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Summary
- S&P 500 dropped 0.06%, Dow Jones fell 0.71%, and NASDAQ gained 0.76%.
- Google to spend US$7 billion on offices and data centers, hire 10,000 staff.
- JPMorgan to purchase US$410 million stake in China Merchants Bank’s subsidiary.
Benchmark US indices trimmed losses to close the week with a modest decline on Friday after energy, technology, and consumer-cyclical stocks picked up steam as bond yields fell.
The S&P 500 dropped 0.06% to 3913.10. The Dow Jones Industrial Average fell 0.71% to 32627.97. The NASDAQ Composite Index gained 0.76% to 13215.24, and the small-cap Russell 2000 rose 0.88% to 2287.55.
Stocks oscillated between gains and losses for much of the week amid rising bond yields and inflation worries. The stimulus checks began to arrive in the bank accounts of beneficiaries early this week, setting off a spending spree that is expected to re-energize the economy.
According to a survey on card-payment data, spending on flight tickets, restaurants, hotels, gyms, and spas has picked up. More businesses are open now with the lifting of restrictions. Economists have raised their GDP growth forecast to 5.95 percent for 2021, from 4.87 percent predicted in February.
The Federal Reserve said on Friday it will allow expiring its covid-era policy on the bank's cash reserve ratio which allowed them to hold more assets for emergencies. The decision reflects its confidence in the recovery. However, it said it will come up with a long-term policy to the rule.
Meanwhile, Google has said that it will spend US$7 billion on offices and data centers and hire at least 10,000 staff in the US as part of its expansion plan this year. The tech giant had seen significant growth during the pandemic last year. The hiring will help ease the stress on the labor market.
JPMorgan has evinced interest in buying a major stake in a wealth-management subsidiary of China Merchants Bank. The US banking giant has agreed to purchase a $410 million stake in the company.
In Friday’s session, energy, utilities, healthcare, technology, consumer cyclicals, and consumer non-cyclical stocks gained, while shares of real estate, basic materials, industrials, financials pulled back.
Pic Credit: Pixabay.
Also read: 2 Top Cybersecurity Stocks To Buy In 2021
Top Gainers
Top performers on S&P 500 are FedEx Corp (6.10%), Occidental Petroleum Corp (5.56%), Dollar General Corp (5.02%), and Target Corp (4.42%). On NASDAQ, top performers are Supercom Ltd (54.48%), Clovis Oncology Inc (47.74%), Hall of Fame Resort & Entertainment Co (46.52%), and Foghorn Therapeutics Inc. (36.61%). On Dow Jones, Home Depot Inc (2.10%), Walmart Inc (1.33%), Salesforce.Com Inc (1.30%), and UnitedHealth Group Inc (0.98%) were among the leaders.
Top Losers
Top laggards on S&P 500 included Visa Inc (-6.24%), Chubb Ltd (-5.29%), Travelers Companies Inc (-4.80%), and Extra Space Storage Inc (-4.35%). On NASDAQ, Idera Pharmaceuticals Inc (-62.00%), NuZee Inc (-21.37%), Wisekey International Holding AG (-17.48%), and Lexinfintech Holdings Ltd (-16.29%) were the losers. On Dow Jones, Visa Inc (-6.24%), Travelers Companies Inc (-4.80%), Nike Inc (-3.97%), and Caterpillar Inc (-2.34%) were the laggards.
Image Source: EODHD/Others, S&P 500 Six-Month price chart, March 19, 2021.
Volume Movers
Top volume movers are Apple Inc (74.13mn), Exxon Mobil Corp (48.16mn), Coca-Cola Co (40.35mn), Merck & Co Inc (37.40mn), Cisco Systems Inc (34.52mn), AT&T Inc (33.32mn), Bank of America Corp (32.19mn), HP Inc (31.56mn), Wells Fargo & Co (28.81mn), JPMorgan Chase & Co (27.83mn), Clovis Oncology Inc (45.40mn), Tellurian Inc (34.74mn), NXP Semiconductors NV (29.88mn), Intel Corp (27.17mn), Microsoft Corp (24.51mn), Caesars Entertainment Inc (24.23mn), ViacomCBS Inc (23.34mn), Gevo Inc (22.20mn), and Coca-Cola Co (40.35mn).
Futures & Commodities
Gold futures were up 0.66% to $1,743.90 per ounce, silver prices dropped 0.08% to $26.330 per ounce, and copper shed 0.13% to $4.1025.
Brent oil futures were up 2.01% to $64.55 and WTI crude gained 2.43% to $61.46 per barrel.
Bond Market
The 30-year treasury bond yields were down 1.56% to 2.437, while the 10-year bond yields added 0.25% to 1.725.
US Dollar Futures Index was up 0.10% to 91.958.
Also read: Suncor (TSX:SU) Stocks Soar On New Investment: Good Time To Buy?
The US Centers for Disease Control and Prevention (CDC), which is spearheading the government’s pandemic efforts, in its latest guidelines on Friday eased the physical-distancing norm for schoolchildren following recent improvements in the situation. The latest guideline reduces the distance between students from six feet to three feet in classrooms, letting more return to class.
According to an estimate, household savings in the US have risen from US$1.4 trillion recorded in February 2020 to US$3.9 trillion in January 2021. This will boost consumer spending, a major driver of the US economic growth. The US$1.9 trillion stimulus plan is expected to further push growth.
