“‘Another day, another record’, the US stock market continues to validate our optimistic forecasts from last yr, which predicted a strong economy that was driven by consumers emerging from their homes, emboldened by vaccinations or by a belief that the worst of the VirusCasedemic was in the scrapbook”— Paul Ebeling
Wall Street marked milestones Thursday, as a broad market rally drove the S&P 500 to an all-time high and the DJIA crossed above the 34,000 mark for the 1st time.
The rally came as investors welcomed encouraging economic reports showing that Americans are spending again, how fewer workers are losing their jobs and how much bigger corporate profits are getting.
The rally got off to a fast start Thursday as traders liked the latest batch of economic data and corporate earnings reports.
US retail sales spiked 9.8% in March from February, blowing past economists’ forecasts for 5.5% growth. Economists said it shows how primed people are to spend as the economy reopens and the Sun is shining. That is is big jump for an economy that is made up of about 72% of consumer spending.
On the job market: 576,000 people applied for unemployment benefits last wk, well below the 700,000 that economists forecast and down from 769,000 the prior wk.
Adding to the optimism: Big US companies reported healthier profits in Q-1 of Y 2021 than analysts forecast. This earnings reporting season could result in the strongest growth in more than 10 yrs.
With growth expectations high, some investors are worried about the possibility that inflation could swing upward. If it were to sustain itself, high inflation could send bond prices tumbling, hurt corporate profit margins and trigger volatility across markets worldwide.
The bond market remained notably calm following Thursday morning’s stronger-than-expected reports, and longer-term yields actually fell to the surprise of some analysts. The yield on the 10-yr T-Note fell to 1.55% from 1.63% late Wednesday. Low interest rates are a Key driver for this market.
Thursday, the benchmark US stock market indexes finished at: DJIA +305.10 at 34035.99, NAS Comp +180.92 at 14038.79, S&P 500 +45.76 at 4170.42
Volume: Trade on the NYSE came in at 849-M/shares exchanged
HeffX-LTN’s overall technical analysis of the major US stock market indexes is Very Bullish in here.
- Russell 2000 +14.3% YTD
- DJIA +11.2% YTD
- S&P 500 +11.0% YTD
- NAS Comp +8.9% YTD
Looking Ahead: Investors will receive Housing Starts and Building Permits for March and the preliminary University of Michigan Index of Consumer Sentiment (MSI) for April Friday.
Have a healthy day, Keep the Faith!