(Bloomberg) – Stocks tumble from session highs as giants Tesla Inc. and Amazon.com Inc. put pressure on the Nasdaq 100. Traders also looked at the economic data, with inflation remaining the focus of the investment debate. The dollar fell and Treasury bonds rose.
Most of the major groups in the S&P 500 rallied, with gains in commodity and industrial stocks offsetting losses from tech and retail companies. Moderna Inc. rallied after agreeing to provide 500 million doses of Covid-19 vaccine for a vaccination program known as Covax. Berkshire Hathaway Inc. rose as Warren Buffett said Greg Abel, vice chairman of non-insurance companies, would be his likely successor. Estee Lauder Cos. Dropped as sales of the cosmetics giant fell short of expectations.
Growth in US manufacturers eased in April as current supply chain problems and material shortages limited manufacturing efforts and increased backlogs. Manufacturing activity fell to 60.7 from an over 37-year high of 64.7 a month earlier, according to the Institute for Supply Management released on Monday. At the same time, the group’s estimate of the prices paid for materials jumped to the highest level since July 2008, highlighting the lack of resources.
According to Buffett, inflation is “more than people expected six months ago.” Treasury Secretary Janet Yellen, meanwhile, said President Joe Biden’s economic plan is unlikely to generate price pressure. Federal Reserve Chairman Jerome Powell will speak at 2:20 pm Washington time. The April US employment report is due Friday, and some economists predict employers will add 1 million or more jobs, bringing the labor market closer to pre-pandemic levels.
The results are sourced from more than half of the S&P 500 companies, and nearly 90% of companies have exceeded earnings forecasts – they have been at optimal levels since Bloomberg began collecting data in 1993.
“The reporting season, economic recovery and Covid trends will still be a catalyst in the near future – and looking for any indications of a change in course from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory. Services.
According to LPL Financial, ignoring the adage “sell in May and go” could reward equity investors in 2021. The firm cited the S&P 500’s track record over the past decade on its blog. In eight of those years, the indicator has shown gains in the six months ended October. Last year, the rally was 12%, the largest increase since 2009, when the bull market was just beginning. The benchmark showed an average growth of 3.8% over the entire 10 years, up 1.7% from the 1950 average.
Here are some key events to watch this week:
The US trade balance, production orders and durable goods are due to be released on Tuesday. The Reserve Bank of Australia’s monetary policy decision is scheduled for Tuesday. Chicago Fed President Charles Evans will deliver a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gave a virtual speech to the Boston Economic Club, Bank of England rate decision on Thursday
Some of the major moves in the markets are:
The S&P 500 is up 0.4% as of 11:22 am New York time. The Nasdaq 100 fell 0.3%. The Dow Jones Industrial Average rose 0.9%. Stoxx Europe 600 is up 0.5%. The MSCI World Index rose 0.3%.
The Bloomberg spot dollar index fell 0.3%, the euro rose 0.4% to $ 1.2067, and the Japanese yen rose 0.3% to $ 109.03 per dollar.
The yield on the 10-year Treasury bond fell two basis points to 1.61%. The yield on Germany’s 10-year bonds changed slightly and amounted to -0.21%.
West Texas Intermediate crude rose 1.5% to $ 65 a barrel Gold futures rose 1.5% to $ 1,794 an ounce.
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