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Summary
- S&P 500 edged up by 0.17%, Dow Jones shrank 0.02%, and NASDAQ rose by 0.38%
- Positive labour data and better economic outlook for 2021 boost investors’ morale.
- Technology, healthcare, and real estate sectors dominate session.
US stock markets ended Thursday’s session on a mixed note, but investor sentiment remained high with positive encouragement from labour data and expectations of better economic growth in 2021.
The S&P 500 edged up by 0.17% to 3916.38. The Dow Jones Industrial Average shed 0.02% to 31,430.70. The NASDAQ Composite Index rose 0.38% to 14025.77 and the small cap Russell 2000 dropped 0.02% to 2281.64.
Investors’ morale got a boost with favourable labour data and expectations of superior economic performance in 2021. The Labour Department said on Thursday that the unemployment benefits, a key gauge for assessing layoffs, have come down to 793,000 last week from 812,000 a week ago.
Jobless claims were at their peak in January. The current number, however, is still higher than the figures recorded in the pre-pandemic era of 2019.
The reopening of businesses has eased the pressure on the job market to some extent, which helped weather the financial difficulties faced by the average American households. The labour data also showed that more businesses have started hiring people in February than in the previous month.
Markets have also welcomed a positive business outlook for the year provided by various forecasters. In a survey, leading economists have expressed optimism for better economic recovery in 2021. They have forecast a 4.9% GDP growth this year, better than the one predicted in January.
Some solid earnings reports have also propelled the markets.
Technology, real estate, academics and educational services, consumer cyclicals, energy, and basic materials segments performed better than the rest during the session.
Image Source: © Lassedesignen | Megapixl.com
Also read: 3 Best Green Energy Stocks to Buy: Renewable Leaders in The Making
Top Gainers
Some of the top performers on S&P 500 included KLA Corp (9.35%), Zebra Technologies Corp (9.14%), Lam Research Corp (7.90%), and Applied Materials Inc. (7.26%). On NASDAQ, RCM Technologies Inc. (66.67%), Borqs Technologies Inc. (58.48%), iFresh Inc. (52.67%), and Ayala Pharmaceuticals Inc. (52.08%) were the best performers, while on Dow Jones, Intel Corp (3.36%), Coca Cola Co (1.81%), Salesforce.com Inc (1.70%), and Visa Inc. (1.33%) were the leaders.
Top Losers
Top laggards on S&P 500 included Molson Coors Beverage Co (10.02%), Lumen Technologies Inc. (7.93%), Tyson Foods Inc. (5.51%), and Pool Corp (5.45%). On NASDAQ, Tilray Inc. (47.80%), Anchiano Therapeutics Ltd. (37.81%), Aphria Inc (30.27%), and Zynerba Pharmaceuticals Inc (29.19%) were among the top laggards. And on Dow Jones, Walgreens Boots Alliance Inc (2.99%), 3M Co (1.55%), Chevron Corp (1.11%), and Goldman Sachs Group Inc (1.08%) were the losers.
Image Source: Refinitiv, S&P 500 YTD price chart, 12 February 2021
Volume Movers
Some of the top volume movers included Sundial Growers Inc (458.4mn), Naked Brand Group Ltd. (57.30mn), Castor Maritime Inc (55.38mn), Apple Inc (8.22mn), Ford Motor Co (6.72mn), and Advanced Micro Devices Inc (5.16mn).
Futures & Commodities
Gold futures were down 0.90% to $1,826.35 per ounce, silver was down 0.01% to $27.05 per ounce, while copper was up 0.15% to $3.7788.
Brent oil futures for April delivery were up 0.96% to $60.89 and crude oil WTI futures for March delivery were up 1.19% to $57.98.
Bond Market
The yield on the US 30-year Treasury bond was up 1.05% to 1.944. The yield on the 10-year US Treasury bond was up 0.54% to 1.158.
US Dollar Index Futures was up 0.03% to 90.392.
Also read: TELUS (TSX:T): The 5G Stock To Buy This Year
Overall, the stock indices have reacted positively to various developments on Thursday. The markets, however, would keenly watch at Washington’s next actions on the economic front.
Although the forecast seemed optimistic for now, much would depend on how effectively Biden’s $1.9 trillion relief package reaches the targeted groups and manages to achieve his set goals.
Efforts to control the virus would also be key in determining the pace of the recovery, a critical element for job growth. Economists forecast that businesses may add 4.8 million jobs in 2021.
