Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow Climbs as Strong Jobs Report Keeps Cyclicals in Play; Tech Rebounds

Stock MarketsMar 05, 2021 04:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Yasin Ebrahim

Investing.com – The Dow climbed Friday, as the stronger-than-expected jobs report stoked investor bets for cyclical sectors like energy, while dip buying in tech on weakness also supported sentiment on stocks.

The Dow Jones Industrial Average rose 1.71%, or 528 points, and the S&P 500 rose 1.83%, theNasdaq Composite rose 0.44%, and had been down more than 2% lower intraday.

The U.S. economy created 379,000 jobs last month, well above economists' consensus forecast of 182,000, with the unemployment rate falling to 6.2% from 6.3%, underpinned by easing Covid-19 restrictions and a ramp-up in vaccine distribution. 

"While one report does not make a trend and payroll data are certainly volatile, it's safe to conclude that the winter soft patch is now officially over," Jefferies (NYSE:JEF) said in a note.

Cyclical stocks – those that move in tandem with the economy – were buoyed by signs of a faster recovery, with energy stocks leading to the upside amid rising oil prices.

Oil prices added to their gains from Thursday, when OPEC and its allies decided to keep output steady, prompting economists to up their forecasts on energy prices amid an ongoing tightening in global supplies.

Goldman Sachs (NYSE:GS) raised its forecast on Brent Oil Futures by $5 per barrel to $75/bbl in 2Q and $80/bbl in 3Q21.

"We believe it is now clear that OPEC+ is in fact pursuing a tight oil market strategy, with our updated supply-demand balance pointing to OECD falling to their lowest level since 2014 by the end of this year," Goldman Sachs said in a note.

The rebound in tech also coincided with remarks from St. Louis Federal Reserve President James Bullard acknowledging the recent rise inflation and rates, though downplayed fears about a sustained pick-up in inflation. 

Still, the faster pace of vaccine rollouts and ongoing reopening will boost inflation and likely take rates along for the ride, potentially keeping a lid on growth stocks.

"Well inflation in the reopening sensitive sectors is likely to prove transient, a more sustainable impulse to inflation will start to take shape in 2021, led by shelter inflation healthcare services, and a multi quarter past true of dollar weakness into goods," Morgan Stanley (NYSE:MS) said.  

In other news, Imax (NYSE:IMAX) jumped 13% after its upgraded outlook on performance for 2021 offset mixed fourth quarter results.

Dow Climbs as Strong Jobs Report Keeps Cyclicals in Play; Tech Rebounds
 

Related Articles

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (7)
Daniel Lu
Daniel Lu Mar 05, 2021 4:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nasdeq seems just rise from the bottom after tech selloff and market correction
Elvis Durant
Elvis Durant Mar 05, 2021 3:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ha! strong jobs report????? ha!!! Joke of the Century!
Dump Trump
Dump Trump Mar 05, 2021 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Once again, Joe's positive economic and pandemic policies are driving the markets to near record highs yet again.  And Trump said if Joe was elected, everyone's 401(k)s would crash to all-time lows.  HA!
mat connors
mat connors Mar 05, 2021 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just wait.
Tommy Rommazontz
Tommy Rommazontz Mar 05, 2021 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Has anybody told Joe about this?
Jay Dean
Jay Dean Mar 05, 2021 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't see any jobs myself and millions of others . what about the oil jobs Biden cut, where are the green jobs ??? solar ,wind ? Biden mandates affordable healthcare people can't even afford there utilities or to out food on the table . do people understand the affordable healthcare truly benefits the insurance/big pharma. it didn't help me and my family when it came out . people in my family praised it until it didn't do a dang thing for them but cost them more MONEY.show me the work and I'm trained to work in many industries . I'm on work books in 6 different states waiting for a call the books haven't moved . I'm financially fine so not stressing .
Tommy Rommazontz
Tommy Rommazontz Mar 05, 2021 3:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The authors of these articles are hilarious. They absolutely make up a narrative to support either direction. What a rag.
ZS Beck
ZS Beck Mar 05, 2021 3:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tired to listen all the crying , nobody force anybody to buy or sell. If you don’t like what you see ,them move to a farmland and grow some corn.Oh , maybe thats too boring ....
Mitchel Pioneer
Mitchel Pioneer Mar 05, 2021 1:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fraud and criminal manipulation goes pedal to the metal, as the Friday miracle "rally" unfolds in broad daylight.  Once again, the US Ponzi Scheme, greatest financial fraud in history, and biggest investment farce in the world, sends America into the weekend with a financial knife in their back.
Matt Kay
Matt Kay Mar 05, 2021 1:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Diseased feline upward movement
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email