AUS
NZ
UK
CA
USA
IND
Source:Ronnie Chua , Shutterstock
Summary
- US unemployment rate fell to 6.2 percent in February after 379,000 people joined workforce.
- Chinese social media users blast Nike, H&M over comments on Uyghurs in Xinjiang.
- Chinese listed companies under SEC scanner over auditing standards.
US stocks closed higher on Thursday amid mixed global cues and positive labor data that showed the number of unemployed people fell sharply in February since the pre-pandemic high.
The S&P 500 rose 0.52% to 3909.52. The Dow Jones Industrial Average gained 0.62% to 32619.48. The NASDAQ Composite Index was up 0.12% to 12977.68, and the small-cap Russell 2000 rose 2.29% to 2183.12.
According to the latest labor data on Thursday, unemployment benefits claims, a proxy for layoffs, fell to 684,000 last week from 781,000 in the previous week, the lowest level since the pre-pandemic high of 695,000 as hiring picked up amid increased economic activities.
Economists forecast the recovery to be in full steam in summer since most people would by then have been vaccinated. The steady relief checks to American households have spurred spending, a key contributor to the US economic growth. Besides, the easing of restrictions and vaccination drives have been helping businesses to resume work and hire people.
The data also show that the unemployment rate fell to 6.2 percent in February after 379,000 people joined the workforce, with most hiring taking place in the hotel and restaurant sectors.
Meanwhile, a social media storm against Nike Inc. and Swedish retailer H&M in China weighed on investors’ minds. Chinese social media users have blasted Nike and H&M over their previous comments on the alleged forced labor of Uyghurs in Xinjiang. Both the brands were most discussed topic on Weibo.
An aide of popular Chinese actor Wang Yibo said on Thursday said that the artist ended his contract as a brand ambassador of Nike over the row. Users also called for boycotting Nike and Adidas. Nike (NYSE:NKE) and Adidas (ADDDF) stocks were down 3.5 percent and 4.7 percent, respectively, at 3 pm ET.
The events unfold close on the heels of the US Securities and Exchange Commission’s (SEC) plans to implement stringent laws against Chinese companies failing to maintain auditing standards. According to people familiar with the matter, the Chinese firms may face delisting if found guilty under new rules.
Asian stocks fell sharply after the SEC move. Hang Seng was down 0.27 percent, while Nikkei 225 dropped 2.07 percent at the close. US indices saw mixed gains on Thursday. The stocks of financials, industrials, basic materials, utilities, consumer non-cyclicals, real estate, consumer cyclicals, healthcare, and energy saw gains on Wednesday, while technology shares pulled back.
©Kalkine Group 2021.
Also read: Think Twice Before You Spend Your Bitcoin For A Tesla!
Top Gainers
Top performers on S&P 500 included Darden Restaurants Inc (8.19%), Expedia Group Inc (5.13%), Gap Inc (5.01%), and Westrock Co (4.94%). On NASDAQ, top performers were ProQR Therapeutics NV (62.32%), Koss Corp (57.13%), Immutep Ltd (39.92%), and Houston Wire & Cable Co (37.63%). On Dow Jones, Boeing Co (3.32%), American Express Co (2.79%), Travelers Companies Inc (2.34%), Dow Inc and (1.93%) were among the leaders.
Top Losers
Top laggards on S&P 500 included Discovery Inc (-6.76%), Discovery Inc (-6.42%), ViacomCBS Inc (-5.35%), and Cboe Global Markets Inc (-3.99%). On NASDAQ, Wisekey International Holding AG (-30.51%), Evofem Biosciences Inc (-26.61%), Sequential Brands Group Inc (-23.71%), and Evolus Inc (-23.14%) were the losers. On Dow Jones, Nike Inc (-3.39%), Salesforce.Com Inc (-1.95%), Microsoft Corp (-1.33%), and Merck & Co Inc (-0.22%) were the laggards.
Image Source: EODHD/Others, NASDAQ 5-Year price chart, March 25, 2021.
Volume Movers
Top volume movers are Sundial Growers Inc (29.22M), Cinedigm Corp (22.09M), Apple Inc (21.40M), ProQR Therapeutics NV (17.56M), ViacomCBS Inc (15.53M), Cellect Biotechnology Ltd (14.95M), Immutep Ltd (12.53M), Microsoft Corp (12.13M), Cisco Systems Inc (11.61M), Intel Corp (11.32M), ViacomCBS Inc (15.53M), General Electric Co (12.78M), Microsoft Corp (12.13M), AMD Inc (10.44M), Ford Motor Co (9.92M), Exxon Mobil Corp (9.61M), and American Airlines Group Inc (9.16M).
Futures & Commodities
Gold futures were down 0.45% to $1,725.40 per ounce, silver prices dropped 0.36% to $25.140 per ounce, and copper declined 1.67% to $3.9960.
Brent oil futures were flat at $61.67 and WTI crude dropped 4.64% to $58.34 per barrel.
Bond Market
The 30-year treasury bond yields were up 1.64% to 2.353, while the 10-year bond yields gained 1.19% to 1.633.
US Dollar Futures Index rose 0.42% to 92.915.
Also read: Is Black Gold Entering a Bearish Phase?
Meanwhile, the SEC also has opened a preliminary inquiry into dealings of SPACs, which have become a craze in recent months after a spurt of IPO listings by companies in the US. The regulator has asked banks to voluntarily give details of the deals without seeking a formal probe.
In other developments, the Suez Canal blockade has further escalated supply concerns on Thursday. The busy shipping lane faces major traffic disruption after a crude container vessel lays stranded due to engine failure, port officials said.
The Biden administration officials are considering plans to mitigate the chip shortage. The issue has dogged the electronics and auto industries in North America since January this year.
The recent fire accident at a major Japanese chip plant has increased supply pressure for some US companies, already reeling under the twin blow of covid and cold wave. A top US official said on Thursday that Taiwan would be a key partner in chip development in the long term.
