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S&P 500, Dow end at record highs as weak jobs data eases rate worries

EconomyMay 07, 2021 06:43PM ET
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© Reuters. FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid

By Krystal Hu and Caroline Valetkevitch

NEW YORK (Reuters) - The Dow and S&P 500 hit record closing highs on Friday while registering gains for the week, and the Nasdaq recovered after U.S. jobs data eased concerns over prospects for rising rates.

U.S. job growth unexpectedly slowed in April, likely restrained by shortages of workers, the Labor Department report showed.

The report alleviated some concerns about rising inflation and potentially higher U.S. interest rates, which some investors worry would hurt growth companies with high valuations.

"Growth names that were taken to the woodshed are getting another chance, because they will be perceived to be less risky in an environment where there is a slower recovery, and that's really what the jobs data is indicating", said Tom Martin, senior portfolio manager at Globalt Investments.

Heavily-weighted growth stocks such as Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) rose by 1.1% and 0.5%, respectively, giving the S&P 500 and Nasdaq their biggest boosts.

But gains were broad-based, with all major S&P 500 sectors ending in the green and energy and real estate leading the advance. Energy and materials both hit fresh highs.

The Dow rose 229.23 points, or 0.66%, to 34,777.76, the S&P 500 gained 30.98 points, or 0.74%, to 4,232.6 and the Nasdaq Composite added 119.40 points, or 0.88%, to 13,752.24.

For the week, the Dow rose 2.7%, its biggest weekly percentage gain since March. The S&P 500 gained 1.2%, its best week since mid-April, while the Nasdaq shed 1.5%.

"The anticipation and confirmation of (Federal Reserve) policy staying the same and continued economic recovery with vaccines rollout have fueled these all-time highs, but we do believe the volatility is going to be tightened in the short term," said Greg Bassuk, chief executive at Axs Investments.

A raft of upbeat earnings also helped stocks, and S&P 500 earnings are now estimated to have increased 50.4% in the first quarter from a year ago, which would be the highest growth rate since the first quarter of 2010, according to Refinitiv data.

Payments firm Square Inc (NYSE:SQ) rose 4.2% after reporting a better-than-expected quarterly profit, as surging demand for bitcoin fueled a jump in cryptocurrency transactions on its application.

Streaming device maker Roku (NASDAQ:ROKU) Inc jumped 11.5%following an upbeat revenue outlook, while fitness equipment maker Peloton Interactive (NASDAQ:PTON) Inc gained as it laid out steps to improve the safety of its equipment.

Expedia (NASDAQ:EXPE) Group Inc shares rose 5.2% as analysts raised price targets following the company's upbeat results.

Advancing issues outnumbered declining ones on the NYSE by a 3.27-to-1 ratio; on Nasdaq, a 2.12-to-1 ratio favored advancers.

The S&P 500 posted 164 new 52-week highs and one new low; the Nasdaq Composite recorded 164 new highs and 64 new lows.

Volume on U.S. exchanges was 10.23 billion shares, compared with the 10.11 billion average for the full session over the last 20 trading days.

S&P 500, Dow end at record highs as weak jobs data eases rate worries
 

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Comments (19)
Dmitry Goncharov
Dmitry Goncharov May 07, 2021 2:53PM ET
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Why would people get jobs?
CHAD TENDIES
CHAD TENDIES May 07, 2021 1:45PM ET
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What happens when the fed stops buying assets
Ngosang kplan
Ngosang kplan May 07, 2021 1:45PM ET
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game over
AG MA
AG MA May 07, 2021 1:45PM ET
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Shhh we're not supposed to think that way
Michael Montgomery
Michael Montgomery May 07, 2021 1:45PM ET
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Prob wil never happen they will just taper
Charles Norton
Charles Norton May 07, 2021 1:34PM ET
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Essentially jobs report shows Biden is creating a welfare state.
Benjamin McIntire
Benjamin McIntire May 07, 2021 1:34PM ET
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How does it show that? Can you show us?
Chris Daniel
Chris Daniel May 07, 2021 1:34PM ET
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so are you ready
Charles Norton
Charles Norton May 07, 2021 1:31PM ET
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Here is the title of this articled at the moment: "S&P hits record, Nasdaq jumps 1% as weak jobs data eases Fed tapering worries". Just putting it here since sometimes they come through and re-write them to change the tone and/or get more clicks. The estimated nonfarm jobs was 978k, but there were only 266k added...that is TERRIBLE. But the market goes to all time highs. If anybody doubted the stock market is just a scam where the Fed steals money from the fiat ponzi and puts it into the market this should be confirmation. Bad financial news makes the stock market go up because the market is just a reflection of how much the fed is devaluing the USD at taxpayer expense.
Frederick Chotsky
Chotsky May 07, 2021 1:31PM ET
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Well, now that you know what we've known all along, jump on the gravey train. Or don't, we really don't care.
Dave Jones
Dave Jones May 07, 2021 1:31PM ET
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All aboard!!!
Mitchel Pioneer
Mitchel Pioneer May 07, 2021 12:22PM ET
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And once again, the "rally" walks a tightrope, totally unscathed.  Unlike of course losses that see miraculous, intraday "recoveries."  Looks like they've got the sellers locked in their cages, and the biggest investment joke in history takes another step towards the cliff.
Patrick Joly
Patrick Joly May 07, 2021 12:22PM ET
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Michel, you should buy stocks, it might make you happier.
Kim Andreasen
Kim Andreasen May 07, 2021 12:13PM ET
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Or it's a signal that we're going to see stagflation, which I personally wouldn't rule out. VERY interesting times ahead
UK DAS
UK DAS May 07, 2021 12:12PM ET
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worries about tapering and not worried about people not going at work?? economy will recover automatically
Julio AXA
Julio AXA May 07, 2021 12:10PM ET
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QE = BUG CORRUPTION AND MONEY LAUNDRY, THE BIGGEST FRAUD FED AND GOV IN THE WORLD
Michael McDonald
Michael McDonald May 07, 2021 12:10PM ET
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...clearly never heard of the South African Government.
St Af
St Af May 07, 2021 12:02PM ET
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Selling opportunities becoming apparent. Germany is on the news cutting jobs in Airports and banks. Am i wrong?
Julio AXA
Julio AXA May 07, 2021 12:00PM ET
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BIDEN GOV AND FED SO FAKE AND BIG CORRUPTIONS. BIG MANIPULATION. Punishment yellen and powell. they are BIG FRAUD. so crazy look it. we want a real life, real time, no fake loom goods, but zonk in real life. BULL BUL. BU.LS..T
Benjamin McIntire
Benjamin McIntire May 07, 2021 12:00PM ET
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Lmfao all you can do is rant and complain. Cant even understand what youre trying to say.
MAVERICK TRADING
MAVERICKFX May 07, 2021 11:48AM ET
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Soon the mighty dollar will be replaced by crypto.So sad....
alex gallegos
alex gallegos May 07, 2021 11:48AM ET
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How will gold and silver fair?
St Af
St Af May 07, 2021 11:47AM ET
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If the US dollar is trading lower o.8% and stocks higher by 0.8%, how much is the gain?.....Enjoy your day in this casino !
Mitchel Pioneer
Mitchel Pioneer May 07, 2021 11:41AM ET
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In true form, "investors" come out of the woodwork on a Friday to hold stocks over the weekend, and whisk away nearly the entire NASDAQ loss in one fell swoop.  Meanwhile, record levels of fraud permeate the DOW and S&P.  Assume the proper position America, as the US Ponzi Scheme, greatest financial fraud in history, and biggest investment JOKE in the world, sends the US working class into another weekend with a financial knife in their back.
Stan Smith
Stan Smith May 07, 2021 11:36AM ET
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This is a wacky headline...so bad jobs data means the FED can keep devaluing the currency?
Stan Smith
Stan Smith May 07, 2021 11:36AM ET
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...and any distorted reasoning is great for stocks...
Steve Lora
Steve Lora May 07, 2021 11:26AM ET
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Foodstamp president
Mike Chen
Mike Chen May 07, 2021 10:35AM ET
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Stay home. No work. Paycheck every week. Buy stonks. Make profit everyday. Order ubereat!
Steffen vdm
Steffen vdm May 07, 2021 10:35AM ET
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that's it Mike!
Ron Love
Ron Love May 07, 2021 9:35AM ET
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Not so fast, weenie babies are now selling Nasdaq too.
Vlad Lozovskiy
Vlad Lozovskiy May 07, 2021 8:57AM ET
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Why would people get jobs?  They are paid pretty good for doing nothing.
Randy Lahey
Randy Lahey May 07, 2021 8:57AM ET
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Bingo, collect 'free' money to buy *****and pizza.
tim banks
tim banks May 07, 2021 8:57AM ET
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raise wages and ill get out of bed lol
Randy Lahey
Randy Lahey May 07, 2021 8:57AM ET
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tim banks  how much for you to then also take a shower and have breakfast?
Ferdinando Riboni
Ferdinando Riboni May 07, 2021 8:53AM ET
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Biden don't care
 
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