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Main U.S. indexes mixed: DJI, S&P 500 rise, Nasdaq falls
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U.S. Feb construction spending < est
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U.S. Mar ISM Mnfg PMI, prices paid both < ests
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Euro STOXX 600 index ~flat
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Dollar, bitcoin dip; gold up, crude rallies >6%
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U.S. 10-Year Treasury yield falls to ~3.43%
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EARNINGS, DATA COULD TEST STRENGTH IN FAANG STOCKS AFTER
RECORD QUARTER [1044 EST/1444 GMT]
After a smooth Q1 for growth and technology stocks which drove record quarterly gains for the NYSE FANG+TM index , investors are now concerned that renewed inflation fears, upcoming economic data and the earnings season could test their strength.
The index, which includes Alphabet Inc , Tesla Inc and Apple Inc , slipped 0.9% after a near 40%
surge in the first quarter, as rising Treasury yields prompted a
rotation out of growth stocks into energy and financials.
Growth stocks have rallied since the start of the year on
hopes of smaller interest rate hikes by the Federal Reserve,
lifted further after the banking turmoil in March. The S&P 500
growth index is up 9.8% so far this year versus 7% gain
in the S&P 500 .
"This week's economic data could be a catalyst for Q1 market darlings, such as high PE semiconductor stocks, to take a haircut," Saxo's market strategist Jessica Amir said.
Key economic data this week include the JOLTS job openings on Tuesday and monthly payrolls report on Friday. Monday's figures showed U.S. manufacturing activity slumped to the lowest level in nearly three years in March as new orders continued to contract.
Most megacap growth and tech stocks edged lower on Monday,
with TSLA down 5.3% as worries on excess production overshadow
record deliveries.
"The real test is possibly still to come with the next set
of earnings updates, which will provide some clarity on whether
investors are still putting too high a value on big U.S. brands
at a time when the consumer is still under pressure," said Danni
Hewson, head of financial analysis at AJ Bell.
Constituents Q1
gains (%)
Apple Inc 26.9%
Amazon.com Inc 23.0%
Microsoft Corp 20.2%
Tesla Inc 68.4%
Alphabet Inc 17.6%
Advanced Micro Devices 51.3%
Meta Platforms 76.1%
Netflix Inc 17.2%
Nvidia Corp 90.1%
Snowflake Inc 7.5%
FANG+TM Index 39.2%
(Bansari Mayur Kamdar)
**** U.S STOCKS MIXED, BUT ENERGY SHARES ON THE MOVE (1010 EDT/1410 GMT) U.S. stock indexes are mixed early on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses. Saudi Arabia and other OPEC+ oil producers announced further output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices. In any event, the DJI is jumping, while the S&P 500 is modestly higher. The Nasdaq is lower. Energy is leading S&P 500 sector gainers higher with a jump of more than 5%. NYMEX crude futures are posting a more than 6% rise and are back over $80. Of note, after finally flirting with its 200-week moving average in mid-to-late March, CLc1 has gained more than 25%. Here is an early trade snapshot:
(Terence Gabriel)
*****
CAN S&P 500 INDEX BUILD ON ITS TRENDLINE BREAKOUT? (0901 EDT/1301 GMT) The S&P 500 ended last week on a high note, rising for three-straight days, while closing at 4,109.31, which put it just slightly above the resistance line from its January 2022 record high:
That said, with e-mini S&P 500 futures dipping slightly in premarket trade, the SPX appears poised to pullback around 5 points at Monday's open.
Still, the broken resistance line should now attempt to act as support at around 4,098 on Monday. A resumption of strength should keep the S&P 500 focused on a key barrier that runs from 4,195.44 to 4,203.04. This zone also includes the 23.6% Fibonacci retracement of the March 2020-Janaury 2022 advance at 4,198.70. Since breaking back below this Fibonacci retracement on August 22 of last year, the SPX has managed by decimals, just one daily close back above this line. That was on August 25, one day prior to Fed-Chair Powell's especially hawkish August 26 Jackson Hole speech, which ultimately sent the SPX sliding to new lows. Strength into this year's early February high once again stalled as the benchmark index flirted with this resistance zone. Thus, traders remain keenly focused on this barrier to see if the SPX can ultimately breakout of its multi-month range to the upside. Quickly closing back below the broken trendline from the January 2022 high can put the SPX on the back foot again within the confines of its range. The next support is at the early and late-March highs at 4,078.49 and 4,049.49. The rising 50-day moving average should be just over 4,020 on Monday.
(Terence Gabriel)
*****
FOR MONDAY'S LIVE MARKETS POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
