por admin » Jue Jun 10, 2021 12:50 pm
Stocks Climb Amid Mixed Economic Data
S&P 500 hovers near record as consumer prices rise 5% in May
Index performance
Source: FactSet
As of June 10, 1:49 p.m. ET
%
NasdaqComposite
S&P 500
Dowindustrials
June 10
1 p.m.
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
By Joe Wallace and Amber Burton
Updated June 10, 2021 1:18 pm ET
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U.S. stocks edged higher Thursday after data showed another leap in consumer prices and a continuing recovery in the labor market as the economy emerges from the Covid-19 pandemic.
The S&P 500 ticked up 0.6%, putting it on pace for a new closing record. The Dow Jones Industrial Average jumped 0.5%, and the technology-focused Nasdaq Composite rose 0.7%. All three gauges edged slightly lower on Wednesday.
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The major indexes have moved in a narrow range just below all-time highs in recent weeks. Investors are balancing optimism in the economic recovery against concerns about inflation and supply shortages, among other risks.
Consumer prices rose 5% in May from a year earlier, the Labor Department said, marking the highest annual inflation rate in nearly 13 years. Investors are seeking to determine whether the acceleration will fade away or prove long-lasting, potentially prompting the Federal Reserve to dial back efforts to stimulate the economy.
Yield on 10 Year Treasury Note
Source: Tullett Prebon
As of June 10, 1:46 p.m. ET
%
April 2021
May
June
1.45
1.50
1.55
1.60
1.65
1.70
1.75
May 19, 2021x1.675%
“As long as we’ve got cheap money, we’ve got a savings glut, not just in the West but in Asia. I think there is decent support for stocks,” said Jane Foley, head of foreign-exchange strategy at Rabobank. “I don’t imagine there is going to be a really serious downturn.”
Inflation expectations have eased in recent weeks, but the issues remains at the top of mind for many money managers. Thursday’s data won’t end the arguments over how inflation may play out over the coming years, Ms. Foley said before the data came out.
“What’s quite stunning given the debate over inflation that has been really dominating market attention this year is that bond yields this week have slipped so far,” she added.
On Thursday, the yield on 10-year Treasury notes edged down to 1.471%. It settled Wednesday at 1.489%, its lowest level in more than three months. A combination of tepid economic data, the Federal Reserve’s message that it won’t quickly withdraw stimulus to ward off inflation, and strong demand for bonds from investors overseas have been dragging yields down, analysts say.
Separate data showed jobless claims, seen as a proxy for layoffs, fell to 376,000 last week, extending a recent decline for unemployment benefits and adding to signs of a healing labor market.
The Nasdaq stock exchange was decorated for Marqeta’s IPO Wednesday.
PHOTO: RICHARD B. LEVINE/ZUMA PRESS
Though, some remain wary of last week’s falling jobless claims.
“I don’t put that much credence in the weekly jobless claims, just because they are volatile and it can be so much that comes into play with it,” said Keith Buchanan, a senior portfolio manager at Globalt Investments. “It’s really tough to have week over week takeaways from a number that’s been notoriously volatile and not really looked at from a week to week basis before the pandemic.”
Thought the trend is clearly positive, Mr. Buchanan said he is looking to see several more weeks of data confirming the optimism.
In corporate news, GameStop shares fell 16%. The original meme stock and videogame retailer said Wednesday it was planning a stock offering after resetting its leadership team.
Oxford Industries, the owner of Tommy Bahama, Lilly Pulitzer and Southern Tide brands, climbed 11% after reporting a first-quarter profit on higher sales.
The euro was less than 0.1% lower against the dollar at $1.2178 after the European Central Bank kept its key interest rates on hold and said it would keep buying bonds at a faster pace than earlier in the year.
Overseas markets were mixed. Despite a decline in travel, leisure and retail stocks, the Stoxx Europe 600 ticked up less than 0.1%, setting another record
Asian markets closed broadly higher. The Shanghai Composite Index ended the day up 0.5%, while Japan’s Nikkei 225 edged up 0.3%.