S&P 500 Update: Nasdaq suffers, energy and financials again outperform
Update after first 90 minutes of trading: Markets continue to be unable to hold any momentum after Monday's stellar gains. The Nasdaq is the biggest faller down 1.37%, the S&P is down 0.5% and the Dow is just ahead by 0.1%.
Sector performance shows energy again the biggest gainer, with financials and industrials the only other sectors in the green. Utilities sector is down 1.85% with technology the next worst performer down 0.9%.
Gainers include DiamondBack Energy up 6%, Lyft up 7%, Hess up 6%, Boeing up 4%, Norwegian Cruise and Carnival both up around 5%.
Losers include Rocket Group down 15%, Etsy down 9%, Moderna down 6%, Chewy down 5% and Teladoc Health down 4%.
Stay up to speed with hot stocks' news!
Here is what you need to know for Wednesday, March 3:
US equities failed to follow on from Monday's strong gains as Tuesday saw all indices close lower. Today is another day and optimism is back on as Texas announces an end to mask-wearing, closely followed by Mississippi. Finally, some light might be at the end of the long tunnel as data from the UK on onward transmissibility once vaccinated looks promising.
Adding further to the optimistic tone is the US 10 year bear going back into hibernation, having earlier woken and shaken equity markets. The US 10 Year yield remains steady at below 1.50 but has roused itself slightly this morning, the problem hasn't quite gone away.
The Dollar is stronger at 1.2050 versus the Euro with Dollar Index up 0.2% at 90.98. Oil bounces to $60.44 as rumours surface of OPEC+ production cuts rolling into April.
European markets are all higher on Tuesday with the Dax up 0.6%, FTSE up 0.5%, and EuroStoxx up 0.4%.
US futures are pointing to a higher Wall Street opening with the Nasdaq up 0.2%, S&P up 0.3%, and Dow Jones up 0.4%.
S&P 500 News
Fed: Lael Brainard, Governor at the Federal Reserve, said that the speed of the move in bond markets "caught my eye" – the first statement of concern about the sell-off in debt from the central bank. Her colleague Mary Daly repeated the message that the move reflects optimism about growth.
US ADP Employment disappoints, comes in at 117k versus 174k expected.
Japan is to extend the state of emergency for Toyko until March 21st.
UK Finance Minister Sunak says the UK is borrowing on an extraordinary scale. Also says the UK economy to recover six months earlier than forecast.
US Senate is due to begin debate on the House-passed stimulus bill as early as Wednesday. Bill includes a $15 minimum wage as President urges Democrats to unite behind the bill.
President Biden says the US will have enough vaccines for every adult by the end of May, previous estimates had been the end of July.
Merck says to help produce JNJ vaccine.
Rocket RKT Mortgage data shows demand cooled last week as rate rises fed through. Refinance deals were up only 7% year on year, down from a 100% growth rate in December according to CNBC.
Lyft saw volumes jump last week as the economy opens up.
ZM Zoom Video Cathie Wood adds more for ARK Invest.
Nordstrom beat estimates, EPS was 7c ahead of forecasts, shares down in pre-market by 2%.
Wendys missed earnings estimates, shares are down in pre-market by 3%.
FuboTV shares are down 8% pre-market. EPS missed estimates while sales beat. Revenue exceeded $100 million for Q4 for the first time ever.
Urban Outfitters beats on EPS but misses revenue. Shares down in the pre-market.
Samsung is looking at four sites in the US for a new chip plant as the global shortage takes hold.
ExxonMobil to cut 7% of Singapore workforce-Reuters.
Boeing raises concerns over Airbus's new design for narrow-body jet saying fuel tank design could pose fire risks-Reuters.
Ups and Downs
Rocket was downgraded by RBC.
Lyft was reiterated by JPMorgan as a top stock pick.
Nextera energy was initiated by Bernstein as outperform.
Tesla, UBS raised its price target for the stock.
Kohls Corp, Evercore ISI raised its price target following earnings, Credit Suisse also increased its price target for the stock.
Target, Jefferies cuts price target for the stock.
Hewlett Packard, JP Morgan, and Raymond James increased price targets for the stock.
Sources: CNBC, Reuters, Benzinga
Economic data due
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
