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

S&P 500 Inches Higher as Falling Yields Hurt Bank Stocks, Lift Tech

Stock MarketsJul 22, 2021 02:07PM 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 inched higher Thursday,  as technology stocks received a boost from falling Treasury yields following data showing a surprise rise in weekly jobless claims.

The S&P 500 rose 0.17%, the Dow Jones Industrial Average gained 0.08%, or 26 points, the Nasdaq was up 0.30%.

In the week ended July 17, initial jobless claims unexpectedly climbed by 51,000 to 419,000, a nine-week high, confounding economist estimates for a decline to 350,000. Still the move was largely brushed off by some economists, who see it as a one-off and expect the downward trend in claims to resume course.  

“At this point, we're inclined to believe that this is once again a ‘one-off’ situation with this week's back-up in claims as demand for labor remains extremely strong and there is nothing that stands out to us as a reason to have expected layoff activity to rebound. We will be looking for claims to resume their downward trend next week,” Jefferies (NYSE:JEF) said in a note.

U.S. Treasury yields were on the back foot following the data, though recovered some losses intraday. Banks were hit hard amid the stumble yields, but technology racked up gains as lower yields make longer duration, or investments that have a longer payback period attractive.

People’s United Financial (NASDAQ:PBCT), M&T Bank (NYSE:MTB) and Charles Schwab Corp (NYSE:SCHW) were down more than 3%.

In large-cap tech, Microsoft (NASDAQ:MSFT) was in the spotlight, hitting a fresh 52-week high as investors pile into the stock ahead of the tech giant’s quarterly results slated for next week.

“We expect another ‘beat and raise’ special from Redmond with Azure growth numbers (45%+ YoY) that exceed whisper expectations and headline numbers that comfortably exceed the Street's $44 billion and $1.90 estimate,” Wedbush said in a note.

Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN) were higher.

Energy was also a source of pain for the broader market, down nearly 1%, shrugging off rising oil prices amid weakness in Cabot Oil & Gas Corporation (NYSE:COG), Baker Hughes Co (NYSE:BKR) and Valero Energy Corporation (NYSE:VLO).

On the earnings front, Domino’s Pizza Inc (NYSE:DPZ) jumped more than 14% after the pizza chain delivered quarterly results that topped expectations on both the top and bottom lines, driven by its new menu items.

Southwest Airlines (NYSE:LUV) fell 3% as better-than-expected quarterly results were overshadowed by ongoing threat that rising Covid infections pose to travel demand.

S&P 500 Inches Higher as Falling Yields Hurt Bank Stocks, Lift Tech
 

Related Articles

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.
Comments (1)
NUNO LOUREIRO
NUNO LOUREIRO Jul 22, 2021 4:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Goes up lifted by tech, goes up if raising yields benefit bank stocks, goes up if unemployment raises, goes up if a tsunami hits Wall Street, goes up if inflation is up...or down, goes up if a zombie Armageddon happens, don't worry America, the algorithm is stuck in elevator mode.
 
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