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

S&P 500 Hovers as Industrials Jump; Reddit Short-Squeeze Returns

Stock MarketsMay 27, 2021 03:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 was modestly higher Thursday, following a General-Electric-led rally in industrials stocks and signs of an improving labor market.

The S&P 500 rose 0.11%, the Dow Jones Industrial Average was up 0.38%, or 131 points, and the Nasdaq Composite gained 0.01%.

Industrials were up more than 1%, led by gains in Boeing (NYSE:BA) and General Electric (NYSE:GE) as the recovery in the aviation sector continued to take shape.  Aircraft maker Airbus unveiled a plan to ramp up production of its A320 models per month to 64 by the second quarter of 2023.

Sentiment on the broader cyclicals sector including materials continues to be supported by data signaling an ongoing improvement in the labor market as jobless claims fell to a new pandemic low.

Initial jobless claims fell 38,000 to 406,0000 in the week ending May 22, the lowest level since March 2020. That topped economists estimates for a decline to 425,000.  

"There was a big downward shift in claims in the beginning of April that came as a result of more progression in the reopening process. Since that big drop during the week of April 10, claims have been grinding lower, week by week," Jefferies (NYSE:JEF) said in a note.

Financial were also in the ascendency, with regional banks racking up gains following a renewed ride higher in rates as the 10-year Treasury yield jumped above 1.6%.

Invesco (NYSE:IVZ), Huntington Bancshares (NASDAQ:HBAN), Citizens Financial (NYSE:CFG) were among the biggest sector gainers.

In tech, meanwhile, chip stocks gave up some gains following weakness in Nvidia (NASDAQ:NVDA).

Nvidia's first-quarter results topped expectations, and the chipmaker raised guidance on revenue, but doubts about how much growth was led by hardware demand from cryptocurrency miners flagged concerns about sustainability.

Elsewhere on the earnings front,  Snowflake Inc (NYSE:SNOW) was up more than 2% after reporting better-than-expected quarterly results.

Best Buy Co Inc (NYSE:BBY), meanwhile, rose 2% after lifting its outlook on full-year comparable sales and reporting quarterly results that beat on both the top and bottom lines.

Energy, struggled to advance weighed down by a slip in the oil majors including Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) after losing at least two board seats to activist investor Engine No .1 over its climate strategy.

"While the majority of the board will still be XOM-chosen, this historic defeat is a clear signal that shareholders want to see XOM do more to address climate … which could spark change at the company," Credit Suisse (SIX:CSGN) said.

In a throwback to Reddit meme trade seen earlier this year January, the short-squeeze on Reddit favorite AMC Entertainment (NYSE:AMC) returned as the stock jumped 59%. That big bets on AMC and other reddit names including Beyond Meat (NASDAQ:BYND) and GameStop (NYSE:GME) is here to stay as given "zero commissions, more time at home, and high savings rates," Bank of America (NYSE:BAC) said in a note. There could, however, be decline in activity in the back end of the year as stimulus dries up and the economy fully re-opens. 

In other news, General Motors (NYSE:GM) jumped 5% following a Reuters report that the company is resuming production at five of its plants that were previously shutdown due to the chip shortage.

S&P 500 Hovers as Industrials Jump; Reddit Short-Squeeze Returns
 

Related Articles

Will the Stock Market Bounce Back Last?
Will the Stock Market Bounce Back Last? By StockNews - Jul 27, 2021

Last Monday, the major benchmarks suffered their worst declines of the year. The rising case count for COVID-19, primarily driven by the highly contagious Delta variant, led to the...

3 ETFs to Buy as the Bull Market Makes a Comeback
3 ETFs to Buy as the Bull Market Makes a Comeback By StockNews - Jul 27, 2021

Despite concerns regarding the spread of the COVID-19 Delta variant, the market has made a comeback since its wobble last week thanks to strong corporate earnings. And because the...

Is Pure Storage a Good Tech Stock to Buy?
Is Pure Storage a Good Tech Stock to Buy? By StockNews - Jul 27, 2021

Insiders have been unloading their shares of software-defined data storage solutions provider Pure Storage (NYSE:PSTG), and the stock’s price has declined 13.1% year-to-date....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
 
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