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US STOCKS-Dow ends at record high, Nasdaq falls as tech slides

Stock MarketsMay 06, 2021 05:50
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© Reuters.

* Dow up 0.29%, S&P 500 up 0.07%, Nasdaq down 0.37%
* Energy, materials lead sectoral gains on S&P 500
* Peleton plunges on treadmill recall after injuries, death
* U.S. private payrolls increase solidly in April - ADP

(Updates after market close)
By Krystal Hu and Shreyashi Sanyal
May 5 (Reuters) - The Dow Jones Industrial Average ended at
a record high on Wednesday, driven higher by energy and other
economically sensitive sectors, while the Nasdaq closed in red
as megacap growth stocks slipped.
Strong gains by Goldman Sachs GS.N , Caterpillar CAT.N
and Chevron CVX.N sent Dow to the record. Energy .SPNY and
materials .SPLRCM continued this week's momentum, leading
gains among S&P 500 sectors. Defensive utilities .SPLRCU and
real estate .SPLRCR led sectoral declines.
"Energy, financial, materials, industrials are all
outperforming. They tend to be cyclically oriented sectors and
tend to benefit during periods when the economies are reopening
and expanding," said Terry Sandven, chief equity strategist at
U.S. Bank Wealth Management.
Strong economic data and earnings pushed the S&P 500 and
Nasdaq indexes to record high last week, but markets have
wobbled amid concerns about rising inflation and potentially
higher U.S. interest rates.
"Once you have markets hitting the highs we have seen
recently, the one thing investors are worried about is rising
inflation and what that means for profitability of companies,"
said Shawn Cruz, senior market strategist at TD Ameritrade.
The Dow .DJI closed at 34,230.34, up by 0.29%, while the
S&P 500 .SPX gained 2.93 points, or 0.07%, to 4,167.59.
The Nasdaq Composite .IXIC gave up its earlier gains and
ended 51.08 points, or 0.37%, lower at 13,582.43.
Megacap technology companies including Amazon.com Inc
AMZN.O and Facebook Inc FB.O and Alphabet Inc GOOGL.O were
down over 1%. The Philadelphia SE Semiconductor index .SOX
recovered from a sell-off on Tuesday by rising 0.61%.
Investors sold off tech on Tuesday after Treasury Secretary
Janet Yellen suggested that interest rates might need to rise in
an overheating economy.
She later clarified that a near-term interest rate hike was
not something she was "predicting or recommending" on Tuesday
evening.
The ADP National Employment Report showed U.S. private
payrolls increased in April as companies rushed to boost
production amid a surge in demand, powered by massive government
aid and rising vaccinations against COVID-19. A more comprehensive reading in the form of the Labor
Department's non-farm payrolls data is due on Friday.
The largest percentage gainer on the S&P 500 was Caesars
Entertainment Inc CZR.O , which rose 7.8% after the casino
operator said it expected to benefit from the economy reopening.
On the Nasdaq 100, the largest gainer was T-Mobile US Inc
TMUS.O , which rose 4.4% after it raised full-year postpaid
subscriber net additions forecast.
Peloton Interactive Inc PTON.O plunged by 14.6%, hitting
an eight-month low on its announcement to recall its treadmills
amid reports of multiple injuries and the death of a child in an
accident. Uber Technologies Inc's UBER.N shares fell over 4% during
afterhours trading after reporting a narrower first quarter loss
amid strong growth in its food-delivery business, while
ride-hailing bookings were flat. Volume on U.S. exchanges was 8.35 billion shares, compared
with the 9.94 billion average for the full session over the last
20 trading days.

US STOCKS-Dow ends at record high, Nasdaq falls as tech slides
 

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