Stocks Climb on Stimulus Hope After Weak Jobs Data: Markets Wrap
(Bloomberg) -- Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Biden’s $1.9 trillion coronavirus relief package. The dollar fell.
The House adopted the budget resolution that cleared the Senate early Friday, paving the way to pass a stimulus bill with only Democratic votes. The S&P 500 climbed to another record in its best week since November as every major group but technology rose. The surge in GameStop Corp. after Robinhood Markets Inc. removed limits on buying the stock did little to repair the video-game retailer’s weekly plunge of 80%. Two-year Treasury note yields matched an all-time low amid a drop across shorter-dated rates.
The recovery in the U.S. labor market disappointed for a second month as modest job growth highlighted the persistently difficult prospects for millions of unemployed Americans. Nonfarm payrolls increased by just 49,000 after a downwardly revised 227,000 December decline. President Biden gave the strongest indication yet he’ll push for stimulus without Republican support, saying Friday’s weak economic data show the risk of doing “too little.”
“The market is going to be in a bad news is good news scenario -- bad news is temporary and likely to be met with additional support,” said Steve Chiavarone, portfolio manager and equity strategist at Federated Hermes. “Many investors would have a very hard time selling a market when they know vaccination is coming and they know additional stimulus is coming. It’s just really hard to sell that.”
In corporate news, Pinterest Inc. surged as the digital scrapbooking and search company reported sales that topped estimates. In the meantime, Peloton Interactive Inc. sank after saying said it can’t keep up with surging demand for its exercise machines and warning that profit will be squeezed.
These are some of the main moves in markets:
- The S&P 500 climbed 0.4% as of 4 p.m. New York time.
- The Stoxx Europe 600 Index was unchanged.
- The MSCI Asia Pacific Index increased 0.9%.
- The Bloomberg Dollar Spot Index decreased 0.6% to 1,131.11.
- The euro climbed 0.7% to $1.2048.
- The Japanese yen strengthened 0.2% to 105.38 per dollar.
- The yield on 10-year Treasuries rose three basis points to 1.17%.
- Germany’s 10-year yield climbed one basis point to -0.45%.
- Britain’s 10-year yield jumped four basis points to 0.482%.
- West Texas Intermediate crude climbed 1.3% to $56.96 a barrel.
- Gold rose 0.9% to $1,810.46 an ounce.
- Silver added 1.8% to $26.84 per ounce.
©2021 Bloomberg L.P.