Dow Jones and S&P 500 open mixed, but tech stocks win as COVID in Europe struggles markets
Actions were mixed on Friday, as growing concerns over national COVID-19 lockdowns in Europe raised fears of further restrictions beyond the continent.
The Dow Jones and S&P 500 both fell after the opening bell, giving up early pre-market gains, but the Nasdaq composite added 0.2%, supported by the rally in tech stocks.
Markets were volatile after the Austrian government announced a full lockdown from Monday, in response to cases of the COVID-19 outbreak in Europe. The lockdown will include both the vaccinated and the unvaccinated, it will last a minimum of 10 days, but could be extended for another 10 days.
“The news is hitting European markets hard this morning as fears grow that the virus and restrictions will spread again across the continent,” said Jim Reid, chief economist at Deutsche Bank, adding that “the curve could be the United States “given national vaccination rates than in Europe.
âSo while all the headlines are in Europe right now, will the United States be more vulnerable than many European countries throughout the winter? Recent history suggests that the United States has a higher bar for covid economic restrictions, but it also has a lower vaccination rate than their European counterparts, “he added.
Meanwhile, the Nasdaq was boosted by a surge in stocks associated with âhome-basedâ trading that characterized much of 2020. owning assets. Brent crude (CL = F) fell more than 3%, reflecting nervousness that lockdowns will reduce energy demand.
There is no economic data on the calendar. The House of Representatives passed President Joe Biden’s $ 1.75 trillion bill on Friday, but the legislation will be sent to the Senate where negotiations will continue. The bill sets out the Administration’s plans for education, health and the climate.
The appointment of Biden as chairman of the Federal Reserve is also in the spotlight for the markets. Biden told reporters Tuesday to expect the announcement of a Fed presidential candidate in “the next four days.” The White House has not indicated which direction it is leaning, but market participants see two main options: the reappointment of current President Jerome Powell, or the elevation of Fed Governor Lael Brainard.
âSo far the market thinks it will be Powell again, but any change would mean they want to hear a reiteration of monetary policy and future expectations, âSonali Pier, CEO and portfolio manager of Pimco, told Yahoo Finance Live on Thursday.
“[That means] shrinking, being at a rate of around $ 10 billion in treasury bills, $ 5 billion in agency MBS, then subsequently seeing rate hikes but not a significant change to be more hawkish, âhe said. added Pier.
As earnings season is underway, shares in Foot locker (FL) lost ground on Friday, even after the shoe and athletic clothing retailer said it expected the problems of global supply chain persist during this quarter. Shares of Intuit (INTU) climbed more than 12% after the financial software firm’s earnings beat analysts’ expectations and raised its revenue forecast for the year 2021 to $ 1 billion.
9:30 a.m. ET: Stocks mixed, technology drives Nasdaq higher
Here’s where the markets were trading shortly after the market opened on Friday:
S&P 500 (^ GSPC): -6.33 (-0.13%) to 4,698.21
Dow (^ DJI): -214.78 (-0.60%) at 35,656.17
Nasdaq (^ IXIC): +39.95 (+ 0.28%) at 16,038.10
Crude (CL = F): – $ 1.51 (-1.91%) to $ 77.50 per barrel
Gold (GC = F): -4.20 $ (-0.23%) to $ 1,857.20 per ounce
10-year Treasury (^ TNX): unchanged for a yield of 1.6040%
Friday at 7:30 a.m. ET: Equity futures ready for a mixed start
Here’s where the markets were trading on Friday morning:
S&P 500 Futures Contracts (ES = F): -11.75 points (+ 0.25%), to 4,689.75
Dow Futures (YM = F): -194 points (-0.54%), at 35,619.00
Nasdaq Futures (NQ = F): +54.75 points (+ 0.33%) at 16,536.00
Raw (CL = F): -2.65 $ (-3.35%) to 76.36 $ per barrel
Gold (CG = F): +1 $ 1.90 (+ 0.10%) to $ 1,863.30 per ounce
10-year cash flow (^ TNX): -0.5 bps for a yield of 1.529%
6:28 p.m. ET Thursday: Stock futures open higher
Here’s where the markets were trading on Thursday night:
S&P 500 Futures Contracts (ES = F): +0.5 point (+0.11%), at 4,706.50
Dow Futures (YM = F): and +33 points (+ 0.09%), at 35,844.00
Nasdaq Futures (NQ = F): +22 points (+ 0.13%) at 16,503.50