Winthrop Partners Market & Economic Update 5-10-21

The Markets (as of market close May 7, 2021)
Stocks opened generally higher last Monday, with only the Nasdaq (-0.5%) losing ground. The Dow closed up 0.7%, followed by the Global Dow (0.6%), the Russell 2000 (0.5%), and the S&P 500 (0.3%). Losses in consumer discretionary, communication services, real estate, and information technology were offset by gains in energy, materials, health care, industrials, consumer staples, and financials. Crude oil prices rose by more than 1.3%, pushing the price per barrel over $64.40. The dollar and Treasury yields slid.

Tech shares plunged lower last Tuesday, sending the Nasdaq (-1.9%) to its worst single-day performance since March. By the end of trading, only the Dow was able to avoid a losing session — and only barely as it inched up 0.1%. The Russell 2000 fell 1.3%, the S&P 500 dropped 0.7%, and the Global Dow declined 0.6%. Information technology lost 1.9%, consumer discretionary fell 1.2%, and communication services decreased 0.9%. Sectors posting positive returns were materials (1.0%), financials (0.7%), and industrials (0.4%). The yield on 10-year Treasuries declined for the second consecutive day, while the dollar and crude oil prices advanced.

Last Wednesday saw stocks close generally mixed, with the Global Dow (1.1%), the Dow (0.3%), and the S&P 500 (0.1%) posting moderate gains, while the Nasdaq (-0.4%) and the Russell 2000 (-0.3%) fell. Treasury yields continued to fall, as bond prices advanced. Crude oil prices and the dollar declined. Among the sectors, energy (3.3%), materials (1.3%), and financials (0.9%) held up the best, while utilities (-1.7%) and real estate (-1.5%) fell the furthest.
Tech shares rebounded last Thursday, helping to drive stocks higher. The Dow reached a record high, gaining 0.9% by the close of trading. The Global Dow advanced 1.0%, the S&P 500 climbed 0.8%, the Nasdaq gained 0.4%, while the Russell 2000 was unchanged from the previous day. Treasury yields, crude oil prices, and the dollar all declined. Each of the market sectors rose, led by financials, consumer staples, communication services, and information technology.
Tech shares and cyclicals led the way last Friday, pushing stocks higher as both the Dow and S&P 500 reached new highs. The Russell 2000 added 1.4%, followed by the Global Dow, which advanced 1.2%, the Nasdaq climbed 0.9%, the S&P 500 gained 0.7%,and the Dow increased 0.7%. Treasury yields pushed higher for the first time in several
days, crude oil prices rose, while the dollar slid. Energy led the market sectors, with real
estate, industrials, materials, consumer discretionary, and information technology also
advancing.

For the week, the markets may have been aided by strong first-quarter earnings reports
and declining unemployment claims. However, a lower-than-expected number of new
hires in April may lend credence to the Federal Reserve’s suggestion that the economy
is still far from full recovery and accommodative measures are still needed. While tech
shares rebounded at the end of last week, it wasn’t enough to keep the Nasdaq from
falling after closing 1.5% lower. However, the remaining benchmark indexes listed here
advanced, led by the Global Dow, followed by the Dow, the S&P 500, and the Russell
2000. The market sectors were also mixed for the week. Energy (8.9%), materials
(5.9%), financials (4.2%), industrials (3.4%), health care (2.3%), and consumer staples
(1.6%) advanced, while consumer discretionary (-1.2%), utilities (-1.1%), real estate (-
0.9%), and information technology (-0.5%) fell. Communication services closed the
week unchanged. The yield on 10-year Treasuries dipped, crude oil and gold prices
climbed, while the dollar fell.

The national average retail price for regular gasoline was $2.890 per gallon on May 3,
$0.018 per gallon more than the prior week’s price and $1.101 higher than a year ago.
U.S. crude oil refinery inputs averaged 15.2 million barrels per day during the week
ended April 30, which was 225,000 barrels per day more than the previous week’s
average. Refineries operated at 86.5% of their operable capacity last week. Gasoline
production decreased last week, averaging 9.1 million barrels per day. Click here for the entire article: Winthrop Partners Market and Economic Update 5-10-21