The Dow capped a volatile trading day with strong gains, but losses in the technology sector shoved the Nasdaq deep into the red.
The Dow Jones Industrial Average rose 77.1 points, or 0.6%, to 12927,
the S&P 500 fell 0.69 point, or 0.05%, to 1370 and the Nasdaq
Composite slid 22.9 points, or 0.76%, to 2988.
Overall utilities, often seen as safe-havens, performed the best on the day by a wide margin.
The markets are coming off the worst weekly selloff of the year, in
which the S&P 500 shed 2%. The economic and corporate calendar is
quite full this week.
Retail sales jumped 0.8% in March, more than doubling expectations
for a 0.3% rise. Excluding the auto segment, sales were up 0.8%, topping
estimates of 0.6%.
Dan Greenhaus, chief global strategist at BTIG, as quoted by Foxbusiness,com,
wrote in a note to clients following the report that the report is
"supportive of the moderate pace of consumption growth expected in the
first quarter." Still, Greenhaus warned that the consumption sector is
still likely to be weak in the first quarter as consumers have had to
deal with largely stagnant wages and income.
The pace of expansion of the manufacturing sector in the New York
region slowed down dramatically in April. The New York Federal Reserve’s
regional manufacturing gauge dropped to 6.56 in April from 20.21 in
March, far short of expectations of 18. Readings above 0 point to
expansion, while those below indicate contraction.
"Despite the headline decline in this volatile index, we still see
manufacturing activity as being on a broadly upward trend," analysts at
Barclays Capital wrote in a note to clients.
Disclosure: No position at the stock mentioned above.Print This Article
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