* U.S. equity indexes rise; Nasdaq, small caps out front
* Tech leads S&P sector gainers; staples weakest group
* Euro STOXX 600 up ~0.6%
* Dollar slips; gold, crude rise
* U.S. 10-Year Treasury yield ~1.70%
April 1 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
STOCKS HIGHER TO OPEN Q2 AS S&P CLEARS 4K (1021 EDT/1421 GMT)
Major U.S. indexes are higher out of the opening gate to start the second quarter, with the S&P 500 clearing the 4,000 mark for the first time, paced by gains in the tech sector
as the yield on the benchmark 10-year U.S. treasury note edged below 1.7%.
The benchmark S&P 500 first crossed the 3,000 mark on July 10, 2019, while the 2,000 hurdle was initially cleared on August 25, 2014.
Of the three major indexes, the Nasdaq is leading the way higher, as mega-caps Apple , Microsoft <>MSFT.O> and Amazon.com are all advancing by at least 1%.
Investors were able to look past a softer than expected initial jobless claims report as increasing vaccinations have fueled optimism the labor market will continue to improve.
Other data showed construction spending for February fell, but came in above expectations, while the Institute for Supply Management $(ISM)$ said its index of national factory activity jumped to a reading of 64.7 in March, its highest level in 37 years.
Below is your market snapshot:
(Chuck Mikolajczak)
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NASDAQ 100 FUTURES: CLAW BACK CONTINUES (0900 EDT/1300 GMT)
CME Nasdaq 100 futures are popping to a 2-week high in premarket trade. This as the U.S. 10-Year Treasury yield
, which hit a high of 1.7760% on Tuesday, now deflates to around 1.70%.
With Wednesday's strength, the futures overwhelmed a short-term resistance line from the February peak. However, the futures are now reaching levels that have hindered gains from late-February to mid-March:
Indeed, the futures are now reaching the 61.8% Fibonacci retracement of the February/March slide at 13,241. This hurdle capped strength on a closing basis March 16 to March 18.
The February 25, March 2, and March 16 intraday highs run from 13,285 to 13,341. Thus, the 100-point zone running from around 13,241 to 13,341 offers a significant barrier.
Of note, daily momentum studies are looking more constructive. The MACD bottomed on March 8, and crossed above its signal line on March 15. It is now rising to a more than 1-month high and challenging its zero line.
Additional Fibonacci retracement hurdles can be found at 13,488/13,526.
A reversal back below the broken resistance line, which should now act as support, and is now around 12,975, would put the futures on the back foot again. A break of the March 25 low, at 12,609, can put the early March trough at 12,194, and below, at risk.
Meanwhile, Nasdaq's recent claw back has coincided with the growth /value ratio chopping higher off its March 8 trough.
In fact, amid a sudden rotation out of more economically sensitive groups such as financials and energy and back into tech and FAANG stocks , the growth/value ratio is now on track for its biggest weekly rise since mid-January.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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