year.

“People will tell you they’re dark, but they’re not acting like they’re dark,” Randy Frederick, managing director of Charles Schwab Trading and Derivatives, said in a phone interview Friday. “People are still spending.”

The personal spending index rose 0.4% in August, the government said Friday, marking the sixth straight increase. In the 12 months ending August, inflation rose to 4.2% from 3.3% – the highest since 1991, when George HW Bush was president.

The Institute for Supply Management Manufacturing Index also rose to 59.1 from 59.9 in the previous month. A reading of 50 or more indicates improvement in a condition.

“It’s a really good print,” Megan Green, global chief economist at the Crawl Institute, said in a phone interview Friday. “I think most of us were hoping it would get a little slower.”

Prior to this morning’s ISM data, Mark’s experimental drug report helped bulls sue for higher stock, but concerns about the U.S. debt no-ceiling debate in Washington, D.C., could serve as detrimental to its lifting deadline.

“Every day we go where there is no deal with them, it’s another reason for the market to be volatile and to scare people,” Frederick said. “I just hope they fix it soon after.”

Concerned investors dropped stocks on Thursday, relieving some of the news of short-term spending bills to avoid a government shutdown while debt constraints continue. Speaker Nancy Pelosi canceled a planned vote in the U.S. House of Representatives late Thursday night on a 1 1 trillion bilateral infrastructure bill because Democratic lawmakers failed to agree on other joint spending proposals.

In addition to September and the third quarter, the S&P 500 index rose 16% this year, according to factset data.

“As we move into the last quarter of 2021, the profit year to date is still quite modest, which raises the question, how much is left in the tank and whether this October will live up to October’s reputation and will be provided by Michael Hewson, chief market analyst at CMC Markets UK. That said, a huge carbball, as well as an anxiety attack on investors

In a note to clients, he said, “Of course there is a lot of concern about concerns about rising fuel prices, supply-chain disruptions and further persistent inflation.”

Energy prices have risen in continental Asia, including Europe, where China has lost power. Traders are betting on higher crude demand after a report on Thursday said China has instructed state-owned energy companies to ensure winter supplies at all costs.

Which company was the focus?
  • Shares of Merck closed up nearly .4%% on Friday, the company said in a study from the experimental pill Covid-1 reduced the risk of serious illness or death. The agency now plans to submit an application to the Food and Drug Administration for approval of emergency use for treatment and will also seek it from other regulatory agencies around the world.

  • Shares of Greenlain Holdings Inc.. GFL rose 5.5% while Jefferies started coverage with Boca Raton, Fla-based packaging, rolling papers, glass products and grinder canvas edge ratings and a target price of 6. 6.30.

  • Accounting firm PWC will allow all of its 40,000 U.S. client service employees to work remotely and live wherever they please, Reuters reported Friday.

  • Raymond James removes his “strong buy” rating on analyst Aaron Kessler’s stock Alibaba Group Holding Ltd.. BABA though he is getting a little more cautious towards the name. Alibaba shares fell 2.6%.

  • Dollar Tree Inc. DLTR was downgraded from overweight to sector weight in the keybank capital market as analysts expressed concern over high supply discipline and labor costs. Retailers across the board have been affected by port barriers, factory closures abroad and other challenges across the supply chain. Shares of the dollar tree rose about 2.4%.

How have other assets traded?
  • Yield on 10 year Treasury Note TMUBMUSD10Y,
    According to Dow Jones market data, it fell nearly six basis points to 1.464% on Friday, but still rose less than one basis point for the week.

  • The ICE US Dollar Index DXY, the currency measure against a dragon of six major competitors, fell 0.2% on Friday, but rose 0.8% for the week.

  • Oil futures CL00 ended higher, the US benchmark rose 1.1% to settle at .8 75.88 a barrel on Friday. Gold futures also rose, rising about 0.1% to settle at ছোট 1,758.40 an ounce for a small weekly gain.

  • European market, Stocks Europe 600 Index SXXP,
    0.4% lower for weekly 2.2% decline. The FTSE 100 index is down 0.8%, down 0.35% for the week.

  • Nikkei 225 Index NIK,
    2.3% off, down 4.9% for the week. Chinese markets were closed for the Golden Week holiday and will not reopen until next Friday. The Hong Kong market was also closed on Friday.

B Barbara Colmeyer contributed to this report.

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