Indexes rallied in the final 45 minutes of Friday’s session, turning a dull session into a day of quite respectable gains.
The Nasdaq composite was little changed for most of the day until buyers made their late entrance. The Nasdaq rose 0.5% at the close after making a positive price reversal. Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, rose 0.6% and came close to a record high.
The S&P 500 climbed 0.8% after three consecutive days of price moves of 0.4% or less. Friday’s increase marked another record high for the S&P 500 and for the Dow Jones Industrial Average.
U.S. Stock Market Today Overview
Last Update: 4:12 PM ET 4/9/2021
But Johnson & Johnson (JNJ), another health care Dow company, fell below its 50-day line. Regulators in Europe are investigating a few cases of blood clots in patients who got the J&J Covid-19 vaccine. In addition, production problems are expected to cause a sharp drop in vaccine shipments.
Small Caps, Chips Underperform Stock Market
Some key sectors underperformed. The small-cap Russell 2000 rose only 0.1%. Semiconductors were off: VanEck Vectors Semiconductor ETF (SMH) lost 0.2% but remained near record highs.
Volume fell from Thursday’s totals on the NYSE and Nasdaq, according to early data.
Innovator IBD 50 ETF (FFTY) rose 0.8%. Consumer and housing stocks made up the bulk of the day’s winners. Lovesac (LOVE) and Floor & Decor (FND) made new highs. Tempur Sealy (TPX) and At Home Group (HOME) rose sharply.
It’s not a stock market leader, but FuboTV (FUBO) surged more than 12% after the video streaming service won broadcast rights for the remaining South American soccer confederation’s World Cup qualifying games. FuboTV last month announced subscriber growth that beat views, but posted a larger-than-expected loss.
Stock Market Shakes Off Inflation Scare
The stock market opened lower after an inflation scare before the open. The producer price index rose 1% in March, above consensus views for 0.5%. Excluding food and energy costs, the index climbed 0.7%, also above forecasts.
“The cost of production, especially when it comes to goods, has moved into a very sharp upward pattern,” economist Joel Naroff wrote in a report. “Producer prices jumped again in March and it wasn’t just energy, which continued its inexorable rise, or food, which has started to accelerate. It was pretty much all over the place. There are over fifty major and subcategories and almost fifty special indices and every single one of them posted an increase in costs between February and March. And that includes both goods and services.”
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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