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05 Mar 2021 | 16:06

US open: 'Better and more is coming', stocks slip

(Sharecast News) - "Better, and more better is coming next month and beyond." That was the reaction from Ian Shepherdson at Pantheon Macroeconomics to the better-than-expected non-farm payrolls report for February.

According to the Department of Labor, the US jobs market created 379,000 new jobs last month (consensus: 200,000) and the unemployment ticked lower by a tenth of a percentage point to 6.2% (consensus: 6.3%).

Against that backdrop, as of 1624 GMT all of the main Wall Street indices had surrendered early gains, with the Dow Jones trading down by 0.19% to 30,863.95, while the S&P 500 was off by 0.67% at 3,743.12 and the Nasdaq Composite was declining by 2.14% to 12,448.49.

What's more, February's numbers were likely to be revised higher in the March report which itself could easily see non-farm payrolls accelerate to a gain of 1.0m or more as the services sector reopens.

Coincidentally, analysts at Canaccord Genuity on Friday bumped up their recommendation for shares of Boeing to 'buy' and raised their target price from $200 to $275, including on the back an "improved outlook for travel, and as the market for wide-body, long-haul planes stabilizes."

Front month West Texas Intermediate crude oil futures were higher too, climbing 2.6% to $65.49 a barrel on the ICE.

The yield on the benchmark 10-year US Treasury note on the other hand was flat at 1.56%, having possibly already anticipated the 'good' jobs number for February over the preceding sessions.

On the subject of rising Treasury yields, Mickey Levy at Berenberg Capital Markets, chipped in saying: "The realities are real bond yields remain below zero, inflation is becoming a concern, the economy is on the verge of reopening and significant strengthening, and there is an unprecedented amount of fiscal and monetary stimulus in the pipeline, and the Biden Administration is adding much much more.

"Financial markets will have to set aside their normal craving of stimulus and deal with higher bond yields."

Commenting on the general market backdrop, strategists at Bank of America noted how the technology heavy Nasdaq-100 had now fallen back by over 10% from its most recent peak, telling clients that the "froth" had come down "sharply".

They also noted how once inflation became visible, that typically saw the Treasury yield curve 'bear flatten', with interest rates rising but earnings per share falling.

Such an environment they said had historically favoured dividend yielding stocks and defensives, as well as being accompanied by positive volatility in the prices for financial instruments.

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $46.33 3.98% Chevron Corp. (CVX) $107.80 3.16% Unitedhealth Group Inc. (UNH) $339.82 1.80% Verizon Communications Inc. (VZ) $55.70 1.64% Procter & Gamble Co. (PG) $123.99 1.51% International Business Machines Corporation (CDI) (IBM) $121.89 1.48% American Express Co. (AXP) $144.35 1.17% Intel Corp. (INTC) $58.98 1.11% Caterpillar Inc. (CAT) $215.13 1.11% Johnson & Johnson (JNJ) $154.33 0.82%

Dow Jones - Fallers

Boeing Co. (BA) $220.66 -1.80% Goldman Sachs Group Inc. (GS) $323.97 -1.62% Walt Disney Co. (DIS) $185.48 -1.36% Home Depot Inc. (HD) $247.99 -1.17% Nike Inc. (NKE) $130.74 -0.98% Apple Inc. (AAPL) $119.04 -0.91% JP Morgan Chase & Co. (JPM) $149.85 -0.47% Walmart Inc. (WMT) $127.31 -0.17% Salesforce.Com Inc. (CRM) $205.31 -0.01% Dowdupont Inc. (DWDP) $30.52 0.00%

S&P 500 - Risers

Amphenol Corp. (APH) $59.67 98.77% Diamondback Energy Inc. (FANG) $86.77 6.78% Gap Inc. (GPS) $27.01 6.42% Occidental Petroleum Corp. (OXY) $31.82 6.42% Devon Energy Corp. (DVN) $25.06 6.10% National Oilwell Varco Inc. (NOV) $16.31 5.77% Oracle Corp. (ORCL) $69.12 5.35% ConocoPhillips (COP) $58.48 5.14% Marathon Oil Corp. (MRO) $12.95 4.81% Apache Corp. (APA) $21.98 4.77%

S&P 500 - Fallers

Norwegian Cruise Line Holdings Ltd (NCLH) $28.16 -14.41% Royal Caribbean Cr (RCL) $84.14 -8.16% Carnival Corp. (CCL) $25.17 -8.12% American Airlines Group (AAL) $19.92 -6.21% Chipotle Mexican Grill Inc. (CMG) $1,275.94 -5.56% United Airlines Holdings Inc (UAL) $49.20 -5.48% Twitter Inc (TWTR) $63.62 -4.69% Synopsys Inc. (SNPS) $219.04 -4.68% MGM Resorts International (MGM) $35.56 -4.64% Delta Airlines Inc. (DAL) $45.02 -4.13%

Nasdaq 100 - Risers

Cisco Systems Inc. (CSCO) $46.33 3.98% Western Digital Corp. (WDC) $65.34 2.91% DENTSPLY Sirona Inc. (XRAY) $60.18 2.50% Fiserv Inc. (FISV) $118.29 2.37% Dish Network Corp. (DISH) $33.55 2.35% Charter Communications Inc. (CHTR) $621.16 2.22% Mondelez International Inc. (MDLZ) $55.11 2.13% Automatic Data Processing Inc. (ADP) $173.76 1.61% Micron Technology Inc. (MU) $85.45 1.33% Expedia Group Inc. (EXPE) $160.40 1.26%

Nasdaq 100 - Fallers

Tesla Inc (TSLA) $575.35 -7.42% American Airlines Group (AAL) $19.92 -6.21% Baidu Inc. (BIDU) $245.33 -5.86% Mercadolibre Inc. (MELI) $1,383.31 -5.16% Synopsys Inc. (SNPS) $219.04 -4.68% Paypal Holdings Inc (PYPL) $229.26 -4.10% Qurate Retail Inc. (QRTEA) $11.21 -4.02% Illumina Inc. (ILMN) $383.60 -4.01% Cadence Design Systems Inc. (CDNS) $123.68 -3.98%, Inc. (JD) $87.92 -3.14%
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