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Dow, S&P 500 Close at Records After Jobs Report Falls Short

Stock MarketsMay 07, 2021 04:11PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Dow and S&P 500 closed at record highs Friday as an unexpectedly weak April jobs report cooled fears the Federal Reserve may be forced to tighten policy sooner than many expect to curb an overheating economy.

The Dow Jones Industrial Average rose 0.66%, or 229 points, to end the day at a record close of 34,777.76. The S&P 500 was up 0.74% to close at record of 4,232.60, and the Nasdaq Composite gained 0.88%.

The U.S. economy created 266,000 jobs in April, below the 770,000 seen the prior month and well short of the 976,000 jobs economists had forecast.

The move cast doubt somewhat on the recovery, and eased fears that the Fed may have to start to talk about tapering its bond purchase.

"So much for 'a string' of 1 million payroll gains. That's what Powell wants to see before he's comfortable talking about tapering. The April miss makes it virtually impossible to get there by the June FOMC meeting," Jefferies (NYSE:JEF) said.

With the Fed's ongoing narrative of lower for longer rate environment strengthened, tech stocks moved higher as fears over a rapid pace of inflation and an overheating eased.

Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), and Apple (NASDAQ:AAPL), ended higher, while Amazon.com (NASDAQ:AMZN) closed below the flatline. 

Corporate earnings, meanwhile, continued to pour in.

Peloton Interactive (NASDAQ:PTON) was flat as exercise equipment maker flagged for a $165 million hit from the recall of its treadmills and cut its outlook on sales and profit. The company also reported first quarter results that topped analyst estimates. 

"[W]hile the recall saga is a tough pill to swallow for investors, the 30% correction is likely overdone," Wedbush said.

Beyond Meat (NASDAQ:BYND) slipped 7% after reporting a wider-than-expected loss of 42 cents per share as revenue fell on a pandemic-led dent in retail and restaurant demand. 

"We continue to be optimistic that a post COVID-19 environment coupled with recent partnerships could lead to improved fundamentals down the road, but the N-T outlook remains still quite challenging, in our view," Oppenheimer said in a note.

Roku (NASDAQ:ROKU) delivered a sanguine outlook on the year ahead after reporting earnings and revenue that beat analyst estimates, sending it shares more than 11% higher.

Dow, S&P 500 Close at Records After Jobs Report Falls Short
 

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Comments (10)
perplexed76 .
perplexed76 . May 07, 2021 11:46PM ET
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From "strong jobs data with quick recovery" to "powell will not leave us with our DOGE, FCB and copper for 10k alone!!" in one day.
perplexed76 .
perplexed76 . May 07, 2021 10:57PM ET
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ahahaha
Catharine Varady
Catharine Varady May 07, 2021 5:56PM ET
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i think the number is purposedly release to counter yellen's recent comment to keep usd low
Mark Jo
Mark Jo May 07, 2021 5:45PM ET
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So now weak job report is a good thing for economy. Go figure.
Tobechukwu Olumba
Tobechukwu Olumba May 07, 2021 5:01PM ET
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This is a weak jobs report for the month of April
Steves View
Steves View May 07, 2021 4:50PM ET
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Are We talking teenagers getting job for summer , Or meaningful Jobs over 100k.  This is like reading a novel with no plot, Just Numbers
Dave Jones
Dave Jones May 07, 2021 4:45PM ET
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the man in the photo doesn't look well
Horladem Micheal
Horladem Micheal May 07, 2021 4:45PM ET
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good
CHAD TENDIES
CHAD TENDIES May 07, 2021 4:41PM ET
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Stocks are not going up. The value of your dollar is going down.
Sean OLeary
Sean OLeary May 07, 2021 4:41PM ET
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Thank you
Mitch Boch
Mitch Boch May 07, 2021 4:27PM ET
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The dow jones drops stocks of companies that don’t perform and replace it with those that do meaning the dow will always rise unless the whole economy tanks. Not a good indicator of anything except showing you the best performing stocks, the top 30 always.
Peter Ballsnbush
BoyYeetzWorld May 07, 2021 4:27PM ET
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The S&P500 entered the chat
Erski Gumby
SB20 May 07, 2021 4:27PM ET
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LOL
 
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