Stocks Closed Higher After Economic Data
4:06 pm Thursday, September 02nd, 2021
U.S. stocks rose Thursday after fresh data on the labor market and the trade balance showed that the economic recovery remains on track.
The outperformance of the Russell 2000 is largely due to notable strength in the energy stocks, which are rallying with oil prices trading back above $70 per barrel. Large-cap energy stocks are up there, too, with the S&P 500 energy sector trading higher by 3.2%.
No other sector in the S&P 500 is up more than 1.0%, while the information technology (-0.2%), communication services (-0.5%), and real estate (-0.3%) sectors underperform in negative territory. The tech sector is holding back the benchmark index given it’s the most heavily-weighted sector in the market.
Money is finding its way back into the value-oriented stocks, reportedly because the weekly Initial and Continuing Claims report show continued improvement. Both figures decreased to their lowest levels since March 14, 2020, with initial claims checking in at 340,000 (consensus 348,000).
The Treasury market, meanwhile, continues to trade little changed as investors prefer to wait and see for the August employment report tomorrow. That report should hold more influence on trading dynamics than the weekly claims data, more so than usual for Fed-tapering reasons.
The 10-yr yield is trading unchanged at 1.30%, or one basis point lower than where it started the week. The U.S. Dollar Index is down 0.2% to 92.30.
In earnings news, Hormel Foods (HRL), Chewy (CHWY), Five Below (FIVE), and C3.ai (AI) closed sharply lower after underwhelming investors with their results and/or guidance.
Separately, Netflix (NFLX) was breaking out to all-time highs as investors look forward to new content in the coming months.
