(ABM FN-Dow Jones) The American stock markets were closed predominantly lower on Monday, with tech funds in particular being the victim. The S&P 500 closed 1.0 percent lower at 4,188.43 points and the Dow Jones index fell 0.1 percent at 34,742.82 points. Tech stock market Nasdaq fell 2.6 percent to 13,401.86 points.
The Dow Jones index shot past 35,000 points during the day, but eventually closed below, after the index already closed at a record level on Friday despite a much weaker than expected US jobs report for April.
Analysts said Friday’s jobs report, which showed that the number of jobs increased by only 266,000 from a projected increase of 1 million, provides a positive boost for stock markets.
“The jobs report shows a surprising pause in the labor market recovery, while underlying fundamentals and other macro data point to an acceleration of growth in the economy,” said Credit Suisse analysts. “Nevertheless, this continues the discussion about the scaling back of expanded measures [door centrale banken] until a significant and stable recovery can be seen in the US labor market, “said the market researchers.” As a result, we expect continued price gains, but with increased volatility. “
According to market analyst Naeem Aslam of AvaTrade, interest rate fears have also eased after the weak report. The US ten-year interest rate was higher on Monday at 1.595 percent after the interest rate dropped below 1.50 percent on Friday.
Meanwhile, the danger of rising inflation has not passed, says Derek Halpenny of MUFG Bank, given rising wages in the US, but also higher commodity prices and supply chain problems.
“The stock markets are ignoring that, but it is a growing risk,” said the market strategist.
According to market analyst Naeem Aslam of AvaTrade, the US vaccination rollout is still progressing well and will hopefully bring more Americans back into the labor market.
In addition, “investors are more positive about the Federal Reserve’s dovish policy,” said Aslam, referring to diminished interest-rate fears as the US labor market seems weaker than expected.
Monthly reports from OPEC and the International Energy Agency will follow later this week.
Looking at the overall market picture, JPMorgan Asset Management market strategist Mike Bell further pointed out that the markets have come a long way and are moving up in a fairly straight line. That also means, according to Bell, that the hurdle that must be overcome in order to rise further is growing.
Nordea Asset Management macro strategist Sebastien Galy thinks investors are reluctant to invest further in expensive growth stocks like tech. More focus is placed on sectors that can benefit from the economic recovery and the lifting of lockdowns, such as the banking, travel and leisure sectors.
The euro / dollar was slightly higher on Monday at around 1.2142.
The oil price rose slightly on Monday after a volatile session. At a settlement of $ 64.92, a barrel of West Texas Intermediate became fractionally more expensive.
With that, oil prices lost much of the profits from earlier in the day. Investors tried to estimate the impact of a cyber attack on a US oil pipeline company, Colonial Pipeline, which shut down pipelines. Colonial Pipeline serves much of the East Coast of the US.
Company news
BioNTech will set up a new Asian headquarters in Singapore to produce more corona vaccines and other medicines. The office should be operational by 2023. This afternoon, the German pharmaceutical company announced its quarterly figures. In the first quarter of 2021, sales were significantly higher, mainly thanks to the proceeds from the corona vaccine that it developed together with Pfizer. Annual sales rose from 27.7 million to more than 2 billion euros, with revenues from corona vaccine BNT162b2 amounting to approximately 1.75 billion euros. The share rose approximately ten percent.
Hotel chain Marriott made a loss in the first quarter, but saw an increasing demand for hotel rooms now that more and more people have been vaccinated against the corona virus. The adjusted profit of $ 0.10 was slightly better than expected, but sales were slightly disappointing. The share fell more than four percent.
Shares Tyson Foods took a step back after the meat producer presented better-than-expected earnings and sales figures for the second quarter of its current fiscal year. Tyson Foods did, however, warn against increasing margin pressure as a result of rising inflation.
Ford is recalling over 620,000 units of its 2016-19 Ford Explorer in North America due to roof rack issues. They can come loose, which is dangerous for other road users. No accidents have yet been reported, Ford said. The share lost just under one percent.
The Trade Desk posted higher than expected profit and turnover in the first quarter of this year, but the share of the software company nevertheless fell sharply. The share of the American software company, which provides a technology platform for ad buyers, fell a whopping 26 percent on Monday evening.
Benson Hill goes public through a merger with a so-called Spac, in a deal worth $ 2 billion. The company develops technologies to make crops grow faster.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999. –
From Beursplein 5, the editors of ABM Financial News the developments on the stock markets, and the Amsterdam stock exchange in particular, closely. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
