A daily bulletin featuring an overnight sharemarket summary and economic news from across the globe, broadcast in the Morgans studio before the Australian stock market opens each morning.
Friday, 5 March 2021: US equity markets retreated
US equity markets retreated after Federal Reserve Chair Jerome Powell failed to reassure investors that the central bank would keep surging bond yields and inflation expectations in check – Dow settled -346-points or -1.11% lower (at 30,924.14) after tumbling as much as -700-points earlier in the session. Home Depot Inc (down -2.5%) and Intel Corp (-2.62%) were among the biggest drags on the index. The broader S&P500 fell -1.34% (to 3,768.47), paring an earlier -2.5% decline. Information Technology (down 2.26%), Materials (-2.06%) and Consumer Discretionary (-2.02%) all fell over >2% and led nine of the eleven primary sectors lower. Energy remained atop the primary sector leaderboard with a +2.47% gain. Exxon Mobil Corp rose +3.87% after the Chief Executive Officer (CEO) of the energy major, Darren Woods, reiterated the company’s commitment to its dividend. Apple Inc (down -1.58%), Tesla Inc (-4.86%) and PayPal Holdings Inc (-6.27%) were among the largest individual drags on the index. Both the Dow and S&P500 logged their first settlement below their respective 50-day moving averages (30,944.98 and 3,818.61) in over a month The Nasdaq shed -2.11% and fell into negative territory for the calendar year-to-date (down -1.28%). The technology-centric benchmark settled -9.7% below its record closing high on 12 February and fell into correction territory on an intraday basis, down more than 10% from its most recent 52-week high. The small capitalisation Russell 2000 lost -2.76%.
Thursday, 4 March 2021: A fresh rise in Treasury yields weighed heavily on technology stocks
A fresh rise in Treasury yields weighed heavily on technology stocks and dragged the benchmark US equity indices lower – Dow down -121-points or -0.39%, settling near its session low. The broader S&P500 fell -1.31% with Information Technology (down -2.49%) and Consumer Discretionary (-2.38%) both down over >2% and leading eight of the eleven primary sectors lower. Energy (up +1.43%) and Financials (+0.75%) were the leading primary sector performers. The S&P 500 financial and industrial sector indexes touched intra-day record highs. Just five companies - Apple Inc (down -2.45%), Amazon.com Inc (-2.89%), Microsoft Corp (-2.70%), Google-parent Alphabet Inc (-2.37%) and Tesla (-4.84%) – accounted for almost half the S&P500’s decline. Exxon Mobil Corp rose +0.8% after the oil major unveiled plans to grow dividends and curb spending with projections that were less bold than previous years at the company’s Investor Day. The Nasdaq dropped -2.70%, paring its year-to-date gains to +0.85%. Netflix Inc shed -4.95%. The small capitalisation Russell 2000 index lost -1.06%.
Wednesday, 3 March 2021: US equity markets weaker after making a very strong start to March
US equity markets weaker after making a very strong start to March – Dow down -144-points or -0.46%. The broader S&P500 lost -0.81% a day after recording the best single-session performance since 5 June last year. Information Technology (down -1.35%) and Consumer Discretionary (-1.27%) were the worst-performing primary sectors with falls of over >2%, while Materials (up +0.58%) was the only primary sector to advance. The Nasdaq dropped -1.69%, with Apple Inc (-2.09%) and Facebook Inc (-2.23%) both down over >2% . The small capitalisation Russell 2000 index lost -1.93%. Lyft Inc rose +3.8% in extended trading after the company said it had its best week in terms of ridesharing volume since pandemic lockdowns began last year. Lyft also said it expects a narrower earnings before interest, tax, depreciation, and amortisation (EBITDA) loss for the first quarter than it previously forecast.
Tuesday 2 March 2021: US equity markets made a strong start to March
US equity markets made a strong start to March, buoyed by data showing that the manufacturing sector continues to gather steam and with the recent volatility on Treasury markets dying down – Dow gained +603-points or +1.95%, and booking its best daily gain since November last year. Boeing Co (up +5.84%) led the advance, with United Airlines Holdings Inc (+1.20%) said it is buying 25 additional 737 Max planes and taking delivery of other orders earlier than previously planned. The broader S&P500 rallied +2.38%, logging its best single session performance since 5 June last year. Information Technology (up +3.18%) and Financials (+3.12%) gained over >3% to lead all eleven primary sectors higher. Royal Caribbean Ltd fell 2.06% after the cruise operator said it has commenced a US$1.5B public stock offering. The Nasdaq jumped +3.01% to settle with its best single session advance since 4 November. Apple Inc gained +5.37% after all 270 of its stores in the U.S. were open to the public for the first time since last March. The small capitalisation Russell 2000 index jumped +3.43%, recording its sharpest daily percentage gain since 6 January.
Monday, 1 March 2021: US equity markets retreated
US equity markets retreated as investors struggled to shake off concerns around the rapid jump in Treasury yields despite the Personal Consumption Expenditure (PCE) index - the Federal Reserve’s preferred measure of inflation - indicating subdued inflation in January – Dow dropped -470-points or -1.50% (to 30,932.37), dropping back below 1% The small capitalisation Russell 2000 index inched +0.04% higher.
Friday 26 February 2021: