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U.S. stocks end higher in 'buy the dip' session

EconomyMay 13, 2021 09:31PM ET
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© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri

By Stephen Culp

NEW YORK (Reuters) - Wall Street ended sharply higher at the close of a broad rally on Thursday, bouncing back from three straight days of selling on upbeat labor market data.

All three major U.S. stock indexes notched solid gains, with the S&P 500 enjoying its biggest percentage gain in over a month. The Nasdaq, weighed by Tesla (NASDAQ:TSLA) Inc, picked up the rear.

Meanwhile, cyclical shares, which stand to benefit most from economic revival, enjoyed the biggest gains.

Recent economic data has prompted inflation fears as scarcity of both materials and workers threatens to send prices surging in the face of a demand boom.

"If this is a footrace, supply chains are still tying their shoes," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. "But they will catch up with demand fairly quickly."

But on Thursday, investors appeared to be focusing on the glass-half-full side of the demand/supply equation.

This was evidenced by the outperformance of small caps, chips and transports, economically sensitive stocks that stand to gain as the United States emerges from the pandemic recession.

"Sectors and stocks that were hurt most significantly by yesterday's sell-off rebounded strongly today given that economic growth is expected to remain strong throughout the year and any inflation is likely to be temporary," Carter added.

New applications for unemployment insurance continue to fall, according to jobless claims data from the Labor Department that hit a 14-month low.

Labor Department data also showed producer prices surged last month, building on the inflation surge narrative of Wednesday's consumer prices report.

"The inflation boogeyman is back right on cue," Carter said. "And will continue to spook markets for the coming months."

But rising prices were widely anticipated, and the U.S. Federal Reserve has provided repeated assurances that it does not foresee those spikes morphing into sustained, long-term inflation.

The Dow Jones Industrial Average rose 433.79 points, or 1.29%, to 34,021.45, the S&P 500 gained 49.46 points, or 1.22%, to 4,112.5 and the Nasdaq Composite added 93.31 points, or 0.72%, to 13,124.99.

Of the 11 major sectors in the S&P 500, 10 ended green, with industrials enjoying the largest percentage gain.

Energy, weighed by a drop in crude prices, was the sole loser, shedding 1.4%. [O/R]

Walt Disney (NYSE:DIS) Co shares were down nearly 5% in after-hours trading after posting quarterly results.

Dating app owner Bumble Inc tumbled 14.3%, falling below its initial public offering price, as investors remained cautious about how quickly users will return to in-person meetings.

Boeing (NYSE:BA) Co rose 0.8% after gaining approval from U.S. regulators for a fix of an electrical grounding issue.

Tesla continued its slide, dropping 3.1%, the heaviest drag on the Nasdaq, after boss Elon Musk doubled down on his sudden rejection of cryptocurrency bitcoin.

Advancing issues outnumbered declining ones on the NYSE by a 1.91-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored advancers.

The S&P 500 posted 13 new 52-week highs and no new lows; the Nasdaq Composite recorded 49 new highs and 201 new lows.

Volume on U.S. exchanges was 11.50 billion shares, compared with the 10.53 billion average over the last 20 trading days.

U.S. stocks end higher in 'buy the dip' session
 

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Comments (33)
kaveh kls
kaveh kls May 14, 2021 6:34AM ET
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Ron Raymond
Ron Raymond May 14, 2021 4:42AM ET
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Fed reassures no worries about inflation nor future dollar devaluation. Stimulus money will help pay for rising prices. Eventual collaspe of US monetarry system no matter what the Fed does will ot matter either. Keep buying until we all of us are starving and violence increses like it never has been before anywhere. Our future is bliss.
Adam Paine
Adam Paine May 13, 2021 11:49PM ET
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where's the April margin debt reporting? oh, I guess it doesn't matter if the market has a Trillion in borrowed money floating around. no risk there! lol
rweqrwq rwqrwqrwq
rweqrwq rwqrwqrwq May 13, 2021 11:42PM ET
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these headlines are the best comedy in the world
scott clawson
scott clawson May 13, 2021 3:26PM ET
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more lies from the MSM and corrupt politicians
Todd Gray
Todd Gray May 13, 2021 3:26PM ET
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up beat jobs data? I think were below the 08 jobs low. and, below the 1929 crash low. with a much longer projected timeline to full employment. it's an amazing fraud; how much factual data the media leaves out of every single story they pitch. there isn't enough money on earth, for me to lie like that to the world.like always, the media narrative will suddenly turn to the dark side of the facts, and a lot of better people than they, will be unprepared and hurt, because the media really only cares about itself. pretty soon, buying the dip will precede no more buyers. in this country, the way it is today, we could have a hyper crash.
scott clawson
scott clawson May 13, 2021 1:40PM ET
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more lies from the corrupt Media on the corrupt scam market.
Ra Su
Ra Su May 13, 2021 1:14PM ET
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have you even graduated high schools ? This is one of the worst jobless claims.
Brandon Bell
Brandon Bell May 13, 2021 1:04PM ET
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Hyperinflation and good jobs report, what possible negative consequence could this have in a market that is moved solely based on actions of the Fed with interest rates?
Brandon Bell
Brandon Bell May 13, 2021 12:49PM ET
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Last week: Wallstreet up on bad jobs report due to Fed rate fears. This week: Wallstreet up on good jobs report after highest inflation data in decades ignoring Fed rate fears.
Brandon Bell
Brandon Bell May 13, 2021 12:49PM ET
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*Last week: Wallstreet up on bad jobs report due to relief of Fed rate fears.
Dániel Hári
Dániel Hári May 13, 2021 12:46PM ET
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Is it alright that all my tech stocks are down during a "tech boost"? :D
Haseef Husain
Haseef Husain May 13, 2021 12:46PM ET
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yeah..mine too
Adam Paine
Adam Paine May 13, 2021 12:46PM ET
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don't drink the kool-aid. chip shortage will decimate every peripheral device
Edward Shaw
Edward Shaw May 13, 2021 12:38PM ET
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This is nonsensical. Just a week ago the market pumped due to a bad jobs report. How in the world is hyperinflation and fewer jobless claims good for the market if the market is pretty much just moving based on likelihood pf rate increase? This entire market bubble is reliant on the fiat bubble and interest rates staying at zero. They have to keep hyperinflating the currency to help wallstreet and eliminate the middle class for their socialist/communist agenda.
Mario tragik
Mario tragik May 13, 2021 12:15PM ET
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Lol these headlines. just stop, its the same as if you write "stocks rebounded because, why not?" you do not have q clue and just make bs to try to make sense of it.
Kate Davis
Kate Davis May 13, 2021 12:01PM ET
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If they can fake a president election, they can fake EVERYTHING!
Jay Jay
Jay Jay May 13, 2021 12:01PM ET
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What is fake is Kate Davis sipping on the Trump juice. not to mention this vague reference of "they"
William Bailey
William Bailey May 13, 2021 12:00PM ET
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My dog ran up a hill , the cat ran down, the rat are the cheese .... Good reasons to sneeze . Thats why
John Shiels
John Shiels May 13, 2021 11:20AM ET
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Suddenly the jobs were there all along.
William Bailey
William Bailey May 13, 2021 11:20AM ET
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Well , the jobs dont pay and wont because of inflation and no profit to be made . Fed made a mess
Yi Li
Yi Li May 13, 2021 11:15AM ET
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Can you guys stop making up wrong reasons trying to explain market moves?
Stan Smith
Stan Smith May 13, 2021 11:07AM ET
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And just like that Inflation is no longer an issue!..Thanks FED
Frederick Chotsky
Chotsky May 13, 2021 11:06AM ET
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whew .. inflation is no longer a problem. I was worried for a minute.
Yoyogi Shark
Yoyogi Shark May 13, 2021 11:03AM ET
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One day jobless claims will be 0 - when everyone is already jobless and on welfare. Bullish for stocks.
Mike Chen
Mike Chen May 13, 2021 11:01AM ET
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Powell don’t have to explain about CPI data because market goes up!
Stan Smith
Stan Smith May 13, 2021 10:58AM ET
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Problem is 16 million + are already collecting
Ravi Bhandari
Ravi Bhandari May 13, 2021 10:48AM ET
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very informative and really helpful to take right market decision
Steffen vdm
Steffen vdm May 13, 2021 10:47AM ET
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If the stock market was a real person, he/she would be put on medication under the supervision of two psychiatrists and put under duress as he/she cannot think logically
Ravi Bhandari
Ravi Bhandari May 13, 2021 10:46AM ET
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what to say, how market changed in less than 24 hours
 
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