Volatile Week Packed With Dow, SPX Records

President Biden's spending plan and the latest FOMC minutes were in focus

Deputy Editor
Apr 9, 2021 at 2:28 PM
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The first full week of April certainly came in like a lion, with the major benchmarks roaring to life and picking up several record highs on the way. The week began on a strong note, as traders pored over an upbeat round of jobs data, and bond yields eased, sending both the Dow and the S&P 500 to fresh closing highs. President Joe Biden's $2 trillion infrastructure plan was also a major point of focus this week, and while this proposal has been mostly well-received by investors, stocks took a breather on Tuesday, brushing off more strong jobs data. 

By Wednesday, the S&P 500 inched back toward another all-time peak, though the Dow and the Nasdaq saw another muted day of trading, while Wall Street eyed the Federal Open Market Committee's (FOMC) latest comments on the state of the economy. This muted trading was temporary, and markets charged back by Thursday's close. The S&P 500 extended its gains, and the Nasdaq notched a triple-digit win, brushing off disappointing employment numbers. Meanwhile, mortgage rates dropped for the first time in over a month, pressured by steadily retreating bond yields. By midday today, stocks are taking a breather, though all three indexes are on track for weekly wins

Stocks Seeing Analyst Love This Week 

Plenty of big names were being noticed by analysts this week, giving many a boost, including Honeywell (HON) which jumped to fresh highs following a deluge of bull notes. U.S. Bancorp (USB), on the other hand, was unable to capitalize on an upgrade from J.P. Morgan Securities, as it struggled with technical trouble on the charts. 

Meanwhile, Illumina (ILMN) shared upbeat current-quarter and full-year guidance, prompting a price-target hike from Canaccord Genuity. JetBlue Airways (JBLU) also got a lift from Raymond James, which bet on recovery for international travel, while Wolfe Research suggested traders look into CBS Corporation (VIAC) while the stock is still on sale, following last week's dramatic plummet. 

Checking In With Big Tech

Tech stocks enjoyed a rebound this week and bond yields retreated and investors rotated back into the sector. Several sector members, in particular, were in the spotlight, including Tesla (TSLA), which surged after hitting a record number of deliveries for its first quarter. Amazon (AMZN) made its way into the headlines too, as employees awaited the results of a historic union drive. Separately, a look at the stock's past suggests AMZN might continue to climb in the second quarter, while we break down the best way to play this potential pop, considering the stock's lofty price point. On the social media front, meanwhile, photo sharing app Snap (SNAP) was getting some attention, winning praise Atlantic Equities over its strong as business an pipeline products. 

Big-Name Earnings Take a Seat Next to Fed Update

Next week, investors will be looking at the Federal budget balance, the Fed's "Beige Book," the latest round of jobless claims, as well as the Empire State Manufacturing Index. Plus, business inventories, retail sales and industrial production data will be coming out. Several major names set to step into the confessional, too, including Aphria (APHA), Bed Bath & Beyond (BBBY), Citigroup (C), Delta Airlines (DAL), Goldman Sachs (GS) and UnitedHealth (UNH). In the meantime, traders can delve deeper into buying opportunities within tech, or check out Schaeffer's Senior Quantitative Analyst Rocky White's explanation of what happens when the 10-year Treasury note yields more than S&P 500 stocks. 

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