Stellar Week for S&P 500, Nasdaq Amid Mixed Jobs Data

The Dow struggled for most of the week

Assistant Editor
Sep 3, 2021 at 1:24 PM
facebook twitter linkedin


The S&P 500 index (SPX) stood out amongst the major indexes this week, as the benchmark nabbed its seventh-straight monthly win and several record closes, while the Nasdaq Composite (IXIC) jumped higher amid a steady run of fresh highs as well. The Dow Jones Industrial Average (DJI) wasn't so lucky, posting three straight losses at the beginning of the week before turning it around

Following last week's Jackson Hole Symposium, investors still had a great deal to unpack, including the damage Hurricane Ida dealt to the gulf coast. Though there was plenty of economic data, Wall Street had its sights set on employment numbers. On Wednesday, the ADP employment report showed private payrolls increasing by 374,000, which was far below Wall Street's estimates of 600,000. The following day, however, initial jobless claims for last week came in at a pandemic-era low. Finally, the highly anticipated August jobs report on Friday ended the week on a sour note, after nonfarm payrolls increased by 235,000, compared to the 720,000 expected. At last check, the S&P 500 index and Nasdaq were both on track for notable weekly gains, while the Dow was on pace for a weekly loss. 

Stocks Moving on News Updates

There was plenty of headlines to take a look at this week, with stocks moving in turn. Monday, updates from FAANG names had two other companies surging. Satellite services provider Globalstar (GSAT) soared after AppleInsider said the iPhone 13 will be able to utilize satellite communications, and Affirm (AFRM) blasted higher after entering a partnership with Amazon.com (AMZN). 

Moderna (MRNA) stock was sent lower after Japan suspended 1 million doses of its Covid-19 vaccine, bringing the total of withdrawn shots up to 2.6 million on contamination concerns. In other biopharmaceutical news, Switzerland-based AC Immune SA (ACIU) took off after an update on its experimental Alzheimer's disease (AD) therapy

Elsewhere, electric vehicle concern Lightning eMotors (ZEV) drove higher after a multi-year bus deal, Digital Turbine (APPS) swung higher after news that the stock will join the S&P MidCap 400, and Sprouts Farmers Market (SFM) announced a c-suite shakeup. Meanwhile, Support.com (SPRT) and Root (ROOT) were both sent higher as meme stocks entered the picture once again. 

Stocks Making Post-Earnings Noise This Week

The majority of earnings season may be in the rear-view mirror, but there were still some reports that caught investors’ eyes this week. Retailer Designer Brands (DBI) could see an unwinding of pessimism after its top-line beat. Options traders loaded up on Ambarella (AMBA) after the tech company’s blowout report, while DocuSign (DOCU) put traders positioned themselves for downside. Discount retailer Five Below (FIVE) found chart support amid its post-earnings slide, and we previewed an electric car parts stock that was set for a bigger-than-expected move.

A Look Into the Shortened Labor Day Week

The holiday-shortened week ahead is relatively quiet in terms of economic data, though there are still plenty of earnings reports, such as those from Dave & Buster's (PLAY), GameStop (GME), Kroger (KR), Lululemon Athletica (LULU),  Oracle (ORCL), and Zscaler (ZS). Ahead of the holiday, take a look at the best and worst stocks to own Labor Day Week, and what the week looks like as an indicator for the rest of the year. 

Grab your FREE Eternal Contrarian report!


 




 
Special Offers from Schaeffer's Trading Partners