Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dow Remains Eases From Record Highs as Tech Gives Up Gains

May 05, 2021 03:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Yasin Ebrahim – The Dow eased from record highs Wednesday, as technology cut some gains, while cyclicals continued to advance despite a surprise decline in US services activity and weaker labor market data. 

The Dow Jones Industrial Average rose 0.29%, or 97 points, after hitting an intraday record of 34,257.75 the S&P 500 was up 0.05%, and the Nasdaq Composite slipped 0.38%.

Tech stocks struggled to hold onto their gains amid ongoing concerns about the impact of rising inflation and an eventual increase in rates. 

Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL) traded in the green, while Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) were lower.

Facebook, meanwhile, was in the spotlight after its oversight board ruled in favor of the social media giant's decision to ban former President Donald Trump, but said the company must make a decision on whether to ban Trump permanently in the coming months.

Energy stocks were pushed higher even as oil prices gave up some gains despite data showing a larger-than-expected draw that strengthened investor expectations for a recovery in demand.

U.S. crude oil stocks slipped by 9 million barrels in the week ended April 30, a much larger decrease than the 2 million barrel drop expected.

Other cyclicals including materials and financials supported the broader market's move higher as optimism over the economy continued despite weaker labor market and services data.

ISM nonmanufacturing data for April fell a reading of 62.7, missing expectations of 64.3.

"The small decline in the headline is slightly surprising, given the surge in spending on services last month as the reopening continued and people spent part of the latest round of stimulus payments, but the level of the index is still the second-highest on record," Pantheon Macroeconomics said in a note.

On the labor market front, private payrolls grew by 742,000 for April, according to a report released Wednesday by ADP and Moody's (NYSE:MCO) Analytics. That missed economists' forecast of 800,000.

The labor market data comes just days ahead of the crucial nonfarm payrolls due Friday. 

Corporate earnings also served up notable moves in the stocks.

Activision Blizzard (NASDAQ:ATVI) climbed more than 1% after reporting first-quarter adjusted EPS of $0.84, driven by net bookings growth that topped consensus estimates amid ongoing demand for its Call of Duty and World of Warcraft franchises. The company also raised its full-year guidance.

General Motors (NYSE:GM) reported first Q1 earnings of $2.25 per share, well above estimates of $1.04 a share, and said it was "highly confident" in its full-year 2021 guidance, sending its shares up more than 3%.

Lyft (NASDAQ:LYFT) reported better-than-expected Q1 results, but came under pressure after President Joe Biden blocked a Trump-era rule that would have made it easier to classify gig workers as contractors. Uber (NYSE:UBER), and Door Dash were also lower.

In other news, Peloton (NASDAQ:PTON) fell 14% as the exercise equipment company recalled its Tread+ and Tread treadmills due to a risk of injury. The recall comes after weeks of negotiations with the U.S. Consumer Product Safety Commission.

Dow Remains Eases From Record Highs as Tech Gives Up Gains

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Mox Mox
Mox Mox May 05, 2021 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Madoff died in prison for doing the same Powell, Bernanke, Yellen, Greenspan and the rest have been doing for decades
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email