Markets in 5Tuesday, October 6
Nasdaq closes at a record as Treasury yields edge higher
Tech lifted US stocks to a record Nasdaq close on Monday despite a weak payrolls print, while the 10-year Treasury yield rose to 5.31% ahead of Fed commentary.
Stocks
Nasdaq posts record close as major indexes finish higher
US stocks closed higher Monday, led by the Nasdaq Composite, which rose 1.05% to 27,477.31 for a record close, according to CNBC. The S&P 500 gained 0.66% to 7,773.95, the Dow added 90.94 points, or 0.18%, to 51,267.90, and the Russell 2000 rose 0.5% to 2,847.14.
Rates
Ten-year Treasury yield rises 3 basis points to 5.31%
Official Treasury data show the 10-year yield closed at 5.31% on Monday, up from 5.28% on Friday and well above 4.78% a month earlier and 4.13% a year ago. The 2-year yield was 4.84% and the 30-year 5.66%. The 2s10s spread stood at 47 basis points.
Economy
Weak payrolls cool Fed hike bets while services data stays firm
September payrolls rose by just 29,000, well below expectations, according to Yahoo Finance, and the softer print took strength out of the dollar and reduced expectations for another Fed hike in October. The ISM services index came in at 54.9, with prices at 74.0 and employment at 50.1. The S&P Global composite PMI was 58.4.
Sectors
Technology leads gains, while Merck and Salesforce weigh on the Dow
Tech names led Monday's advance. SpaceX jumped more than 7%, Nvidia and Tesla rose 2% each, Meta gained almost 2% and Microsoft rose more than 1%, CNBC reported. In the Dow, Visa gained 2.49% and UnitedHealth 1.84%, while Merck fell 3.23%, Salesforce 2.14% and Johnson & Johnson 1.26%, according to Trading Economics.
Earnings
Apogee, Lamb Weston and RPM report before the open today
Apogee Enterprises, Lamb Weston and RPM International report before the bell, with analyst EPS estimates of $0.63, $0.59 and $1.95, respectively, according to Kiplinger. Constellation Brands, estimated at $3.55 a share, and Penguin Solutions, at $0.77, report after the close. Fed's Williams is also scheduled to speak today.