Week ends in red as the Treasury complies to one-year rates

by

Topline

Technology stocks outperformed the overall market on Friday, but stocks closed a tight week with a small loss as investors watched Treasury yields that continue to move higher, a sign that stock market gains come under higher pressure.

Key facts

The Dow Jones industrial average was virtually flat on Friday, becoming the only major index to post a weekly gain despite climbing just 0.1%, while the S&P 500 and Nasdaq tech fell -heavy 0.2% and 0.3% during the day, pushing weekly losses to 0.7% and 1.6%, respectively.

By going up gains in S&P shares, Deere Inc. shares went up. up 10% on Friday after the agricultural machinery company raised expectations with its fourth-quarter earnings report, posting profits that rose 167% year-over-year (nearly twice what analysts had expected the figure ) and nabbing. a 20% increase in sales, thanks to improving conditions in the farming and construction sectors.

Shares of BioNTech climbed 3% after Pfizer said its Covid-19 two-dose vaccine is stable in temperature typically found in pharmaceutical freezers and refrigeration devices, compared to ultralow temperature storage requirements which is currently in circulation.

After close Thursday, streaming company Roku reported a nearly 60% increase in revenue – still spurred by a pandemic surge in viewers – and a staggering profit of $ 65 million; shares, which rose 3% on Friday, are up more than 200% over the past six months.

Meanwhile, Uber shares fell 2% after the UK Supreme Court ruled that their drivers are entitled to workers’ rights – a decision that will ensure protection as the minimum wage and which could have a significant impact on other riding and delivery services.

Global markets also entered on Friday, with SE Composite Shanghai ending the day up 0.6%, while the FTSE 100 UK rose 0.1% and the German DAX Index 0.8%.

Key background

Incentive expectations, vaccine prospects and successful corporate earnings have pushed the market to new heights since Election Day, but uncertainty stemming from speculative trade frenzy, rising yields and the threat of various new Covid varieties have halted boosted market growth a few weeks ago. Friday ‘s gains come after Finance Secretary Janet Yellen on Thursday visited President Joe Biden’ s $ 1.9 trillion high incentive proposal, which is due to be voted down by the House as soon as next week. Meanwhile, the Johnson & Johnson vaccine is also expected to receive the emergency use permit within a few days, meaning inoculation could go on through March and April.

Quote Cruise

“The market paints a picture of optimism: strong growth, and rising – but not troubling – inflation,” Bank of America economist Michelle Mayor said Friday. “We agree, but there is a fine balance: Strong growth could encourage a faster rise in rates, rising borrowing costs and pressure on risky assets, limiting the upside to economic growth.”

Tangent

Treasury yields jumped ten years – a bellwether of investor sentiment in abruptly moving equity markets with stocks – 40 basis points Friday, reaching their highest levels in a year.

Amazing info

Heading to recent gains, bitcoin rose above market capitalization of $ 1 trillion on Friday for the first time ever among institutional investors.

Further reading

GameStop hearing on market manipulation (Forbes)

Dow drops 200 points after wiping out Walmart earnings and jobless data worse than feared (Forbes)

Is the stock market about to fall? (Forbes)

New unemployment claims hit 861,000 last week – worse than economists expected (Forbes)

.Source