{"id":228353,"date":"2021-04-15T22:37:18","date_gmt":"2021-04-15T19:37:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dow-crosses-34000-mark-as-stocks-head-to-new-record-highs\/"},"modified":"2021-04-15T22:37:18","modified_gmt":"2021-04-15T19:37:18","slug":"dow-crosses-34000-mark-as-stocks-head-to-new-record-highs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dow-crosses-34000-mark-as-stocks-head-to-new-record-highs\/","title":{"rendered":"#Dow crosses 34,000 mark as stocks head to new record highs"},"content":{"rendered":"

“#Dow crosses 34,000 mark as stocks head to new record highs<\/strong>”<\/p>\n

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The Dow Jones Industrial Average crossed the 34,000 mark Thursday as US stocks rallied toward records after a suite of encouraging data showed how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting.<\/p>\n

The S&P 500 was 1% higher at 4,167 in afternoon trading and on track to surpass its all-time high of 4,141.59 set on Tuesday. The Dow was also on pace for a record, up 279 points, or 0.8%, at 34,010. The Nasdaq composite was 1.2% higher, as of 2:32 p.m. Eastern time.<\/p>\n

Expectations are very high on Wall Street that the economy \u2014 and thus corporate profits \u2014 are in the midst of exploding out of the cavern created by the pandemic, thanks to COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve. Report after report on Thursday only bolstered those expectations.<\/p>\n

One report showed that\u00a0U.S. retail sales jumped 9.8% in March<\/a>\u00a0from February, blowing past economists\u2019 forecasts for 5.5% growth. Much of the surge was due to $1,400 payments from the U.S. government\u2019s latest economic rescue effort hitting households\u2019 bank accounts. Economists said it shows how primed people are to spend as the economy reopens and conditions brighten. That\u2019s huge for an economy that\u2019s made up mostly of consumer spending.<\/p>\n

Another report gave an encouraging read on the job market, showing\u00a0576,000 people app<\/a>lied for unemployment benefits last week. That\u2019s well below the 700,000 that economists had forecast and down from 769,000 the prior week. It\u2019s also the lowest the number has been since the pandemic.<\/p>\n

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\"Lower
Lower first-time jobless claims and increased hiring are seen as helping to spur investor confidence.<\/figcaption>
Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

Adding to the optimism, more big U.S. companies reported even healthier profits for the first three months of 2021 than analysts had forecast. Expectations are already high for this earnings reporting season, which unofficially got underway on Wednesday and could result in the strongest growth in more than a decade.<\/p>\n

\u201cYou\u2019ve got various pockets of the market now starting to show a broadening recovery,\u201d said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.<\/p>\n

BlackRock, PepsiCo and\u00a0UnitedHealth Group<\/a>\u00a0all reported bigger profits for the first quarter than analysts expected. BlackRock rose 1.9%, PepsiCo was flat and UnitedHealth climbed 3.7%.<\/p>\n

Even\u00a0Delta Air Lines<\/a>, which reported weaker results for the start of 2021 than expected, highlighted areas of optimism. It said it could return to making profits by late summer if the recovery it\u2019s seeing in air travel<\/a> continues. Its shares fell 3.1%.<\/p>\n

With growth expectations so high, some investors are worried about the possibility that inflation could swing upward and stay high. If it were to sustain itself, high inflation could send bond prices tumbling, hurt corporate profit margins and trigger volatility across markets worldwide.<\/p>\n

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\"Strong
Strong stock market debuts for corporations like Coinbase are signs to many that the economy is making a comeback.<\/figcaption>
Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

The bond market remained notably calm following Thursday morning\u2019s stronger-than-expected reports, and longer-term yields actually fell to the surprise of some analysts. The yield on the 10-year Treasury dropped to 1.54% from 1.63% late Wednesday. Earlier this month, it had gotten as high as 1.75%.<\/p>\n

It\u2019s reminiscent of what happened earlier this week, when\u00a0a report on the Consumer Price Index<\/a>\u00a0came in higher than expected. It would have made sense if the worse-than-expected inflation report had caused investors to sell bonds and send yields higher, but they largely shrugged it off.<\/p>\n

Analysts still expect bond yields to tick higher as the year goes on and the economy continues recovering, along with investors shifting money into sectors that will see a greater benefit from the recovery.<\/p>\n

\u201cWhen you\u2019re thinking about GDP growth, it\u2019s really hard to see why the 10-year shouldn\u2019t be higher,\u201d Samana said.<\/p>\n

The surprising reaction may be a result of how unpredictable data can be as the pandemic and government efforts to counteract it distort everything. And, for now at least, the numbers seem to be pointing toward more strength.<\/p>\n

The falling yields helped send financial stocks to some of the market\u2019s sharpest losses, because lower long-term interest rates limit the profits banks make from lending.\u00a0Bank of America<\/a>\u00a0fell 3.5%, and\u00a0Citigroup<\/a>\u00a0slid 1%, for example, even though both had earlier in the day reported stronger profits for the first three months of 2021 than expected.<\/p>\n

In European stock markets, Germany\u2019s DAX returned 0.3%, and France\u2019s CAC 40 rose 0.4%. The FTSE 100 in London gained 0.6%.<\/p>\n

In Asia, Japan\u2019s Nikkei 225 rose 0.1%, South Korea\u2019s Kospi gained 0.4% and Hong Kong\u2019s Hang Seng slipped 0.4%. Stocks in Shanghai fell 0.5%.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Dow crosses 34,000 mark as stocks head to new record highs” The Dow Jones Industrial Average crossed the 34,000 mark Thursday as US stocks rallied toward records after a suite of encouraging data showed how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are…<\/p>\n","protected":false},"author":1,"featured_media":228354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/04\/dow-crosses-34000-mark.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[102131,74694,73977,5069,72388,5071],"class_list":["post-228353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-15-21","tag-consumer-spending","tag-dow-jones-industrial-average","tag-economy","tag-stock-market","tag-unemployment"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/228353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=228353"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/228353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/228354"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=228353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=228353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=228353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}