Wall Street edges up, but giants weigh on Nasdaq - RTHK
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Wall Street edges up, but giants weigh on Nasdaq

2021-05-04 HKT 05:20
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  • Wall Street enjoyed a relatively strong session amid an upbeat earnings season. File image: Shutterstock
    Wall Street enjoyed a relatively strong session amid an upbeat earnings season. File image: Shutterstock
The S&P 500 and the Dow indexes ended higher on Monday amid a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and "economy reopening" stocks continued.

Economy-sensitive cyclical S&P 500 sectors such as consumer staples, energy, and materials outperformed sectors housing growth stocks, including technology and communication services,.

The largest percentage gainer on the S&P 500 was oil field services firm Baker Hughes, which rose 8 percent. Apparel retailers also finished strong, with Gap shares jumping 7.1 percent and Foot Locker up 4.1 percent.

"All of those names that are having outsized gain today are as a result of economic reopening optimism, and people getting out of the house spending money on things," said Michael James, managing director of equity trading at Wedbush Securities.

The Dow Jones Industrial Average rose 0.7 percent to close at 34,113 points, while the S&P 500 gained 0.27 percent to 4,193. The Nasdaq Composite dropped 0.48 percent, to 13,895.

"We've seen a slight change in the pace of value stocks outperforming growth stocks year-to-date," said Rod von Lipsey, managing director at UBS Private Wealth Management.

The Nasdaq index fell as megacap technology stocks, including Amazon.com Inc, Alphabet, Facebook and Microsoft, traded lower despite largely upbeat results.

The stocks have struggled to maintain the upward trajectory coming into reporting season. Chipmakers also fell, with the Philadelphia SE Semiconductor index down by 1.2 percent. (Reuters)