The Dow Jones Industrial Average hit a milestone at 35,000, marking the latest in a string of all-time highs Monday as the broader market saw a mixed performance, with the tech-heavy Nasdaq Composite down sharply as high-profile Big Tech shares tumbled.
What are major indexes doing?
was up 230 points, or 0.7%, at 35,007, topping the 35,000 level for the first time.
The S&P 500
was down 7 points at around 4,225.
The Nasdaq Composite
slumped 221 points, or 1.6%, to about 13,529.
On Friday, stocks shook off a much-weaker-than-expected April jobs report Friday, with the Dow and S&P 500 both ending at records, while the Nasdaq Composite outpaced its major benchmark peers but still posted a weekly loss.
What’s driving the market?
Stocks were mixed on Monday afternoon, as a blockbuster earnings season was winding down and as investors weigh how much of the economic recovery already has been priced into stocks.
“Our point of view is that there are a lot of stocks that are extremely stretched in terms of valuations,” said Sandi Bragar, managing director at Aspiriant, a wealth management firm.
Bragar’s not worried about the pace of the economic recovery or a pullback of central bank’s monetary support this year, but she is worried that with “yields on bonds so low and stocks so high,” that financial markets could be poised for a lot more volatility, “which we haven’t seen that much of this year.”
Analysts said Friday’s disappointing April jobs report, which saw U.S. nonfarm payrolls rise by 266,000 versus a consensus forecast for an increase of 1 million, continued to provide a positive backdrop for equities.
“In our view, the jobs report shows a surprising pause in the labor market recovery, coming at a time when the underlying fundamentals and alternative data are pointed towards acceleration,” wrote analysts at Credit Suisse, in a note.
“Nevertheless, this report should delay any discussion of withdrawing accommodation until a decisive labor market rebound takes place,” they said. “As such, we continue to expect positive equity returns, but at the expense of increased near-term volatility.”
Investors were tracking developments around a cyberattack on a vital pipeline that delivers around 45% of fuel consumed on the East Coast. Georgia-based Colonial Pipeline over the weekend said it closed the pipeline after it was the target of a ransomware attack. On Monday, Colonial said it was aiming to “substantially” restore operations by the end of the week.
were up 0.4% in recent action. Analysts said pump prices may avert a rise if operations are restored within a few days. Colonial said Monday it has a goal of substantially restoring operational service by the end of the week. Oil futures ticked higher in afternoon trade, amid lingering concerns that the incident could chill near-term demand for crude.
Tech and other growth-oriented stocks, which are expected to grow earnings faster than their peers, were buoyed Friday as the jobs data sparked a retreat for Treasury yields. But those shares were significantly underperforming on Monday, with some of the largest tech companies suffering significant losses.
Meanwhile, a strong earnings season was moving into its final stage.
Through Friday, 88% of S&P 500 companies had reported earnings covering the first quarter, according to FactSet. The index is now reporting the highest year-over-year growth in earnings since for the first quarter since 2010, said John Butters, senior earnings analyst at FactSet, in a note.
Analysts also expect double-digit earnings growth for the remaining three quarters of 2021. These above-average growth rates are due to a combination of higher earnings for 2021 and an easier comparison to unusually weak earnings in 2020 due to the negative impact of COVID-19 on numerous industries, Butters said.
Which companies are in focus?
Trade Desk Inc.
shares tumbled 26% Monday, after the provider of advertising buying services reported better-than-expected first-quarter profit and revenue and announced a 10-for-1 stock split.
Share of Chipotle Mexican Grill Inc.
were down 1.6% after the company outlined wide ranging compensation incentives, including boosting hourly crew member wages to $11 to $18 per hour.
American depositary receipts for BioNTech SE
jumped 7.7% after the German biotechnology group, which co-developed the first COVID-19 vaccine to win regulatory approval with Pfizer Inc.
on Monday reported a surge in revenues.
U.S. Foods Holding Corp.
reported earnings and revenue that topped forecasts and said it wouldn’t provide guidance due to pandemic-related uncertainty. Shares were down 3%.
Shares of Energizer Holdings Inc.
rose 0.5% after the battery maker delivered results that blew past Wall Street forecasts.
Marriott International Inc.
shares were down 3.1% after the hotel operator announced earnings that beat estimates but revenue that fell short.
Shares of Tyson Foods Inc.
fell 0.5% after the protein manufacturer reported fiscal second-quarter earnings and sales that beat expectations.
What are other markets doing?
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was off 0.1%.
Oil futures were little changed, with the U.S. benchmark trading near $64.97 a barrel. Gold futures
closed slightly higher, up 0.3% to settle at $1,837.60 an ounce.
The pan-European Stoxx Europe 600
closed up 0.1%, while London’s FTSE 100
gave up 0.1%. In Asia, Hong Kong’s Hang Seng Index
fell 0.1%, while Japan’s Nikkei 225
rose 0.5% and the Shanghai Composite
Crypto assets were in focus, with parody coin dogecoin
dropping sharply following the airing of a heavily hyped episode of “Saturday Night Live” guest-hosted by Tesla CEO Elon Musk. Ether
coins that run on the Ethereum blockchain, however, were trading near records above $4,000.